A risk profile is a tool that can help organizations better understand their risk exposure, who “owns” it, where risk management effort and money is going, and their capacity to absorb risks. Here we take a closer look at this concept, including a sample risk profile template to help get you started.
Risk cannot be be managed in a vaccuum. It must be aligned with an organization’s strategic goals, and roll down from the portfolio to programs and projects. Here is an example of how a company’s goal to increase market share might impact risk at the project level.
A thinking tool called the Six Value Medals can help us identify and assess project risks that we might otherwise overlook. It offers a broader perspective on things that are important to organizations, groups and individuals than is usually found in the typical risk process.
Compiling a list of risks for your project doesn’t address “how risky” your project actually is. This requires an understanding of the dual concept of individual (explicit) and overall (implicit) project risk. It is vital that project managers take action at both levels.
What exactly is organizational risk management, how does it differ from project risk management, and why should project managers care? In this new series, we will explore these questions and introduce some important related concepts, starting with the constraints hierarchy.
Risk management isn’t always about identifying the downside, though many project managers seem to focus exclusively on this side of the risk coin. The fact is, we can assess and prioritize opportunities using the same techniques that work for threats, including brainstorming, root-cause analysis and probability-impact matrices.
There are four characteristics that every organization must possess to make enterprise risk management work. Some of these prerequisites will take more time to develop than others, but that shouldn’t keep you from getting started with a pilot effort that can show the way.
Starting with the expectation that all projects should succeed is misguided because it hinders risk-taking and creativity. True innovation is built first on failure. Still, risk management has an important role to play in every project.
Projects are not equally risky, and your risk management process should be scaleable to match the level of risk challenge faced by each. How? Here are the elements of a typical risk management process that can be readily scaled to fit the needs of a range of projects.