Comments on: Why Manage Risks Formally? http://www.pmhut.com/why-manage-risks-formally Fri, 25 May 2012 03:54:48 +0000 http://wordpress.org/?v=abc hourly 1 By: Glen B. Alleman http://www.pmhut.com/why-manage-risks-formally/comment-page-1#comment-705 Glen B. Alleman Wed, 09 Jul 2008 14:35:11 +0000 http://www.pmhut.com/why-manage-risks-formally#comment-705 Karl, The tradeoff between "managing" the risk and not manageing the risk - from a cost perspective needs some clarification. Not spending money is the risk management choice of "ignore." The trade space for that decision is actually in the risk management guidelines. While it may be zero cost in terms of mitigation or retirement, the conseqential cost is not zero - as you state. I'd suggest the first example of subcontractor deliveries is easily mitigated with fine controlled deliverables management rather than multiple vendors - which woudl increase the risk, since managing each is now required, along with confusion in requirements and inconsistent deliverables. One approach built into the schedule is to include the "plan b" impacts at the point of occurance. As well retirement work can be inline as well. Including active risk management as part of project management is the current paradigm for projects with any substantial risk elements. "What you can't see won't hurt you" is not a strategy for success. Glen B. Alleman VP, Program Planning and Controls Defense and Space Lewis & Fowler, Denver Colorado Karl,
The tradeoff between “managing” the risk and not manageing the risk - from a cost perspective needs some clarification. Not spending money is the risk management choice of “ignore.” The trade space for that decision is actually in the risk management guidelines. While it may be zero cost in terms of mitigation or retirement, the conseqential cost is not zero - as you state.
I’d suggest the first example of subcontractor deliveries is easily mitigated with fine controlled deliverables management rather than multiple vendors - which woudl increase the risk, since managing each is now required, along with confusion in requirements and inconsistent deliverables.
One approach built into the schedule is to include the “plan b” impacts at the point of occurance. As well retirement work can be inline as well.
Including active risk management as part of project management is the current paradigm for projects with any substantial risk elements. “What you can’t see won’t hurt you” is not a strategy for success.

Glen B. Alleman
VP, Program Planning and Controls
Defense and Space
Lewis & Fowler, Denver Colorado

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