Working Up

by Dwayne Phillips

We review A fundamental of project planning, execution, and incurring risk.

Risk is the answer to the question, “What could possibly go wrong?”

The answer is, “Many things could go wrong.”

Some of the possible wrong, however, is avoidable. We can prepare better and ensure we do better. The key word in that statement is “we.” What, however, do we do when we aren’t involved?

In those cases, we incur risk.

Sometimes a project depends on the performance of an outsider—someone we neither control nor influence. If that person or group doesn’t perform, we lose. They may lose nothing while we lose everything. That could go wrong, that is risk.

How do we avoid that risk? Simple. We do everything ourselves, except when we can’t. Then we depend on outsiders. Maybe we can arrange a reward/punishment with the outsiders. That is influence. When we have no influence, well, that is risk, and that is bad.