Have you considered using this two-letter conjunction "IF" in risk management? Let's look at how to use the power of If-Then risk statements. IF is a simple word that can open new doors to writing clear risk statements.
If-Then Risk Statements
Once you've identified your project risks, you must write opportunity and threat statements.
Write Opportunity Statements
Opportunities are events and conditions that, if they occur, positively impact your project objectives (e.g., schedule, scope, budget, quality). Here are examples of how you might start these risk statements:
- If you purchase ten or more computers from the XYZ vendor,
- If you add an additional developer to task ABC,
- If you use quick-drying cement,
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Write Threat Statements
Threats are events and conditions that, if they occur, negatively impact your project objectives. How might we start these statements? Here are some examples:
- If the electrical system is not installed per the specifications,
- If the developer does not perform their unit tests,
- If the key stakeholders are not involved in the requirements sessions,
- If a tornado strikes the home office during the next two weeks,
Things to Note About If-Then Statements
Just so you know, If-Then statements involve risks, future events, or conditions. These are things that may happen, good or bad.
Also, I'd like to point out that some of the If-Then statements involve personal responsibility. That is, we have control over these conditions or events. We choose whether or not to take advantage of these situations. For example, a developer decides whether or not to perform unit tests.
Other If-Then statements involve conditions that are beyond our control. For instance, we cannot dictate when a tornado will strike a location. It's crucial to have contingency plans or business continuity plans in place to mitigate these risks and ensure preparedness.
If [Event], Then [Consequences].
Then Results
Then. The result is predictable. We describe the consequences or impacts.
- If you add an additional developer to task ABC, then the task will be completed one week earlier.
- If the electrical system is not installed per the specifications, then there will be additional costs and an adverse impact on the schedule.
If-Then vs. Cause-Risk-Impact Risk Statements
So, how does the If-Then statement compare to the Cause-Risk-Impact statement? Cause-risk-impact statements include causes and facts that give rise to risks. This information helps people better understand the cause and effect of risks. It also helps us better manage the causes and resulting risks in the future.
Your Turn to Write Clear Risk Statements
If I were to audit your risk registers, what would I find? Are your risk statements easy to understand? Take some time to review and refine your risk statements. One way to improve clarity is using the If/Then metalanguage: If [Event], Then [Consequences].
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