Issue or Risk? Any way to dintinguish them?

Last post 04-23-2008 3:27 PM by mchannigan. 4 replies.

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04-17-2007 3:49 PM

aguerra
Joined on 04-04-2007
Posts 1

Issue or Risk? Any way to dintinguish them?

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Hi,

I'm a new user of PPM6 and also I'm introducing PPM6 into the company wich I'm working for. Many members of my proyect are confused with the terms "Issue" and "Risk".

As far as I know an "Issue" is a present problem that needs inmediate attention in order to be solved and a "Risk" is an uncertain situation that could o not happen and if it happens could have a positive or negative impact to the project's goals.

I would appreciate if you could help me with some opinions in order to have an easy way to dintinguish a Risk from an Issue.

Thanks.

04-17-2007 8:04 PM In reply to

John Filicetti
Joined on 02-15-2006
Seattle, WA
Posts 706

Re: Issue or Risk? Any way to dintinguish them?

Creating a RAIDC Solution with PPM6.doc

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You have the right information on risks and issues. Many people will actually migrate a risk to an issue of the trigger even occurs and management or escalation needs to take place. I have place instructions to create a RAIDC (Risk, Action Item, Issues, Decisions, and Changes) solution in eProject utilizing the Issues application. It is the only application to show up on the Executive tab and by grouping the 5 types into one application, you can easily roll all items into a status report. You will find the instructions in the Files area or attached.

John F. Filicetti, PMP, MBA

04-11-2008 1:30 PM In reply to

Luke Davis
Joined on 04-11-2008
IL
Posts 1

Re: Issue or Risk? Any way to dintinguish them?

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The simplest explanation I've available is an Issue is something which is causing an obstacle right now. It's defined, it's measurable and it's having an impact at this moment. Task X can't be completed because of Issue Y.

A Risk is the opportunity for an obstacle to be achieved. Risks generally have mitigation plans to cover the “what if” scenarios. Once the "What if" is encountered, some people move the risk to issues, others mark them as a "realized" risk and attempt to execute the mitigation plan (if one was developed) Task X Might be impacted because of Risk Y, then again, it might not.

Put another way, an issue is an undocumented risk. Since it is not always cost effective to document every potential risk, generally only the big hitter risks w/ significant impact get documented. The other "Risks" become realized as issues. Lastly, An issue is something that the team members can not resolve on their own; generally because a business decision is needed and the team members do not have the power to make the business decision. Issues require involvement from PM and management

Luke A. Davis

Filed under: Best Practice

04-12-2008 4:24 PM In reply to

John Filicetti
Joined on 02-15-2006
Seattle, WA
Posts 706

Re: Issue or Risk? Any way to dintinguish them?

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I agree with Luke. A risk is a potential for something to happen and has a trigger event to watch for. If that event happens, you can manage as an issue or action item. A risk is something with the potential of happening. You may say we have the potential of labor problems if we can't get a contractor by the end of the design stage. The trigger is if you don't have the team named and your action will be to get involved at that time.

An Issue is something actively happening that needs to be managed and escalated at times to resolution. This issue can be stated as something you need to take action on such as budget or labor problems.

John F. Filicetti, PMP, MBA

04-23-2008 3:27 PM In reply to

mchannigan
Joined on 04-23-2008
New Zealand
Posts 1

Re: Issue or Risk? Any way to dintinguish them?

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All the information is correct as above. Another key point is that (significant) risks MUST have mitigation strategies and a mitigation owner / manager. Issues on the other hand also MUST have a due date for resolution (in addition to a mitigation strategy and owner). Issues must either be resolved or accepted by a specific date.

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