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Risk Management: No Such Thing as a Risk-Free Project

Risk is everywhere - in our domestic lives, our social situations, and particularly in our business activities. Some vendors guarantee "risk-free" projects, but this is invariably a false promise. All projects carry risk, and following are some of the reasons why:

  1. Uniqueness: Each project stands alone in its essence, with tasks and activities that often haven't been tackled before. This novelty inevitably breeds uncertainty, translating into project risk.
  2. Complexity: Projects have multifaceted dimensions, from technical to commercial and relational aspects. The interaction of these components can lead to unexpected complications, thereby escalating the risk quotient.
  3. Assumptions: Project management involves making educated predictions about future circumstances. Since we don't have perfect knowledge about the future, these assumptions necessarily carry risk.
  4. Fixed Objectives: Rigid project goals are common and sometimes conflict with each other ("we want this product delivered quickly and also to the very highest standard"). The pressure to achieve specific, sometimes competing targets will amplify the risk.
  5. Human Factor: The unpredictable nature of the people involved in a project can add to the risk. The diversity in personality traits and decision-making approaches often creates unforeseen problems.
  6. Environmental Changes: The internal and external environments in which projects operate can shift unexpectedly. These changes can introduce unforeseen risks that are difficult to predict and manage.
  7. Resource Availability: Projects heavily depend on resources like staffing, materials, equipment, and finances. These can shift due to factors outside the project manager's control, meaning they all carry risk.
  8. Regulatory Changes: Shifts in local, national, or international laws and regulations can introduce new risk elements during the project's life cycle.
  9. Market Volatility: Market changes like fluctuating consumer demand, economic downturns, or heightened competition can pose substantial risks, especially for market-sensitive projects.
  10. Technological Uncertainty: Rapid technological shifts or unpredictability of new technology performance can become a significant risk factor, particularly in tech-focused projects.

The idea of a risk-free project is a fallacy. Every project, regardless of its scale or sector, carries some risk. The key to successful project management lies not in completely avoiding risk but in adeptly managing it as and when it arises.

Risk Register by ProjectBalm

All projects carry risk and therefore all projects need risk management. 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.

ops and risks.PNG

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?

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