MGMT8370 RISK & ISSUE MANAGEMENT

WEEK 2: PART 1 ISSUES VS RISKS & ISSUE LOGS

PROFESSOR LISA POLLARD
AGENDA
• Review
• Issues vs. Risks Part 1
• Issue Management
• Decision Making
• Problem Solving Process
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LEARNING OUTCOMES
7.1 Discuss the importance of effectively identifying and
solving project issues.
7.2 Solve project issues using a structured problem-solving
process:
7.2.1 Define the problem
7.2.2 Define evaluation criteria
7.2.3 Generate alternatives
7.2.4 Evaluate and select alternative(s)
7.2.5 Implement solution(s)
RISK RECAP

1. What is a risk?

2. What is risk management?

3. Why do risk management?

4
 Project • Does the risk warrant pursuing this
Selection project?

Planning • Time allocated to identify risks

Project • Continually scan the environment WHEN DOES RISK

Lifecycle for new risks
IDENTIFICATION AND
Monitoring ANALYSIS OCCUR
• Continually evaluate risks and
and Risk management is continous
watch for triggers
Controlling

5
WHAT IS AN ISSUE?

A current condition or situation that may have

an impact on the project objectives

PMBOK® 6th Edition Page 709

MORE ABOUT ISSUES

Issues • Problems, gaps, conflicts

Impact • Significant if unresolved

Risks • Unidentified
RISK VS ISSUE

• Uncertain
• Event has
event or Risk Issue occurred
condition

• Plan for
• Create a
possible Proactive Reactive workaround
outcomes
RISK VS ISSUE
• Project or • Project or
Risk Issue Product
Product
Deliverables Impacts Impacts Deliverables

• Greater than 0%
and less than Probability Probability • Must be 100%
100%

• Must be in the
future
Timing Timing • Typically now
 Avoid
Transfer
Risk

Mitigate RISKS OFFER

OPTIONS
Evaluate probability and impact to

Accept
determine priority
Create contingency and fallback plans
 Avoid
Transfer
Issues

Mitigate ISSUES ALLOW

FEWER OPTIONS
Issues are 100% probability meaning

Accept?
impact must be determined
Possibly Accept
Workaround solutions are typically
required
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THINK ABOUT IT

Not all Issues are Risks but

All Risks are Issues
EXAMPLE: RISK VS ISSUE
RISK: PROACTIVE
▪ Typically advanced insight
there is a cause for concern.
For example
• The project is unable to find
qualified staff
ISSUE: REACTIVE
▪ Typically less predictable – can
arise without warning
For example
▪ A project resources is in a car
accident, and hospitalized for
three weeks
DOCUMENTING ISSUES

1. Where are issues recorded?

2. Why do we manage issues?

3. Are you able to generate 7 reasons to
manage issues?

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 ISSUES LOG – EXAMPLE TEMPLATE
ID Description Priority Assigned Target Action Plan / Status Final Solution
(H/M/L) To Date Actions Taken

1 Details on what Pre- The person Date Describe and track the Based on Brief summary of
happened and the defined responsible actions taken and pre-defined resolution.
potential impact to criteria planned. Including the standards
project objectives similar to dates as status is
*Summary risk collected is important
*Background
*Details
*Impact
2 The cabinet maker High Frank April 3/20 Mar 29: Issue identified Open TBD
delivered the white Mar 30: Contacted Investigating
cabinets instead of grey cabinet maker to
for the custom kitchen. determine delivery date.
The change order was Mar 30: Advised
not processed correctly. customer service of new
Ordering new cabinets issue
at this late date may Apr 1: Receive response
delay the house closing from cabinet maker on
date
ISSUES LOG – (SUBSET)
Issue Description Priority Assigned Target Action Plan / Status Final Solution
ID (H/M/L) To Date Actions Taken

Priority
Establish the priority based on evaluating the impact, typically organizations use a
high, medium and low categorization
Status
Track the progress of the issue resolution including overall status
• Open – issue has been identified but no action has been taken
• Investigating – issue, and possible solutions, are being investigated
• Implementing – issue resolution is in process
• Escalated – issue has been raised to management / project sponsor and
directions or approval of a solution is pending
• Closed – issue is resolved
ISSUES LOG BENEFITS
Documented history of issues

Method of communication

System to maintain status

Facilitate the issues management process

Capture priority

Promote ownership and accountability

Collateral for lessons learned

DECISION LEVELS

Source: Text Book Page 44 Table 15.1 Decision levels Copyright © 2013 McGraw-Hill Education (Australia) Pty Ltd.
THREE CATEGORIES OF ISSUES/PROBLEMS

Deviation Improvement Open-ended

Problems Problems Problems
• Your business • Your business • Problems
or project is is doing okay that don’t
falling short but you want have an
of its to do better apparent
expected
targets
SUMMARY
• Review or risk basics
• Introduction to issue
• Compared issues and risks
• Introduction to the Issue Log
• Introduction to decision levels and
categories of problem