This video provides you with considerations to review when contemplating if a risk response action should be taken on your project.
- Author Mandy Hale has said, "Pick your battles. "You don't have to show up "for every argument you're invited to." So it goes with project risk responses. Executing every risk response action all the time will drive everyone crazy and take up precious time and money. Project managers who understand when to execute a risk response and when to hold off are the most effective when managing their projects. There are three ways to approach the execution of your risk response actions.
The first is to execute proactively. For example, in a component design and assembly project, you may believe there's a risk in making a telephone component out of fiberglass because you may need a solution that's going to be more rigid. So using steel to make the component has been proposed as a response action. You can address this risk proactively by spending the money and time to have sample fiberglass components manufactured ahead of time. From these samples, you can determine if the rigidity risk is likely to occur.
Basically, you're trying to balance your triple constrains, time, scope, and cost. Being proactive and doing something ahead of time typically gives you the best result when it comes to risk management. But it can have drawbacks in costs and potentially time. Second, use an assess and respond approach. You test the fiberglass parts at the prescribed time in your schedule and then you decide on the immediate actions to take based on the results.
If the fiberglass works well, you don't spend any money on a response action you don't need. If the risk is valid and the fiberglass is too flexible, you spend the money to correct situation by using steel. Going down this assess and respond route could cost you nothing if it works. But if the result isn't the level of quality you need, you could incur triple constraint impacts when you least need those challenges. Consider your options carefully.
The third option is to be reactive, you change something after the impact of the risk has been felt. If the fiberglass isn't acceptable once you deploy it, then you correct it after installation. This will probably involve some additional testing processes and coming up with something like reinforcing the fiberglass part. It can also upset your client and your reputation. In this case, we've let the risk pan out and then reacted to it. This is not typically a good option, but can be considered for very low probability or low-cost risks.
Whatever the case, it pays to analyze your risk before deciding which way to execute your response to maintain the integrity of your project. Assess the impact of the risk. Look at how much control you need to put in place and when to get the optimal risk management result. And share your thoughts with your stakeholders so you don't trigger stakeholder risks and arguments.
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Explore why dealing with risks needs to be part of the everyday process used to manage a project.
- Learn to outline the most common, pragmatic approaches to identifying risks specific to a project.
- Recall methods for qualifying and quantifying your risks to determine specific risks and manage their costs.
- Examine the primary considerations for a project risk plan and what components should be included in every plan.
- Assess techniques that help you identify the overall risk a project presents to your business.
- Examine several risk analysis and filtering examples that help ensure you've addressed individual risks properly on your project.