There are two categories of project risk:
Known risks comprise:
Unknown risks are the uncertainties and variations that surround every project. For example, an unplanned labour strike at one of your major subcontractor’s. Continue reading
Studies have shown that most project failures are due to poor management of known risks. The known risks are:
Scope
The contract statement of work (SOW) defines the project scope. The challenge to the project manager is to perform to the scope but not more and not less. Sometimes the scope is not fully defined or mis-understood creating a serious risk situation which may not be known until late in project. The project manager is responsible to ensure that the scope is clear to the project team, so everyone is on the same page. Continue reading
Financial planners would advise you that the key to a successful retirement are four cornerstones:
I would advise you that the four knowledge cornerstones of effective project risk management are key to a successful project. They are:
Based on my years of experience, the secret to effective Project Risk Management is what I call the four cornerstones: Project Management; Earned Value Management; Risk Management; and Subcontract Management. This paper explains why. Continue reading
A project with a poor risk management foundation is like a house with a fragile foundation. Eventually it will fail.
Why Should It Matter to You?
Knowledge and skills with the four cornerstones of risk management, dramatically increase the probability of you realizing project manager success. Conversely, a lack of knowledge will likely lead to poor project manager performance.