Much has been written about the use of the terms “risks” and “opportunities” with respect to the process that PMI refers to as “Manage Risk.” A recent thread on the subject of the terms on LinkedIn has drawn over 100 responses debating their meaning and usage, dissecting them in detail and resolving little. For the purposes of this post, let’s agree to refer to outcomes of planned project activities as uncertainties.
In the PMI PMBOK guide, Risk is defined as always in the future and is an uncertain event or condition that, if it occurs, has an effect on at least one project objective (usually in the area of budget, schedule or quality).
Risk is the scourge of project management as it is the only ‘unplanned’ event that the project team must try to first, identify, and secondly, determine the effect of this uncertainty on the overall project or organizational goals then thirdly, attempt a strategy to minimize the impact. Risk is managed throughout the project life cycle and each risk is placed into the project Risk Register. (See below example of Risk Register)
What’s a black box?
“A self-contained unit in an electronic or computer system whose circuitry need not be known to understand its function.”
Black boxes have become more and more prevalent. And that modern man depends more and more on them is all too evident. Whatever device or product we buy, each has its own instructions for use, from the simplest to the more complex ones.
Organizational Sustainability implies the capability of addressing with agility internal and external organizational challenges and maximizing the advantages. This starts with assessing and continuously monitoring and addressing the overall operational context from both external and internal perspectives. Continue reading
In Against the Gods: The Remarkable Story of Risk, the author says the mastery of risk is the foundation of modern life and is what divides modern from ancient times. By consciously or unconsciously calculating probabilities, quality professionals make intelligent decisions about business processes.[i] First let’s look at a few definitions of risk. Continue reading