Pure risks are these risks have only a negative outcome, according to this definition, Covid-19 is a pure risk, so it should not be identified in risk register as risk register includes business risks only.
If Covid-19 happened in your project, you have to escalate it to your organization to take the proper action. Saving Changes...
I'm not clear on where you are getting the "definitions" in your first sentence? A risk register could be used to track any types of risks - it is just a generic information repository. If we are talking about a project risk register then that should be focused on project delivery and project benefits realization risks.
COVID-19 will be, for most companies, a source of risks - mostly negative, but potentially some positive ones. For example, if you are a manufacturer of products which are suddenly in very high demand (e.g. hand sanitizer), then it has been a source of tremendous opportunities (i.e. positive risks).
Hi Kiron,
Thanks for feedback. But I think manufacturer of a product not representing a project, it is an operation.
Best Regards,
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1 reply by Keith Novak
Mar 30, 2020 1:49 PM
Keith Novak
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Manufacturing includes both projects and operational work. Setting up the manufacturing is a project. Distilleries have switched from alcohol production to hand sanitizer production. That is a project. Once the production line is up and running, that is operations but there may be other projects such as quality improvement to the existing manufacturing processes.
Saving Changes...
jay patelproject manager| Netcon Technologies India Pvt LtdVadodara, Gujarat, India
It can be true risk for most of the projects in running. But it can be also a opportunity of some new products manufacturer products either in way of expansion or new venture development. Saving Changes...
LORI WILSONRETIRED - Technical Project Manager| RETIRED - LifePoint HealthClarkston, Wa, United States
Hello Mohamed: I work in the healthcare industry, and COVID-19 risks have been added to my risk register. They impact resources, materials, and project priority given the hospitals are overloaded and trying to respond to the immediate crisis. This means they cannot participate in project meetings, training for new implementations, etc. This is having an impact on all my projects right now. I have not heard of a pure risk before, I have always added any type of risk to the risk register. Saving Changes...
Risk register includes any type of risk, pure or business risks. COVID-19 maybe generally a negative risk, but in special cases, it can be positive, for example in the development projects of new technology for best medical diagnostics, new prototypes of respirators, or technology to avoid contact with surfaces (like holography buttons for elevators), etc. Saving Changes...
Hi Kiron,
Thanks for feedback. But I think manufacturer of a product not representing a project, it is an operation.
Best Regards,
Manufacturing includes both projects and operational work. Setting up the manufacturing is a project. Distilleries have switched from alcohol production to hand sanitizer production. That is a project. Once the production line is up and running, that is operations but there may be other projects such as quality improvement to the existing manufacturing processes. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Mohamed
COVID 19 is an "Issue" now as it is realized and this issue imposes risk on all industries and businesses on so many level with high level of uncertainty.
Product Operations Program ManagerBarcelona, Cataluña, Spain
Fully concur with Rami. It is important to understand the concepts:
A risk is something that hasn't happened yet but has some probability of occurring. An issue is essentially a risk that has happened. In other words, risks are potential future problems and issues are current problems.
Thus, the covid-19 pandemic is an issue (current). The unknown (future) duration of the pandemic is a risk. Saving Changes...
jay patelproject manager| Netcon Technologies India Pvt LtdVadodara, Gujarat, India
Agree with Eduard, "It is important to understand the concepts ".
There are two categories of risks:
• Pure risks These risks have only a negative outcome. Examples include loss of life or limb, fire, theft, natural disasters, and the like. These risks are often referred to as insurable risks.
• Business risks These risks may have negative or positive outcomes. Examples include using a less experienced worker to complete a task, allowing phases or activities to overlap, or forgoing the expense of formal training for on-the-job education. These risks are also known as speculative risks.
So, covid-19 pandemic belongs to which category?
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1 reply by Kiron Bondale
Mar 31, 2020 7:42 AM
Kiron Bondale
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Mohamed -
If you are referring to the pandemic itself, it is neither of those as it is NOT a risk. It is an issue. A future potential recurrence of this virus or a new pathogen might be considered a pure risk, and likely one with a higher probability than we might have assessed previously.
However, as I wrote in a separate thread, COVID-19 is a source of many possible business risks including reduced market interest for a new product, lack of sufficient healthy staffing to meet a milestone, or insufficient funding made available for a strategic project.
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