How can you use risk escalation to manage risks?

1 What is risk escalation?

Risk escalation is the process of informing and involving the appropriate people or parties who have the authority, responsibility, or influence to deal with a risk that is beyond the control of the project team or the initial risk owner. Risk escalation can be proactive or reactive, depending on whether the risk is anticipated or realized. Risk escalation can also be formal or informal, depending on the communication channels and protocols used.

2 Why is risk escalation important?

Risk escalation is important because it helps to ensure that risks are addressed promptly and adequately by the right people or parties. Risk escalation can also help to avoid conflicts, confusion, or delays in risk management, as well as to increase transparency and accountability. By escalating risks, you can leverage the expertise, resources, or influence of higher authorities or stakeholders to mitigate, avoid, transfer, or accept the risk.

3 When should you escalate a risk?

It is important to escalate a risk when it surpasses predefined thresholds or criteria, such as probability, impact, urgency, or complexity. Additionally, if a decision or action is beyond your authority or capability, like changing the scope, budget, schedule, or quality of the project, you should escalate the risk. Moreover, if the risk affects higher authorities or stakeholders' interests, expectations, or objectives, it should be escalated. Lastly, when the risk has significant interdependencies or implications for other projects, programs, or portfolios, you should consider escalating the risk.

4 How should you escalate a risk?

Escalating a risk requires you to identify the appropriate person or party to escalate it to, based on their role, responsibility, or influence in the project or organization. You should then prepare a clear and concise risk escalation report that summarizes the risk, its causes, effects, and status, as well as the recommended risk response actions and their implications. It is important to communicate the risk escalation report in a timely and respectful manner, using the agreed communication channels and protocols. Furthermore, you should follow up and monitor the progress and outcome of the risk escalation, and provide feedback and updates to the project team and other relevant stakeholders.

5 What are the best practices for risk escalation?

When it comes to risk escalation, it's important to establish and communicate the criteria, process, and roles in the project charter, plan, or policy. It is essential to escalate risks as early as possible so that they don't become issues or crises. Additionally, one should be careful not to over-escalate or under-escalate risks as this may damage credibility or create confusion. It's also important to escalate risks in a constructive and collaborative manner while building trust and rapport with those involved. Lastly, it is essential to escalate risks in a consistent and transparent way while documenting and recording the process and outcome as well as the lessons learned.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?