Risk Management Risk: I

Risk plans are rarely perfect. For complex projects, unanticipated risk will almost certainly materialize. We can deal with this risk — I'll call it risk management risk — if we adopt some simple practices. Let's begin with some examples of organizational and political risks.

Organizational blind spots

Organizational risk management asset bases usually consist of previously developed risk plans and risk plan elements, documented risk plan development procedures, and personal experiences.

Although referring to these assets might uncover risks that any particular risk manager might not otherwise consider, relying on the asset base probably won't uncover risks not included there. Since continuous organizational change almost certainly exposes the organization to risks never before seen, these asset bases have blind spots.

To limit these blind spots, analyze the results of retrospectives to determine what risks were unanticipated. They provide clues to the location of the organization's blind spots.

Organizational political correctness

In general discourse, political correctness requires that we shape our statements and behavior — if not our opinions — to conform to a generally accepted ideological standard. Organizational political correctness provides an analogous constraint relative to the ideology and views of the organization.

Organizational Organizational political correctness
can limit the ability of risk managers
to address significant riskspolitical correctness can limit the ability of risk managers to address significant risks, when even discussing such risks calls into question organizational beliefs, or the beliefs of those who have internal political power.

If a common theme appears among unanticipated risks, if those risks are evident to many, and if the same risks materialize across many projects, organizational political correctness could be a cause. Organizational culture change is required to address this risk.

Political risk

The organizational value of any project is determined, in part, by the political clout of its advocates. How an organization values a project can present risks to it through resource allocation, schedule, and budget.

Although these risks are widely understood, talking about them openly and planning for them in writing is often difficult, for reasons far beyond organizational political correctness. For the politically weak project, committing to writing and review any plan to deal with political risks simply provides a roadmap to rival projects if they are politically stronger. Such a risk plan is often effectively countered before it can be implemented. In some cases, it might even be forbidden. This effect is especially pronounced if a state of toxic conflict persists between the departments, leaders, or champions of the two projects.

Two factors suggest the presence of political risk. First is the absence of any explicit mention of political risk from the risk plans of politically weak projects. A second indicator can be changes in the execution plan of politically stronger projects, especially following publication of the risk plan of a politically weaker project.

In Part II, we'll examine risk dynamics and risk interactions.   Next issue in this series   Top    Next Issue

Is every other day a tense, anxious, angry misery as you watch people around you, who couldn't even think their way through a game of Jacks, win at workplace politics and steal the credit and glory for just about everyone's best work including yours? Read 303 Secrets of Workplace Politics, filled with tips and techniques for succeeding in workplace politics. More info

Your comments are welcome

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

This article in its entirety was written by a human being. No machine intelligence was involved in any way.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Project Management:

The Injured Teammate: II

You're a team lead, and one of the team members is suddenly very ill or has been severely injured. How do you handle it? Here are some suggestions for breaking the news to the team.

Wishful Thinking and Perception: II

Continuing our exploration of causes of wishful thinking and what we can do about it, here's Part II of a little catalog of ways our preferences and wishes affect our perceptions.

The Risks of Too Many Projects: II

Although taking on too many projects risks defocusing the organization, the problems just begin there. Here are three more ways over-commitment causes organizations to waste resources or lose opportunities.

Vendor Mismanagement

When we outsource knowledge work to vendors, we expect to achieve the desired result with less risk and uncertainty than if we did the work ourselves. But mission creep, mission retrenchment and employee capture can lead to less welcome results.

Lessons Not Learned: II

The planning fallacy is a cognitive bias that causes us to underestimate the cost and effort involved in projects large and small. Efforts to limit its effects are more effective when they're guided by interactions with other cognitive biases.

See also Project Management for more related articles.

Forthcoming issues of Point Lookout

Coming July 23: Microdelegation

Microdelegation is a style of delegation in which the delegator unintentionally communicates the task to the subordinate in such detail and so repetitively that the subordinate is offended. As a result of this delegation style, many subordinates feel distrusted or suspected of fraud or goldbricking. Available here and by RSS on July 23.

And on July 30: What the Dunning-Kruger Effect Actually Is

Although the Dunning-Kruger Effect is widely recognized, people describe it — and understand it — in many different ways. Some of these expressions are misleading. Proceed with caution. Available here and by RSS on July 30.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenaXXxGCwVgbgLZDuRner@ChacDjdMAATPdDNJnrSwoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

• Get 2001-2 in Geese Don't Land on Twigs (PDF, )
• Get 2003-4 in Why Dogs Wag (PDF, )
• Get 2005-6 in Loopy Things We Do (PDF, )
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
• Get 2009-10 in The Questions Not Asked (PDF, )
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info