Risks are important. Projects are unpredictable and it is better to be prepared for the worst.
This is the purpose of risk management: you need to think about what could go wrong before it happens, so that you can create a plan to handle it if it does.
That sentence is full of uncertainty and hedging: “if …”” might …”
This is the whole point of dealing with the unknown.
It can be difficult to remember all the things that might be needed at the beginning of a project, especially if your risk log is empty. We have the answer! This article will discuss common project risks. It will help you to fill up your risk log and make the right plans.
What’s the risk again?
The PMI definition for risk is:
“An uncertain event or condition that, depending on its outcome, can have a positive or detrimental effect on the project’s objectives.”
Yes, risks can be good things. However, stakeholders are more concerned about what could go wrong. Project managers tend to focus more on the negative.
Or maybe we are all pessimists.
Although the causes of risk can vary from project to project, a project manager can add value by identifying them. It is our responsibility to facilitate the discussion and extract the risks so that they can be managed actively: that’s risk management.
It is helpful to think about risks in terms of categories. Below you will see a variety of risks so you can identify them in your own projects. The type of project you are working on will impact the types of risks you see. So pick and choose, and don’t consider the below a complete list. Use your professional judgment to add the other items you need.
Internal risks
There are many types of risk, with the most common being internal and external.
Internal risks can occur within an organization. You may be able to have a greater impact on internal risks if you take the appropriate actions early.
Here are some examples of internal risks:
1. Insufficient support
Lack of support from a key sponsor is a common risk. Sponsors might stop attending meetings or show little interest in the project’s success as the excitement fades.
It is best to immediately share your concerns if you notice this behavior. You may not be aware of the potential impact on your project. Be prepared to explain why you support them.
A lack of support can mean missing a deadline or more than one, as well as spending your precious hours on something the company doesn’t value.
2. Manufacture shortage
This could be due either to a lower staffing level or to other projects being staffed due to higher business priorities. When planning a project pay attention to the flow of staffing levels from beginning to end.
You should let the company know if you feel there is a shortage of staffing during certain periods.
3. Not well understood requirements
A project manager and his team must be able to understand the details of the product and what is required for delivery to ensure success. Inconsistency or lack of clarity about the requirements can lead to project failure and quality problems.
Uncontrolled change can also cause problems with your requirements. Make sure you write that down on the log!
Make sure you speak up, and then take the time and guide the project team members and stakeholders through the decision-making process.
Common measures to mitigate internal risk include making sure you have enough time for all stakeholders to be involved and to get the support they need. A business case should also be presented for the project.
External risks
External risks can be caused by a variety factors, many of which are beyond our control.
External risk examples:
4. Customer Misalignment
There are always possibilities
