21
Nov
Risks Vs. Opportunities
What is Risk?
Risk is an uncertainty which could lead to an impact (positive or negative) to the project. When we mention uncertainty, it is related to probability. When the impact of the probable event is positive we call that as opportunity and when it turns negative, we term that traditionally as “Risk” (Negative impact).
Does it mean should we care about only negative impacts or Risks? As much as Risks are important to monitor to minimize the probability and impact, its equally important to maximize the opportunity and the impact of positive impact.
Risk à Reduce Probability à Reduce the impact
Opportunity à Increase the Probability à Maximize the impact
Example, we send the RFP (Request for Proposal) to our customer to get the deal which definitely is very uncertain to get the deal and make the profit out of that.
What are the threats?
Competitors are our threat who have same level of competency or more
What are the Risks and Opportunities?
commercially, if we spend money on developing prototype and the deal doesn’t materialize then it’s a loss to us. Hence developing prototype can be considered as Risk/Opportunity.
hence, we should try to maximize the probability to get the deal .
What are the Risks involved?
The Risks (Negative Impacts) as identified can be
Loss in profit
How to reduce the Negative Impact ?
Have alternate business plans
Credibility with employees
Have the backup plan for the resources
What are the Opportunities (positive Impact)?
High chances to get the deal as we have all things ready
Team motivation
How to increase the Positive Impact ?
Create a prototype
Resource Plan
People,
Software & Hardware
Have the ramp up plan ready and it will be easy to kick off the project on time
Learn more about Risk and Opportunities by visiting our Project Management certification courses http://goo.gl/fbuV2m
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