If you've planned a road trip, then you understand corporate project risk.
Before your project or car heads off a cliff, you (1) need access to reliable, up-to-date information about the road and traffic conditions before heading out. Your driving decision-making process is (2) supported by rules and regulations (turn signals and not texting while driving), which I am 100% sure you follow 100% of the time! (3) A risk analysis and evaluation framework supports a risk management process.
Unless you own a Tesla, (4) you constantly monitor your surroundings while driving, and you must have processes to monitor risks continuously. And it's best if you find the right balance of control when driving - not too reckless, not too cautious - you (5) need to find the right balance of control when dealing with risks in a project. This means having the proper risk tolerance, or "risk appetite."
Your Google maps route tracker is your trip information, akin to (6) a risk log or register. And if an in-route traffic jam is ahead, you (7) address interdependent risks on the fly with as little deviation to your final destination as possible.
Managing risk in a project is about keeping unwanted outcomes to a minimum, just like good driving is about getting to your destination safely. With the right risk management strategies in place, you can navigate any project (or road trip) just like a pro driver on the road, hopefully with fewer road rage type-project risk meetings! Project Risk (Simplified) 1. Obtain reliable, up-to-date project information.
2. Support your project risk with rules and regs.
3. Risk analysis.
4. Constantly monitor.
5. Balance your risk .vs project success.
6. Store your project information.
7. Modify the project plan when applicable to stay on track.