I'm looking for positive risk example that can be shared. We all have problem in identifying positive risk.
How was it identified?
At what stage? initiation, execution...
What was done?
You can post to this discussion or directly to me. Saving Changes...
A common positive risk (read as opportunity) comes in the form of discounts or bulk savings or promos after the initial quote for product/products. Say 5% saving on software licensing for example. It doesn't sound like much, but when you are rolling out 5,000 hardware systems and they all need to be upgraded with OS and apps, and suddenly the vendor offers it either through negotiation or for bulk buying for example, it can add up to a significant positive risk.
Thanks Sante,
True a surprise discount would be a positif impact. Do you put it in your risk register? Saving Changes...
In my experience Positive risks (Or any other risk) can be identified at any stage of the project. However, early identification always gives benefit to the project team to respond and accrue most benefits from the same. As the projects evolve with time in to different phases clearer the requirements, scope and the risk etc become which is commonly known as rolling wave phenomena.
If you are a contractor, example of a positive risk can be an additional work which takes place in the scope of your project due to an external Issue or Accident. These Issues & Accidents normally delay projects and normally comes as high profile requirements to the end users.
Due to the former knowledge & the experience of the scope and construction you have better chances to win the rectification scopes compared to external competitors. Hence, the positive risks can come at any stage of the project.
Thanks Prasanna,
Yes the earlier we identifie a risk the more opportunity to work at resolving it.
In you risk register you would put something about a "change that would add delay and give other component more time" something in those line? Saving Changes...
many risk have two sides, we often neglect the positive one.
Changing practice to "leading practice" could have a positive impact on the project. Too often we just take about possible negative impact of change and implementing new practice. Saving Changes...
Here's a fairly common one when it comes to any project involving a new product or service offering. Operations and sales teams will often consider the negative risk of a launch not achieving sales targets but how many plan for the reverse? If we were to generate a much higher volume of sales than was expected, how might we deal with the realization of that positive risk? One might introduce a strategy to exploit it, or if there's no way to do so then perhaps a share strategy might make the most sense.
Kiron
Thanks Kiron,
Not sure I get it. Better sales or higher volume is additional benefits from the project. I don't see it like an opportunity during the projet execution.
I agree, it is a positive risk on the outcome of the project. Interesting, I was more in the context of the execution.
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1 reply by Kiron Bondale
Dec 05, 2017 11:48 AM
Kiron Bondale
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Vincent -
I didn't restrict risk focus to project life risks only - when identifying risks, I always look at risks to both project and business outcomes. If we are surprised by a much higher volume of sales than anticipated and unable to handle those and end up with unhappy potential customers, that would point to a failure in the project to plan for scalability.
Treating that as an opportunity risk and tracking early warning signs of getting more interest than we thought for could prevent this situation.
In construction industry, positive risk or opportunity is bulk purshasing of materials for various projects may provide cost reduction.
Thanks Mansoor,
Discount, yes a positive risk.
What about better climatic condition that increase productivity. Would you put that in your risk register? Saving Changes...
In Telecom systems, we plan system capacity on the basis of ARPU and Erlange utilization of telecom E1's in past (average units for geographies). These element brings a huge contribution in Capex model, if post capability planning of system by change there utilization (average) for specific services drops it get translate into a positive risk and save a lot of money (in specific business use-cases).
Thanks Rajeev,
So a lower utilisation then expected would be a positive risk in your register. Saving Changes...
Not sure I get it. Better sales or higher volume is additional benefits from the project. I don't see it like an opportunity during the projet execution.
I agree, it is a positive risk on the outcome of the project. Interesting, I was more in the context of the execution.
Vincent -
I didn't restrict risk focus to project life risks only - when identifying risks, I always look at risks to both project and business outcomes. If we are surprised by a much higher volume of sales than anticipated and unable to handle those and end up with unhappy potential customers, that would point to a failure in the project to plan for scalability.
Treating that as an opportunity risk and tracking early warning signs of getting more interest than we thought for could prevent this situation.
Kiron
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1 reply by Vincent Guerard
Dec 05, 2017 5:35 PM
Vincent Guerard
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Kiron,
When doing a PPP type project that's what I do. When I posted the question I was in the project execution, not in the full capital life cycle. Your example is excellent.
- In some contracts there is a reward for completing the project earlier than baseline.
- Another example, if you ship earlier than a certain date you might be able to recognize the revenue in this year's books rather than next year.
- If a certain experienced resource could be released from another project and join your project, that could improve the resource utilization scores of your project.
- Being able to complete an out of scope, but desirable, feature of the software before the project completion which could result in added value to the customer and increase customer satisfaction.
- Drop in the price of material.
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1 reply by Vincent Guerard
Dec 05, 2017 5:38 PM
Vincent Guerard
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Thanks Ayat,
Good examples.
In those line, I recall the reconstruction of the freeway near San Francisco, the contractor made millions by delivering weeks early.
Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Italy and Holland teams will not participate into Rusia Football Cup 2018. Positive risk for Argentina.
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2 replies by Ayat Rezaeifar and Vincent Guerard
Dec 05, 2017 3:45 PM
Ayat Rezaeifar
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:) Good one! However, its not a risk anymore! Its a known event!
Dec 05, 2017 5:40 PM
Vincent Guerard
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Sergio, Thanks
Since two usually good teams are out, it increase the risk of winning the Cup for Argentina.
Italy and Holland teams will not participate into Rusia Football Cup 2018. Positive risk for Argentina.
:) Good one! However, its not a risk anymore! Its a known event!
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1 reply by Sergio Luis Conte
Dec 05, 2017 3:48 PM
Sergio Luis Conte
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You right. It was a risk before it becomes an issue. Now is an materialized opportunity that Argentina needs to capitalize inside the planning for things like logistic and others.
