Risk management is essential for any significant project. and is useful for any project where an unfavorable outcome is undesirable. Certain information about key project cost, performance, and schedule attributes are often unknown until the project is underway. The emerging risks that can be identified early in the project that impact the project later, are often termed “known unknowns.” These risks can be mitigated with a good risk management process. For risks that are beyond the vision of the project team a properly implemented risk management process can also rapidly quantify the risks impact and provide sound plans for mitigating its affect.
This presentation surveys the essentials of programmatic risk management with five easy to remember ideas:
§ Hope is not a strategy
§ No point estimate of cost or schedule can be correct
§ Without integrating cost, schedule and technical performance the project manager is driving in the rear view mirror
§ Without a model for risk management the project manager is driving in the dark with the lights off
§ Risk communication is everything in risk management
