Chapter 13. Preventing Problems: Identifying and Managing Risk

Goals of This Chapter

Upon completion of this chapter, you should be able to: Explain the process of risk management Define and explain how to establish reserves Develop a risk management plan as part of project planning

A project manager was excited to be working on one of the most important projects in the company. Partway through the project, a supplier to the project suffered a shutdown of one of their main facilities, thereby delaying shipment to many of their clients. That project manager was leaving work that day when one of his company’s senior managers stopped him and said, “How can you be leaving work on time when we have such a major problem to deal with? Shouldn’t you be holding some kind of troubleshooting meeting?” The project manager said, “No need; we already have a plan in place for just such an occurrence. No meeting is required. The shutdown will only affect our project slightly.”