Managing risk

Your project might have more risks than you could handle.…So you have to decide which risks you're going to track and manage.…For the risks that are significant enough to plan for, you have to decide how…you will respond if the risk occurs.…To select the risks you're going to track and manage, you assess each risk…you've identified by asking two questions:…how likely is it that the risk will occur?…For example, construction projects almost always seem to be delayed, so the…likelihood of it occurring is high.…

The second question is how big is the impact if it does occur?…If the opening day for the new space is critical, the construction delay…would have a huge impact.…So the construction delay risk is definitely one you will plan for.…Ask the same people who helped you identify risks to help you assess their…probability and impact.…After you evaluate all the risks, the next step is to decide which ones you will manage.…If you categorize probability and impact using low, medium and high, you might…