Updated 3/25/24
The most important value we offer clients is identifying and communicating risks as the project progresses. Our customers welcome our transparent and frequent communications during a project. Below are some of the questions we use to assess and monitor project risk. Once a risk is identified, we start to work on plans to deal with them.
Risk Identification and Assessment:
Where do risks come from?
What makes them significant or minimal?
Is there a special skill set needed to work on this?
Answers to these questions vary with the team and the industry. In general, looking at the project from the top down and the bottom up can flush out most of the risk areas. An example of the top down would be to observe and identify work streams and how they need to interact with each other. An example of bottom up might be the review of targeted technologies for integration, their complexity and availability.
Sourcing Risks:
Identifying single-source components is essential for risk assessment. If a critical component has only one source, it can lead to supply chain disruptions. Mitigation could involve finding alternative suppliers or stockpiling. Questions to ask yourself or others.
Are there components that only have one source?
What are potential product failure modes for the product within lifetime and expected environmental conditions?
If the component(s) is/are not commonly used in the marketplace, ask yourself why hasn't this been done before?
Are materials and components for this project available through multiple channels? If not, how else can we mitigate risk? Can we substitute something for the component in a pinch?
Is the new project technology requirement sufficiently documented, so that a successor resource can seamlessly take over should the key inventor become incapacitated?
Market and Stakeholder Risks:
Ensuring market demand and pricing viability is essential. Market research and customer surveys can help in assessing this aspect.
Are there customers willing to pay your asking price for project result or product/service once it is available for sale?
What are the real and potential compliance, regulatory, environmental, and legislative issues on the horizon?
Have we identified all the stakeholders, and have we considered their needs and expectations?
What is the likelihood of the marketplace changing/evolving during the product development cycle? Is there a Plan B for this?
Team and Human-Related Risks:
Addressing human-related risks involves assessing team skills, communication, and dynamics. Building a cohesive team, providing necessary training, and fostering open communication can mitigate these risks. Some questions and points of interest follow.
After the product risks, the people are the key (mitigating human risks):
Do you have the right resource (skill set, quantity, etc.) internally, contracted?
Do you have a group of professionals or a team?
Are the project objectives and goals communicated and owned by all?
Is there trust, cohesion, and respect? How to build it?
Are individuals competing internally or bringing value?
Are the experts communicating clearly the risks? and heard?
Do we empower each "brain" and control all decisions from the top?
How do we create value out of positive confrontation of ideas?
Project Planning and Management Risks:
Proper documentation of schedule, technology and knowledge transfer processes is essential for continuity in case of key personnel or marketplace changes.
Is there sufficient funding to complete the project considering possible setbacks and delays?
What are the potential obstacles that we might face during the project, and how can we overcome them?
Have we considered all the dependencies and assumptions that we have made, and what are the risks associated with them?
What are the potential risks associated with the project timeline, budget, and scope, and how can we mitigate them?
Have we considered the impact of external factors, such as changes in the market, technology, or political landscape, on the project, and what are the risks associated with them?
Are there any potential conflicts or disagreements among team members, stakeholders, or partners that could impact the project, and how can we manage them?
Have we considered the potential risks associated with the project delivery method, such as outsourcing or offshoring, and how can we mitigate them?
How can we continuously monitor and assess the project risks throughout the project lifecycle, and what measures can we take to minimize their impact?
There are many risks involved in developing a new product. Some of the most common risks are technical, performance, cost, and supply chain risks. The above questions help us to monitor projects and identify risks. Once identified, we can create plans to deal with them.
Thanks to Alan Joughin, Joanne Moody, Aaron Joseph, Robert Hines, Bert Wank, Walt Maclay,
image source: 123rf.com/profile_joingate 9991730
