Risk Management

Why Do You Need a Strong Risk Statement?

A risk statement gives a clear picture of your teams’ problems during the project lifecycle. Without proper documentation in place, the team members would not be able to mitigate risks on time. Delayed responses can even derail your project, no matter how aligned it is to the strategic goals. In this article at Project Risk Coach, Harry Hall explains further why you need a strong statement.

Understanding Risk Statement

Anything that might halt the project is a risk. It can be conflicts between stakeholder interests or overlap in cross-functional resource work timings. These may or may not happen and have a degree of uncertainty in the event’s possibilities. What would you do in such situations? That is what you must be prepared for. Have three columns in the statement that would state the cause, risk, and impact. As they mature and happen eventually, they become issues or opportunities for your project.

How Do You State It?

Ask these questions before compiling the risk statement:

  • ‘Does the risk statement focus on uncertain events or conditions?
  • Are the causal factors clear?
  • Does the statement specify the impact(s)?
  • Does the risk statement drive clear response plans?’

Once you write down an initial draft, your answer to the questions mentioned above should be yes. If not, revise it.

When you first start the project, the response plan is vague because the risk statement is not specific. Revise your document regularly to chalk out strategies that can lead to better product development. Include the new risk that came in the picture and was not present when you initiated the project. Explain to the stakeholders how it can affect the development lifecycle. If necessary, have review reports of previous projects with similar risks. You must have some solutions up your sleeve before notifying it to the stakeholders.

To view the original article in full, visit the following link: https://projectriskcoach.com/how-to-improve-results-with-better-risk-statements/

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