pm-lotus by Howard Vaughan

Its always amazing how small things can make a big difference in the world of project management. Consider the describing of a risk:

The Wrong Way

Oftentimes we see a ‘shorthand’ approach used – for example, a risk captured simply as “Insufficient resources”. The danger (the risk?) of such a brief description is that it creates three problems:

• We misinterpret what exactly was meant (Which resources? On which tasks? With what consequences?)
• We may not correctly assess the risk’s importance because of the description’s ambiguity
• We can’t remember what we meant when we revisit the risk log at a later date

For these reasons, it makes good sense to describe a risk in a way that clearly states the possible situation and its effect.

The Right Way

A recommended approach is to write a risk like this:

EVENT may occur WHEN, thereby causing IMPACT

So rather than a bland, ambiguous risk statement such as “Lack of training”, we drill down and explain clearly what is meant – maybe:

“Competing work commitments may prevent staff attending the training, thereby slowing adoption of the enhanced project planning process.”

Now its clear. We understand both the effect and its root cause. Clear statements of what we really have in mind when we identify risks promotes consensus in (1) understanding the risk, (2) assessing its importance, and (3) generates more creative thinking in the development of risk responses. A little extra effort for a big benefit.