Do You Know The Difference Between Risks And Issues?
Risk and issue are two words?that are often confused when it comes to their usage. The word ‘risk’ is used in the sense of ‘chance’. On the other hand, the word ‘issue’ is used in the sense of ‘matter’.
Here is an example - We can’t complete the project on time because the water pumps needed won’t be available for another month! What can we do now?
This is a common type of situation for new project managers, who often ask themselves - is this a risk or an Issue?
A risk is an uncertain event. There exists a probability associated with any risk. An issue does not have this attribute.?If something has already happened that affects the project, then it is called an issue.?In the example above, we are certain that the water pumps we need will not be available when we need it.?This is an issue.?An example of a risk would be: “We may not be able to complete the project on time if the water pumps?do not arrive on time.”?In this case, we are not certain that we have a problem yet. Risk versus Issue can be treated as the same as Potentiality versus Actuality. To be a project risk, it must be something that might affect the cost, schedule, scope, or quality of the project.?
Being able to distinguish between them?is one of the hardest things for project managers to understand.?It causes problems because risks and issues are dealt with differently, and dealing with risks and issues uses a lot of a project team’s time and energy.?
Risks are documented when they are discovered, most being at the beginning of the project.?The probability and impact are assessed, and mitigation tasks are added to the project plan.?A contingency plan may be created to document what we plan to do should the risk occur.?These risks are monitored and updated as needed throughout the project.?Should they occur, they become issues.
领英推荐
Issues are problems that?the project team has to solve.?The actions that they can take might involve adding tasks to the plan, extending the schedule, or increasing the budget.?Issues are tracked and actions are taken until they are resolved and no longer affect the project. Handling risk and issues appropriately will help the Project team communicate more effectively.
Risk Management is Proactive, while Issue Management is Reactive.?
Want to learn more? Register for the next session of our online course Adaptive?Project Management and start building your project management skills.?Click on the link below to register.
International Consulting Leader ? G Group Founder ? Program/Project Management Leader ? Veteran ? Digital Nomad ? Former Big 4 ? PMI AI Infinity Council Member ? International Development Advisor ? Freelance | Fractional
1 年The negative connotation of "risks". In any enterprise it is necessary to be continuously proactive regarding a program's/project's associated risk management. Stakeholders often view "risks" as negative events that may have impact - and in some cases reluctant to call potential "risks". However, "risks" may also be "opportunities" to advance the program/project. For example, new application governance requirements may be adjudicated to not be required this eliminating the resource impact of becoming compliant with the requirement. When identifying and managing "risks" - consider both the potential negative and positive impacts.
Program Quality and Compliance Coordinator @ ActionAid Liberia
1 年This is a great piece. Thanks my mentor ??
M&E professional l Data management I Fitness I Mental health I Scholar in the school of life I Love to learn.
1 年Wow! Crystal clear distinction, thank you.