Is there a benefit to executing a project risk assessment early and repeating it often? The definitive answer is yes! Developing and executing a risk assessment early in a project reduces the risk of dealing with project threats and opportunities in an unprepared and chaotic fashion when they do occur. Awareness of time, cost, and/or scope risk impacts on a project is crucial. Understanding the extent to which risk affects a project in a planned and coordinated effort improves the probability of successfully completing a project on time and within budget.
It comes as no surprise that the majority of projects fail their estimates to complete as most projects do not execute risk assessments early and often. While other issues may impact a project and lead to failure in addition to omitting proper risk assessments, the inability to manage risk through constant risk assessments is a pivotal reason for failure.
This paper will focus on a process that assists the project team in avoiding the continuous failure of completing a project on time, on budget, and within scope because of a lack of proper risk management. If will also provide suggestions to help avoid risk pitfalls by executing risk assessments in a continuous and consistent pace, not only when the risk arises, but from the beginning of the project through closeout.
The objective of this paper is to encourage project teams to take the appropriate time and effort to assess project risks with the goal of providing an organized and practical approach to project risks and opportunities.
By: Francisco Cruz Moreno, PE and Gino Napuri, EVP
2022 AACE® INTERNATIONAL TECHNICAL PAPER