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Topics: Risk Management
Examples of positive risk?
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Can anyone give me some examples of positive risk on projects please? I have one example that I use all the time: a website that is more popular than expected and gets loads more hits than planned. I'm not even sure that's a great example. What else can I use when I'm talking to stakeholders and my team about positive risk? Thanks!
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I will give you an example we have experienced in the real life and please do not want to sound rude or something like that. I worked (and I am working) in multi-national multi-country companies. When the aviar influenza (A 1H1) what was a risk in a global project becomes an opportunity when those activities were performed in a place in South America where we got better conditions related to cost and we can avoided the risk too. Other. Development team was located in India. Because the possibility of war between India and Pakistan there was a risk in a Hugh global project. Divisions located in South America understand that there was an opportunity and development was got to South America team and that team becomes a service provider for the whole company. And I can write more. The point is: companies are always following the evolution and events of the environment to see if risk can become opportunities. But the key is to be prepare to take the opportunity and transform a negative risk into positive. That is the key. One of the justifications to implement Agile at whole company is that. Hope it helps.
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Elizabeth -

Another example would be how PostIt notes were invented. If I am not mistaken, the person who created the adhesive which makes those work was actually trying to create something else, but was able to turn failure into a much bigger success.

There are many examples like this from the pharma industry where a drug formulated for one purpose was actually much better for something else and had the company not exploited the opportunity, they would have missed the realization of a good positive risk.

Kiron
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1 reply by Markus Klein, PMP
Sep 24, 2017 9:35 AM
Markus Klein, PMP
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The discovery of viagra was such an example; as I know it right they have searched for a blood pressure medicament and found the best-selling product ever ...;)
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1. Possible legislation to remove the barriers which will have caused more time and cost.

2. Firm foundation beyond the design requirement which might take longer period of time otherwise.

3. Price fluctuations which act favorably to a project.

4. A project site will be out of hurricane path which was expected to delay the project significantly.

5. others

Many positive risks might be on the same spectrum of negative risks but just opposite side to negative risks, and vice versa.
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Positive risk is essentially defined as 'too much of a good outcome', so I think your website example embodies the idea of positive risk quite well. Another positive risk example is that a tire manufactured to last 50,000 km actually lasts 1 million km (with the risk being that tire sales would plummet, since people wouldn't need to regularly replace their tires).
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1 reply by Veronica Tremblay
Sep 28, 2017 1:38 AM
Veronica Tremblay
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This actually seems to be a different definition of positive risk from the one used in the other examples here. Do you think their understanding is incorrect or does positive risk encompass both possibilities (too much of a good thing and spinning a risk that could be negative as a positive)?
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Sep 23, 2017 6:57 PM
Replying to Kiron Bondale
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Elizabeth -

Another example would be how PostIt notes were invented. If I am not mistaken, the person who created the adhesive which makes those work was actually trying to create something else, but was able to turn failure into a much bigger success.

There are many examples like this from the pharma industry where a drug formulated for one purpose was actually much better for something else and had the company not exploited the opportunity, they would have missed the realization of a good positive risk.

Kiron
The discovery of viagra was such an example; as I know it right they have searched for a blood pressure medicament and found the best-selling product ever ...;)
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Another example is if you do have to outsource some project work and process a bidding on it; cause of the bidding process the work may be much cheaper than you do have calculated originally ...
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If a client contract is up for renewal and you are the incumbent.
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1 reply by Kiat Soon Chua
Sep 27, 2017 9:02 PM
Kiat Soon Chua
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Hi Stephane, in this case, how do we appreciate this asa positiove risk? Care to share more on this? Thanks!
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Thanks, everyone for all these great examples.
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An additional example is a byproduct for which a value-added use is possible if certain conditions can be met. In one of our software upgrade projects, we were able to gather data (via new fields available in the upgraded screens) that was not relevant for our purposes, but was useful for business intelligence. The risk was that enabling these fields and creating storage for the data might have made project (and ongoing) costs rise disproportionately. By integrating with upstream and downstream partners, we were able to determine the most valuable data to capture, quantify the value stream, improve our ROI, and secure additional funding. A lucky break, I guess (if luck is defined as long hours, excruciating data analysis, endless number-crunching, constant replanning, etc)--lol.

Actually, it's great when these opportunities can be captured, despite the additional complexity involved...
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Sep 24, 2017 7:53 PM
Replying to Stéphane Parent
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If a client contract is up for renewal and you are the incumbent.
Hi Stephane, in this case, how do we appreciate this asa positiove risk? Care to share more on this? Thanks!
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1 reply by Stéphane Parent
Sep 28, 2017 4:19 AM
Stéphane Parent
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I'm glad you asked, Kiat.

Since you are the current contract incumbent, you have a "risk" (opportunity) of being in an advantageous position for the contract renewal. As the incumbent, you should "enhance" this advantage by leveraging your knowledge of the customer and proposing solutions and services that are highly specific and tailored. You could also "enhance" your offering by finding ways to be more efficient, thus reducing your costs.
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