Things will go wrong on every project. Funds arrive late, roads flood, a supplier raises prices, a key person falls ill. Good project staff are not people who avoid every problem; they are people who saw it coming and had a plan. Managing risk is listed in coordinator adverts and is part of every serious project plan.
Risk or issue?
- A risk is something that might happen and would affect the project. "Heavy rains might make the road to the site impassable in August."
- An issue is something that has already happened and needs action now. "The road is flooded and the drilling rig cannot reach the site."
You manage risks by preparing. You manage issues by acting. A risk that happens becomes an issue.
The risk register
A risk register is a table, usually a tab in your project spreadsheet, with these columns:
- Risk: written as a clear cause and effect. "If funds arrive late, then cooks will not be paid on time."
- Likelihood: how likely it is: low, medium or high (or 1 to 3).
- Impact: how badly it would hurt the project if it happened: low, medium or high (or 1 to 3).
- likelihood times impact, so you know which risks to watch most.