What is the difference between a risk and an issue?
Anonymous
I am working with some folks who are PMs but not in the IT field. I'm a PM in the IS department and couldn't actually come up with a good clear distinction between an issue and a risk for the folks that I'm working with. Can someone help me define these two? Thanks. Saving Changes...
Peter WrightProgramme Manager| BAE SystemsSouthport, Merseyside, United Kingdom
Extracted the text in the RAID Log for easier reading
Prince2 description of a Risk = Defined as uncertainty of outcome, whtehr positive opportunity or negative threat.
Description of Issue = "Project Issue" A term used to cover any concern, query, Request for Change, suggestion or off-specification raised during the project. They can be about anything to do with the project.
APM BoK/PRAM description of a Risk = An uncertain event or set of circumstances which, should it occur, will have an effect on the achievement of the projects objectives. [also refer BS6079-3]{Risks should be managed by the Project Manager and allocated a separate owner}
Description of Opportunity - A positive event [Risk] or outcome of proactive risk mitigation.
Description of Issue - An Issue is a Risk that can not be managed by the Risk Manager/Project Manager and needs to be referred to the Project Board for Review/Action.
PMI BoK/PRAM - Description Of Risk = An uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives.
Description of Opportunity - A condition or situation favourable to the project, a positive set of circumstances, a positive set of events, a risk that will have a positive impact on project objectives, or a possibility for positive changes. Contrast with Threat [A condition or situation unfavourable to the project, a negative set of circumstances, a negative set of events, a risk that will have a negative impact on a project objectives if it occurs, or a possibility for negative changes].
Description of Issue - A point or matter in question or in dispute, or a point or matter that is not settled and is under discussion or over which there are opposing views or disagreements.
Uk HM Treasury Orange Book Description Of Risk = uncertainty of outcome, whether positive opportunity or negative threat, of actions and events. It is the combination-nation of likelihood and impact, including perceived importance
ISO/IEC27005 & 27001Information Security Risk Management Standard - Description Of Risk = is the likelihood that something bad will happen that causes harm to an information asset. [Risk is a function of the likelihood of a given threat-source's exercising a particular potential vulnerability, and the resulting impact of that adverse event on the organization]
ISO 14971:2007 - Risk Management product lifecycle for medical devices - Description Of Risk = A Measure of the probability and severity of undesired effects; it is often taken as the simple product of probability and consequence. Combination of the probability of occurrence of harm and the severity of that harm
Software Engineering Institute - Description Of Risk = The Software Engineering Institute (SEI) defines risk as the possibility of suffering loss. In a development project, the loss describes the impact to the project which could be in the form of diminished quality of the end product, increased costs, delayed completion, loss of market share, or failure.
UK MOD Acquisition Operational Framework (AOF) - Description Of Risk = A significant uncertain occurrence, differentiated from an Issue by virtue of its lack of certainty. A Risk is defined by the combination of the Probability of an Event occurring and its Consequences on objectives. NOTE: The term “Risk” is generally used to embrace the possibility of both negative and/or positive consequences. However, “ Opportunity ” is specifically used to define those Risks with only the possibility of positive consequences. A condition where the outcome can only be estimated. NOTE: the term Uncertainties is also specifically used to describe uncertain occurrences that are considered insignificant in terms of impact on objectives.
Description of Opportunity - A Risk with positive Consequences. Combination of the Probability of an Event occurring and its positive Consequences on objectives.
Description of Issue - A significant certain occurrence differentiated from a Risk by virtue of its certainty of occurrence and by the fact that it should be accounted for in Planning & Scheduling activities and not Risk Management.
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1 reply by Michael Coleman
Nov 27, 2021 12:44 PM
Michael Coleman
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These standards you provide are very helpful Peter. The documentation of the differences between the 'issues and the 'risks' in log form helps to distinguish those from problems that will directly affect the organizations' strategy.
Risk is concerned about future happenings which could have a negative or positive impact with an uncertain probability
Issue is a known fact with a certainty Saving Changes...
Satyabrata PattanayakAssociate Manager - Project,PMP,Six Sigma Green Belt| DubaiDubai, United Arab Emirates
There is a preventive and as well a reactive action for all complex activity.
Risk is preventive and Issue is reactive.
If you have not taken any action against risk, then it will become issue in later. Saving Changes...
Philip MarnoPMO Manager| DNVGLAberdeen, United Kingdom
What I don’t see mentioned here is the category of Risk that Prince2 terms as “Opportunity”.
An Opportunity:
Prince 2: an uncertain event that could have a favourable impact on objectives, this type of rick can be exploited, enhanced, rejected or shared.
Many thanks to everyone for these postings, I’m new to formal project management and the content here is proving invaluable.
Saving Changes...
Sylvie EdwardsProfessor/Program coordinator| Durham College (DC)Whitby, Ontario, Canada
Okay here's what I teach people when discussing these 2:
an issue is NOW it is happening and it needs to be dealt with either through your planning for it previously or coming up with a plan on how to work it out
a risk is in the FUTURE and is something that you think might happen that you set plans for but that might not happen. The planning from risk management is what usually gets triggered when dealing with issues.
hope this helps Saving Changes...
Anonymous
A risk it is an event that might occur or might not , if risk is triggered then you will revert back to Risk reponse plan to mitgate risk .
While an issue it is something that you face on spot and you dont have to plan for it for example a resource retentation , i will hire another resource . Saving Changes...
A risk it is an event that might occur or might not , if risk is triggered then you will revert back to Risk reponse plan to mitgate risk .
While an issue it is something that you face on spot and you dont have to plan for it for example a resource retentation , i will hire another resource . Saving Changes...
Risk and issue are two words that are often confused when it comes to their usage.
A risk is an uncertain event that, if materialized, could alter a chosen course for a project. A risk is an event that has no effect at the present time, in other words, it has not happened yet. However, there is a worthwhile possibility for a risk to turn into an issue when it has been realized.
Summary:
-> A risk is a potentiality of an event that may affect the course of a project plan, while an issue is a risk that has been realized, although not always.
-> A risk has no effect in its current state, while an issue may be problematic.
-> A risk may be absorbed into a project with no effect at all, while an issue usually has effects, mainly negative.
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