Project Management For Dummies®

Chapter 8. Dealing with Risk and Uncertainty

In This Chapter

• Coming to terms with risk and risk management

• Checking risk factors more closely

• Evaluating the real costs of risks to your project

• Strategizing to stay on top of the risks

• Drafting a risk‐management plan

Your first step toward a successful project is to develop a plan to produce the desired results on time and within budget. If your project lasts a relatively short time and you're thorough and realistic in your planning, then most likely your project will be a success.

However, the larger, more complex, and longer your project is, the more likely some aspects won't work out as you envisioned. Remember, “The best laid plans . . ..” You have the greatest chance for success if you confront the possibility of changes head‐on and if you plan how to minimize the consequences of those changes from the outset.

This chapter discusses how to consider potential risks when you're deciding whether you'll undertake your project, when you're developing your project plan, and while you're performing your project's work. This chapter shows you how to identify and assess the impact of project risks, and it explores strategies for minimizing their consequences. Finally, this chapter gives pointers for preparing your own risk‐management plan.

Defining Risk and Risk Management

Risk is the possibility that you may not achieve your product, schedule, or resource targets because something unexpected occurs or something planned doesn't occur. All projects ...