Why Manage Risk?

In simple terms Risk Management reduces the likelihood of project failure, be it financial, schedule or performance based.

It is widely recognized that strategic, project and operational failures are all too common:
    – Only 28% of IT projects deliver on time and on budget.  More than 25% fail to deliver at all (source - PMI Risk symposium 2005)
    – Some make headlines (Wembley Stadium, Denver International Airport, Heathrow Terminal 5 etc), many more are quickly forgotten.

According to the Project Management Institute, projects with a sound risk process can expect a 15% higher success rate than standard projects.
    – 17% increase in cost efficiency
    – 15% increase in schedule efficiency
    – A single averted risk can pay for all risk management activity for that project

By identifying and managing risks today, Project Managers can plan well ahead of the problem occurrence.

Any organization that effectively manages risk will experience significant benefits throughout a number of areas, including:

    •  Improved strategic and business planning
    •  More effective use of resources
    •  Increased ability to deliver on time
    •  Reduced costs by limiting legal action or preventing breakages
    •  Improved reliability leading to an enhanced reputation
    •  An ability to quickly grasp new opportunities
    •  Fewer breakdowns, fewer shocks and fewer unwelcome surprises
    •  Enhanced communication between Business Units and Departments
    •  The ability to reassure key stakeholders throughout the organization
    •  The promotion of continuous improvement, leading to higher quality of output
    •  A more focussed internal audit programme
    •  Robust contingency planning

In simple terms, objectives are more likely to be achieved and damaging things will not happen or are less likely to happen.

Click here to Read More about ways to reduce your risk exposure »