A Reflection on the Risk-Opportunity Phenomenon.

By Ayodele Akinola July 17, 2011

2 The Risk-Opportunity Phenomenon. and repugnant outcome. impairment. On the other hand. Some modern-day processes and standards demonstrate the probability of uncertainties to exhibit gainful consequences in the accomplishment of objective (Hillson. Risk occurs as a twofold scheme.Ayodele Akinola. Embarking on projects in the attainment of project objectives. However. 2005). 2002). damage. 2005). and can be either internal or external. translating to the actuality that threat does not occur devoid of opportunities. weakness. resulting to opportunities and threats (Hillson. The usual perspective on risk is negativity. 2003). . These negative forces appearing from nowhere necessitate circumvention or reduction. an amount of ambiguity is demonstrated as negative forces that may hinder the capability to accomplish objective. A fundamental challenge is the recognition and utilization of opportunities and trends. Explanations already encompass the dynamics as a constituent of the risk notion. the focus on risk management practice is extremely concentrated on risk management as threat. encompassing the implication of exact incidences and probability (Nummelin. Risk and its implications are embedded in uncertainty. MBA THE RISK-OPPORTUNITY PHENOMENON. revealing an inability to succeed. and the integration of opportunities to that common practice is perceived by some people as difficult (Nummelin. The contiguous characteristic of risk is uncertainty. and it can either be perceived beforehand or hidden (Nummelin. the typically identifiable project risk-management process fundamental to threats can obviously include opportunities. utilizing uncertainty in the portrayal of negative and positive features of risk. Opportunities occur as the clarification to the risks of over running schedule and going beyond budgets. The identification requires determined rationale and methodologies for a proactive management. 2005).

Project risk needs effective management to attain project goals and objectives. Hillson (2002) asserted that a synchronized methodology for managing threats and opportunities could establish a reduction in unwanted negative outcomes. The objective of opportunity management on projects is the contrivance of a general methodology for risk management. devoid of sufficient thoroughness on other important features of efficiency can be unsafe (Hillson. while concurrently making the best use of the likelihood of unexpected positive outcomes. . though vital. 3 Despite this supposition. An intense dependence on these attributes unaccompanied. time.Ayodele Akinola. without important features of accomplishments. and trainings by many organizations. Many establishment making use of risk management to deal with project uncertainties constantly encounter project failure in the attainment of cost. and the progression towards opportunity management remains thoughtless. The purposes of risk management in projects are recognized. is not adequate. An imperative constituent of a risk management process encompass evaluation. MBA THE RISK-OPPORTUNITY PHENOMENON. and intrinsic in the successful contribution to project completion. A variety of basic extension of the regular risk management process was configured in the affirmation that the same methodology can deal with both opportunities and threats. detection. Extant tools and processes of risk management appear to focus on the negative region of risk. and scope objectives. and response control. such that it is adept in the management of opportunities and threats. The solitary application of tools. An advantage in the simultaneous management of threats and opportunity is the similarity in status attainment. various applications of the risk process lay emphasis on the management of threat. 2003). The enthusiasm for the practicability is on the increase. particularly if the risk process would be expanded to comprise opportunities. techniques. in view of the fact that risk management is not producing the expected and definite gains. response development.

4 Demonstrable advantages in the expansion and inclusion of opportunity management is that the process of risk management will expand into an all-encompassing and recognized process. . in increasing the advantages. MBA THE RISK-OPPORTUNITY PHENOMENON. The adoption of extant utilized methodologies of risk management will be sufficient as an addition. project success.Ayodele Akinola. should new concepts are not initiated as a disconnection to the management of both threats and opportunities. costs. team synergism. stakeholder commitment and contingency management. to reduce additional operating cost and training.

ch/publication/journal/Pages/default. MBA THE RISK-OPPORTUNITY PHENOMENON. D.:Marcel Dekker Nummelin.Ayodele Akinola. References 5 Hillson. (2005).ipma.pdf . D.aspx Hillson. 235-236. (2002). 20(3). Retrieved from http://crgp. J.Y. (2003).edu/publications/conference_papers/Uncertainty_Management_Conc erning_Cultural_Dynamics_in_Project_Management. Retrieved from http://www. India. New Delhi. Paper presented at the 19th IPMA World Congress. Effective opportunity management for projects. International Journal of Project Management. Uncertainty management concerning cultural dynamics in project management.stanford. N. New York. Extending the risk process to manage opportunity.