Risk is an inherent part of any technical project and managing it effectively is crucial for its success. The RAID framework (Risks, Assumptions, Issues and Dependencies) is a proven and effective method to help identify and address potential risks. As the saying goes, forewarned is forearmed!
Risks
Risks can come in many different shapes and sizes. To manage them effectively it can help by ranking them by their likelihood of happening and their potential impact. Assessing the risks in this way will help you prioritise them. This gives you a quick and simple way to focus on the biggest risks first and work through them in turn. Remember, for every major risk that is mitigated the potential value of the business will increase.
Assumptions
Every project will have many underlying assumptions ranging from technical features to market dynamics. Unchallenged assumptions can be risky because they indicate a gap between thinking and knowing. Key assumptions need to be challenged, in a positive and constructive manner, to help reduce the risk of any misunderstandings that could potentially lead to missteps and rework.
Issues
During any project, there will be dozens, if not hundreds, of issues. Fortunately many of these issues are predictable ahead of time. During the project planning stage it is worth spending a few moments thinking about likely issues and how you would handle it. If the issue does happen then you’ll be ready for it. Faster real-time decision making will prevent minor issues from turning into major headaches.
Dependencies
No business or project team is an island. Every technical project will have dependencies from other companies and contractors. others. If these dependencies are not properly planned, they can become a major risk for the project’s success. Managing these dependencies is therefore an essential part of any complex project to ensure third parties clearly understand what they need to do and when they need to deliver it.
Assessing risk
One danger of assessing any risk is to understate it. We all tend to downplay risk, especially when fundraising or applying for grants. If a risk is misrepresented in the early stages of a project, it can be very difficult to change people’s perception about it later. When a perceived minor risk becomes a major one, it can be difficult to explain to stakeholders why the risk escalated so quickly and why there isn’t an appropriate mitigation in place.
Risk Register
Once all the risks, assumptions, issues and dependencies have been identified, it is good practice to maintain a log or register of them all. There are various templates you can download for free on the internet. A risk register can summarise all known risks, their probability, impact and – most importantly – the proposed mitigation. This file can be shared with key stakeholders to show that the business is proactively managing the risks.
