Learning from Risk

So how far do you go with risk in projects? What’s important to know, what’s useful for the project team to understand, and how does your analysis of risk effect how others view your project?

I have completed risk registers recently for a couple of projects, one just starting in aviation maintenance, and one for a potential project supporting SMEs to develop collaborative skills. As project manager I am often left wondering why we complete these registers, and what benefit they actually have.  From a personal point of view I believe the exercise in identifying risk and suggesting mitigation factors is useful and sometimes eye opening, although it can be a struggle to get these risks acknowledged & addressed as the project progresses.

I am sure I am not the only project manager to encounter this!

It’s also difficult to see the causal links between ‘stuff’ that is happening in the outside world and the effect this ‘stuff’ could have on your project. For example, when looking at aviation maintenance, why would the price of oil effect the business viability of the solution we are working on with our technology partners? See AMROCCS page in Case Studies on this website…..

Well here’s the link: price of oil remains comparatively low = price of aviation fuel remains steady = cost savings of moving to modern, environmentally friendly aircraft are not clear = aircraft remain in service longer = older aircraft require more MRO = MRO companies are looking to find ways to increase profit by using modern tracking & visualisation technologies to capture & exploit data = AMROCCS market place nice and chunky……

or …… Oil price rises dramatically = large carriers increase speed of transition to modern aircraft = inbuilt technologies reduce need for external data capture = does AMROCCS have such an impact on market?

and then in the end ….. how real is this link and what is the likelihood and impact on the project as a whole.

I can tie myself up in knots with these chains of thinking. But I quite like the illustration (which I have creatively swiped from the internet) at the top of this post which simply shows where any project does not want to be – high impact, high likelihood. Now that’s where serious mitigation comes in…..

Mike

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