| |
Home
Who We Are
Our Services
Our Clients
Courses Available
Papers / Presentations
Risk Management Humor
Contact Us
Risk Management: A Brief Tutorial
What Is Risk?
Risk Mitigation
Contingency Planning
Risk Management
Common Problems
Case Studies
Risk in Government Proposals
Schedule Risk: Why CPM Doesn't Work
Risk Analysis in Capital Budgeting Decisions
|
|
The Problem With Risk Management:
Systemic Difficulties
Several difficulties in risk management can—indeed, do—occur regularly at many firms. Program management is encouraged to study this list, to evaluate their teams in these areas, and to develop methods to correct shortcomings where they are identified:
-
Difficulty distinguishing risks from problems.
-
Difficulty distinguishing normal business practices from risk mitigation / contingency planning.
-
Difficulty distinguishing between certain future events and uncertain future events.
-
Difficulty envisioning potential future (risky) events.
-
Reluctance to mitigate risks—to buy insurance.
-
Excessive optimism.
-
Lack of systematic risk identification, risk assessment, risk handling, and risk monitoring procedures.
-
The view that risk management activities take time away from doing “real work”. |
|
|
 |