Answering Dave Davis' Risk Question
From the PMI Global Insights Blog
by Cameron McGaughy,
James Turchick
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Hi Mr. Davis!
First, you’ve asked an excellent question. I think there’s really two parts to it. Some of the ones you list could affect the project only (resignation) but some of them are corporate level risks (cyber-attack).
There should be good risk-stewards at the corporate level, working with the accounting and general management folks to forecast and protect against hurricane, tornados, zombies, whatever. These risks are out of the project manager’s hands and are part of the overall business risk assessment. You *could* say these are “organizationally accepted risks.”
That’s all “C-Suite” stuff. Sure, your project may get washed away in a hurricane, but the PM isn’t really held responsible for insurance, or claims, or set-asides for that. Perhaps, a PM may get involved in planning for data safe-backups (offsite) but even that is not common.
But! As a top-notch Project Manager, when you think of these ORGANIZATIONAL types of things, I believe it’s your duty to ensure that the general business folks have considered them. So, for instance, I had the sprinkler system come on over a weekend (no fire) and it stayed on until Monday. I never imagined that would happen. If I was just a bit smarter I would have, and would have politely asked the folks upstairs in the corner office if they had set aside funding to take care 2 feet of water from sprinklers. I don’t consider this to be a project risk, but an Organizational level risk
So, if you can imagine a business risk and it has some likelihood of occurring you have an honor-bound duty to inform the business risk people about it. If they don’t take care of it, then you must handle it on the project.
If it’s a commonly accepted risk taken at the project level (a late deliverable) then it should be in your project’s risk register and you’ll be the grass and the executives will be the lawnmower.
-- Dave
Posted
by
David Maynard
on: October 10, 2017 07:28 PM |
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Comments (5)
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Rami Kaibni
Community Champion
Senior Projects Manager | Field & Marten Associates
New Westminster, British Columbia, Canada
Dave Davis
Senior Project Manager| Cincinnati Children's Hospital
Springboro, Oh., United States
thanks. We had a sprinkler system pip burst in a printing center over the holidays - significant loss of materials (paper, ink, paper) and a very expensive mess to clean up. I was doing network project that had to have a circuit installed thee, so the damage wasn't my concern - but delay in project was :)
Looking forward to seeing you in Chicago.
Stéphane Parent
Self Employed / Semi-retired| Leader Maker
Prince Edward Island, Canada
Each organization should have an enterprise risk management (ERM) function to deal with organizaitonal-wide risks. Our project risks register should dovetail with the enterprise risks register. In some cases, we can accept the enterprise risk actions. In other cases, we may need to supplement within our project.
Vincent Guerard
Coach - Trainer - Speaker - Advisor| Freelance
Mont-Royal, Quebec, Canada
Thanks David
In line with my experience.
Risk of a power failure at the main office can affect the project but should be address by ERM. The off site project office can’t be responsible or can’t manage it.
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