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 scope, budget, or schedule).

As a project manager or a stakeholder on a company endeavor, risk is the one thing you must search and destroy as soon as possible and maintain that attitude throughout the project life cycle as the consequences of not understanding these risks can certainly doom all good intentions on any project.

HOW DO YOU GO ABOUT FINDING RISK?
As in life, risk is all around you.  You spend most of your life spotting a risk, attempting to understand the impact of that risk and then planning to mitigate the risk so your life remains a happy and fruitful one.  Given this thought you’re probably an expert by now!  The same method is used in project management but instead of strictly an intuitive mental approach you put your thoughts down on paper.

The search for risk should begin during the bid process (and throughout the execution phase) so you can identify the associated cost and impact then insure the bid covers this loss or moves the risk upstream to the customer or downstream to a subcontractor; thereby, reducing the liability to your company.

INTERNAL CRITICAL QUESTIONS
There are internal and external factors to risk that can affect scope, budget or schedule which I like to call environmental risk factors.  Take a look at the following questions:

• For internal risks one might examine if you have the proper people with the proper skill sets?
• After profit, will leadership provide you with enough funding to accomplish all the execution goals and risk mitigations?
• Do you have the right corporate processes in place to complete all the planned tasks?
• Do you have the necessary facility space, materials and test equipment?
• Do you have doubtful stakeholders that may become project detractors?
• Do you really have the technology now that is needed to be successful or are you dependent on a technology in the making?

These are only a few questions to ask but I think you get the idea.

EXTERNAL CRITICAL QUESTIONS
For external risks, examine all your subcontractors for weak areas such as on time delivery, over runs, poor communication or poor quality.

• If you are relying on outside technology ask if it is a standard, proven effective, safe, stable and be available when you need it?
• Are there upcoming government regulations that may affect the build, use and delivery of your product?

Additionally, be sure you customer is fully engaged and on board with your company and your project.

DON’T FORGET TO INCLUDE YOUR TEAM!
Always remember, as a project manager you own the project but the team makes it successful!  Set a meeting on a regular scheduled basis to review and discuss all risk to the project and do this early on in the project execution phase.

Your team has a vast amount of experience from which you can find plenty of risk so challenge them to think of ALL environmental risks in terms of scope, schedule or budget and be sure to capture everyone’s thoughts into what I call a Risk Watch List.  Later, you will use the risk watch list to assess the impact, set the priority of importance to mitigate and move the most important risks to your Risk Register for reporting to leadership and stakeholders.  Protect your team.  Don’t let an unplanned or unexpected event sneak up on your team by going in search of risk!

Bio:

Frank Harris is a PMI certified Project Management Professional, PMP, with over 8 years management experience as a strategic member of corporate leadership teams in Defense related industries.  He obtained a Bachelor of Science in Electrical Engineering from the University of Texas at Arlington in 1989 and honorably served for six years in the U.S. Navy as an Electronics Technician.  Using his technical background in product development, manufacturing, process control, quality standards and business acquisition, Frank has been at the forefront of each company that he worked to become a positive impact for their respective market.  Using these unique skills, Frank moved from engineering and into becoming a successful Project Manager with a ‘big picture’ view obtaining his PMP certification in 2012.  To know more about Frank, you can follow him on LinkedIn at www.linkedin.com/pub/frank-harris-pmp/10/2b7/997