Risk Management: Upside Risk
The meaning of "risk" generates ongoing debate, with some experts questioning whether it must always have negative connotations. Typically, "risk" refers to the possibility of something uncertain going wrong, resulting in damage or loss. The common practice of risk management is to anticipate and prevent these sorts of threats before they occur, enabling businesses and projects to achieve their goals. However, concentrating solely on threats limits the potential benefits of your risk management process, as opportunities can also arise unexpectedly and can be highly advantageous.
An opportunity (sometimes called an "upside risk") is "an uncertainty that could have a positive effect" and is the opposite of a threat. You must consider both to manage risk effectively in your project or organization. Doing so allows you to take advantage of beneficial outcomes as well as avoid unfavorable ones. Many experts and organizations now recognize the value of this approach.
Understanding that opportunities are more than just the absence of threats is essential. Sometimes, good things happen for no apparent reason or without any connection to a threat. These "pure opportunities" should also be identified and pursued to help achieve objectives.
Let's consider a simple example of an upside risk. A common threat (or "downside risk") in a software development project is for a task to overrun its schedule. Typical response strategies include the allocation of additional resources or the de-prioritization of other tasks. Conversely, an "upside risk" might be that the task takes less time than planned. Response strategies could include using the newly freed-up resources to work on tasks previously pushed into phase 2.
Risk Register by ProjectBalm
Managing upside risk as well as downside risk is much easier with a suitable tool. This is one reason we created Risk Register by ProjectBalm.
Our goal was to automate best practice risk management techniques, and do so via an elegant, usable interface that works with you, and not against you. Risk Register will help you to identify, analyse, treat and monitor risks more easily and effectively than ever before.
If you are experienced at risk management, you will find in Risk Register a tool that works the way you want it to work. If you are new to risk management, our documentation and videos will take you through the whole risk management process, giving lots of useful examples.
Risk Register is fully compatible with risk management standards such as ISO 31000, and can also be used for governance, risk, and compliance (GRC) programs such as Sarbanes-Oxley and PCI. And, of course, Risk Register allows you to easily distinguish between opportunities and threats.
Over the last few years, we've grown to become the most popular risk management solution in the Jira marketplace and we are now an Atlassian Platinum Partner. Why not try out Risk Register by ProjectBalm for yourself?