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Hello Sachin – and thanks for your post. To ensure your post facilitates dialogue, I suggest starting with a clear open-ended question. This will allow your fellow community members the opportunity to engage in a meaningful discussion. I hope this helps, and when you have a moment, I encourage you to introduce yourself to PMI’s Online Community at https://www.projectmanagement.com/discussion-topic/193917/welcome--introduce-yourself-to-pmi-s-online-community. I look forward to seeing you around the community! ...
1 reply by Sachin Aggarwal
Sep 04, 2024 8:53 AM
Sachin Aggarwal
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Thank you, Kimberly. As suggested by you, I have posted my introduction on the community page. I look forward to regular integration with members of this forum.
Regards Sachin 
Sachin -
And I'd add that this has to be taken into the context of program-level risk, portfolio risk, business risk & overall enterprise risk. The new RM practice guide does a good job of covering the interactions between all of these risk domains. Kiron ...
1 reply by Sachin Aggarwal
Sep 04, 2024 9:07 AM
Sachin Aggarwal
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Thank you, Kiron. This is helpful. Please let me share some additional background, and request for further insights on this topic. Actually, I recently came across this question.
Based on my “potentially insufficient” understanding of the topic, I feel that none of the response listed above suits the response to the given situation. The project manager should instead be concerned about the “cumulative” risk exposure of all the risk, and ensure that this risk is below the “project risk threshold”.
Sep 03, 2024 7:21 PM
Replying to Kimberly Whitby
...
Hello Sachin – and thanks for your post. To ensure your post facilitates dialogue, I suggest starting with a clear open-ended question. This will allow your fellow community members the opportunity to engage in a meaningful discussion. I hope this helps, and when you have a moment, I encourage you to introduce yourself to PMI’s Online Community at https://www.projectmanagement.com/discussion-topic/193917/welcome--introduce-yourself-to-pmi-s-online-community. I look forward to seeing you around the community! Regards Sachin
Sep 04, 2024 7:32 AM
Replying to Kiron Bondale
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Sachin -
And I'd add that this has to be taken into the context of program-level risk, portfolio risk, business risk & overall enterprise risk. The new RM practice guide does a good job of covering the interactions between all of these risk domains. Kiron Thank you, Kiron. This is helpful. Please let me share some additional background, and request for further insights on this topic. Actually, I recently came across this question.
Based on my “potentially insufficient” understanding of the topic, I feel that none of the response listed above suits the response to the given situation. The project manager should instead be concerned about the “cumulative” risk exposure of all the risk, and ensure that this risk is below the “project risk threshold”.
...
1 reply by Kiron Bondale
Sep 04, 2024 12:18 PM
Kiron Bondale
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Sachin -
The challenge with this question is that the threshold at the organization level does not specify what impacts resulting from realized technology risks might be tolerated - is it any and all? At the project level, the threshold references cost impacts but is that it? Will the leadership team tolerate risks which erode the expected benefits even if the project manages to stay within cost constraints? In general, I'd say that the constraints imposed by risk thresholds are accumulative across all levels unless an explicit exception is secured by the sponsor to waive the threshold at the organization level. Kiron 
Sachin
great question for any PM to understand. Kiron's hints are most valuable, too, regarding the context of project risk management. My view on project risk is that it is more than a cumulation of individual risks, it even might not be much about them. It includes the unknown unknowns, the black and grey swans, that are not expressed as individual risk. So the approach to project risk has to be holistic, top-down analyzing the project context and maybe reflecting on lessons learned (like reference class forecasting looking at previous similar projects for estimates).
Sep 04, 2024 9:07 AM
Replying to Sachin Aggarwal
...
Thank you, Kiron. This is helpful. Please let me share some additional background, and request for further insights on this topic. Actually, I recently came across this question.
Based on my “potentially insufficient” understanding of the topic, I feel that none of the response listed above suits the response to the given situation. The project manager should instead be concerned about the “cumulative” risk exposure of all the risk, and ensure that this risk is below the “project risk threshold”.
The challenge with this question is that the threshold at the organization level does not specify what impacts resulting from realized technology risks might be tolerated - is it any and all? At the project level, the threshold references cost impacts but is that it? Will the leadership team tolerate risks which erode the expected benefits even if the project manages to stay within cost constraints? In general, I'd say that the constraints imposed by risk thresholds are accumulative across all levels unless an explicit exception is secured by the sponsor to waive the threshold at the organization level. Kiron 
Keith Novak
Tukwila, Wa, USA
Sachin,
Here's your statement that got me stuck and caused me to think: The organization has a high risk appetite due to the strategic benefits expected from the technology, but the project’s risk threshold is relatively low. To me that says the project needs to be better aligned with the organization's strategy. This is where I actually get to flex my power as a PM. Lay out the facts as you think best represent the business pros and cons as you can and what is the right plan going forward. Now the question is up to your stakeholders: Given the facts, do you want to pursue the strategic opportunity, or take a conservative approach on your project? You can go either way, but leverage what information you have to support your best recommendation. 
Sachin,
Individual risks can significantly impact overall project success in several ways: Cumulative Effect: While individual risks may seem minor, their combined effect can lead to substantial issues that jeopardize project timelines and objectives. Resource Allocation: Unmanaged individual risks can divert resources away from planned activities, leading to delays and increased costs. Impact on Stakeholder Confidence: If individual risks are not addressed effectively, they can erode stakeholder trust and confidence in the project's management and outcomes. Delay in Decision-Making: Individual risks can create uncertainties that slow down decision-making processes, affecting the overall project timeline. Quality Compromise: Focusing too much on mitigating individual risks may lead to compromises in quality if project teams rush to meet deadlines. Team Morale: Frequent issues arising from individual risks can lower team morale and motivation, impacting overall productivity and collaboration. Reputational Damage: If individual risks lead to project failures or poor outcomes, it can harm the reputation of the organization and its project management capabilities. Increased Complexity: Managing multiple individual risks can complicate project management efforts, making it challenging to maintain focus on overarching project goals. Risk Propagation: Individual risks can trigger a chain reaction, leading to new risks that further complicate project execution. Stakeholder Relationships: Unresolved individual risks may strain relationships with stakeholders, particularly if they feel their concerns are not being adequately addressed. Effectively managing individual risks is essential to ensuring they do not escalate and negatively impact the overall success of the project. Karim |
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