Risk Management by ROAMing

Effective risk management is critical to the success of any project. Poor risk management can have serious consequences, even if the project is not safety- or mission-critical, a lack of proper risk management can seriously derail even the best laid plans.

Once you identify and record a risk, you can:

• Resolve the risk and reduce the likelihood of it happening
• Take a different approach & Avoid the risk
• Share the risk by bringing in vendor expertise 
• Mitigate the risk and take action to reduce its impact
• Accept the risk

The importance of effectively, proactively identifying and managing risks cannot be overstated, but how can we manage the risks in simple, organized and effective way?

Risk ROAMing can help

Collaboration is an essential ingredient for effective risk management. Identifying potential risks is supported by the cumulative experience of the team members, and having all the risks in a single tool helps ensure total risk coverage.

ROAM model is a collaborative, lightweight risk management technique built on a visual, pull-based model. It helps teams to identify and deal with all potential risks adequately & appropriately.

ROAM is an acronym for Resolve, Own, Accept, and Mitigate.

• Resolved Risks: The team agrees that this risk is no longer an issue. No further action is required.
• Owned Risks: If a risk can not be immediately solved, a team member takes ownership of it to resolve later. This person is responsible for making sure that this risk is appropriately managed.
• Accepted Risks: Some risks cannot be resolved, so it must be accepted as-is and dealt with as necessary. The team should fully understand why before accepting these risks.
• Mitigated Risks: Risk is mitigated when we have a plan to eliminate the threat of the risk.

How can we create a ROAM Board?

One of the easiest method to create a ROAM board for risk identification and risk ROAMing is to use a Kanban board. As it is a pull system, it makes risks visible and easy to prioritize by the level of impact. ROAM board also shows aging, unresolved risks that need attention.

ROAM board can be created as shown in the picture below.

Summary

It is natural to fall into the trap of thinking that risks have inherently negative effects, however, the potential for a risk to have a positive or negative effect is an important concept. If you are also open to those risks that create positive impacts or opportunities, you can make your project smarter and more profitable. 

Managing risks is imperative in most product development projects and implementing a simple risk management model like ROAM to proactively manage risks can be a differentiator between success and failure not only for the project but also for an entire organization.