In the previous section we talked about how to start talking about the risks. You take a certain aspect and think about it in terms of what you don't know or what might go different then expected. Even better, you do this exercise with some colleagues in a meeting. For every risk that you might come up, you have to specify the following items:

· Risk; A description of the actual risk. Example: Uncertainty availability programming resources.

· Impact (or consequence); The impact on the project (process or product) if the risk occurs. Example: Delay in construction interfaces.

· Possibility; The possibility that the risk occurs (use e.g. high/medium/low). Example: Medium

· Action; The action that can/will be taken to avoid the risk from happening or reduce the chance for it, or reduce the impact. Example: Get planning clear. Investigate possibility external programmers.

· Cost; What is the cost if the risk occurs (time and money). Example: Delay 3 weeks.

You have to review the list that is generated in this way periodically (once a week). If the list is too large to give all the risks your attention, you have to create some priorities. A nice way is to create every time a top ten of the most urgent risks, so you will be sure you focus on the more important ones.

There are a lot more things to say about the subject of risk management. But first of all it's a state of mind. And with the few things shown in the section, you have a good starting point to reach the state. Remember, risk is not a bad thing, and if you come up with an action to resolve it, execute it… don't just talk the talk, but walk the risk management.

This entry was posted on Tuesday, August 7th, 2007 at 11:56 am and is filed under Risk Management.