The Risk Statement: Bringing Clarity to Project Uncertainty.
The construction project manager, in the monthly project review meeting with the sponsor, announces that “there is a risk that we will encounter some weather challenges during this project.” The sponsor, genuinely intrigued by this statement asks the project manager to be more specific. “Well,” the project manager says, “any weather issues can delay the delivery our project.” The sponsor, wanting to understand what this really means to his project, presses on. “I understand that”, the sponsor responds, “however; I need to understand what extent this could impact our project.
In other words, what are the extremities of the weather impact? Are we talking about a normal rainstorm or are you meaning that we will encounter a monsoon of biblical proportions that will wash out our entire project? I really need to understand the overall likelihood and potential impact before I can take any relative action.” This exchange, though hypothetical, reflects a common scenario while managing risks in a project environment. Project practitioners may conduct risk management processes as part of the project life cycle; however, all too often team members do not adequately describe the nature of the risk.
Adding...