Based on my experience with project managers, it seems that most are Risk Tolerant. This is based on the fact that very little effort is put into planning and analyzing risks. These classifications are easy to identify with because of the people I have worked with on project teams. Some people are too focused on the unknown and seek out risky solutions, while others are more pragmatic (Risk Seeker). Others are conservative to the point that they seem cynical (Risk Avoider). The goal is Risk Neutral. Although I would say that I am more of a Risk Seeker, the knowledge and experience that I’m gaining is pointing me more towards Risk Neutral. I am able to see uncertainty through formal SWOT analysis, which allows me to examine my exuberant optimism. This episode is available on The Project Management Podcast.
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Risk Happens Guest post from Mike Clayton Why Every Project Manager Needs to Understand Risk Project Management is a discipline that was born out of necessity. We wouldn’t need separate tools and processes if projects weren?t so difficult. We need them because we have to make changes within constraints like budget, schedule, and performance. As a project manager, your job is to plan and define your project with care. Gather all data, then use your knowledge, expertise, and reasoning to create a plan. Planning Fallacy Daniel Kahneman, Amos Tversky called it “planning fallacy”. The belief that you can meet a deadline. Even if you have a history of over-runs. A plan that is not well-thought out is almost as bad as one that isn’t. President Eisenhower Shift: Plans are useless, but planning is everything. What happens when things go wrong? The universe doesn’t care about your plans. Risk Management is a second discipline. Project management is deeply intertwined? Risk Management is a result of the same necessity. Risk can be defined as uncertainty that can impact outcomes. This definition includes the two main components of risk: uncertainty and impact. These can be measured in many ways, such as financial, reputational, schedule, reputational or the level of disruption to your projects. There are many reasons uncertainty can occur. Here are seven of the most frequent: Uncategorized
Risk Management in the Snow There was a lot of snow during the Christmas holiday. It was a lot. This is NOT the vehicle that I drove around in. We couldn’t make it to my in-laws for their birthday celebration and Christmas presents for my 3 spoiled boys, so we stayed the night. It was getting worse and there weren’t any snow plows until the next day. I would not have driven back Saturday afternoon, but Snickers had to be taken care of. I decided to venture out, leaving my family warm and safe. THEN IT HAPPENED. It didn’t happen. I was not fooling you! I began to think about the increased risk in my environment. It was a risky situation, and I began to see it through the eyes of a project manager who has always taken risk management seriously. Data Uncategorized