RIAC – Cycle of Uncertainty

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!
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