A Risk is an “uncertain event or condition” that if it occurs, has a positive or negative impact on a project’s objectives. A risk therefore, must be effectively managed (Risk Management) to minimise risk impact to ensure successful delivery.
A risk that has eventuated is an “Issue” and measures taken to address an issue are “Actions”. These actions may consequently prompt a “Project Change” to resolve the issue – but keep in mind that implementation of project Change could introduce new risks or issues to the project!
What should we do about RIAC?
A structured approach to Risk Management will help manage RIAC Cycle.
- Commence Risk Planning early in the project.
- Build a “Risk Management Plan” during the planning phase and create a “Risk Register”.
- Consider both “Threats” and “Opportunities”.
- Prioritise identified risks using Risk Probability Impact Matrix (PI Matrix).
- Develop a “Risk Response Plan” for both positive and negative risks. Select appropriate response strategy for each risk e.g. Avoid, Mitigate, Accept, Transfer, Share, Exploit, Enhance, etc.
- Monitor and track risks, issues and actions throughout the project lifecycle. Remember RIAC Cycle is a continuous process!
- Maintain risk register to reflect accurate status of risks at all times.
- Maintain Issues log. Regularly review log with team
- Use a “Project Change Management” process to identify, assess and manage a project change
- “Communicate” with management. Provide them with information to make informed decision on risks, issues and changes.
- Manage stakeholder expectations!