Poor risk or issue management can lead to project failure.

This article features a

program manager at IBM (Bangalore, India) and a project management consultant/CEO
of RefineM (Springfield, MO) debating whether project managers should treat risks
and issues differently. It defines a risk as an event that has not happened yet,
and an issue as something that already has happened. It then details how project
professionals use an issue register or issue log to track issues. In addition, the
article addresses how a risk is handled when it materializes. It then explains how
issues recorded in the issues register should be discussed almost every day, while
risks recorded in the risk register should be reviewed periodically. If a project
is two years long, it would be overkill to review risks every week. The article
makes additional recommendations for projects of various lengths.

One of the most widespread project management trends in recent years has been the
increased focus on risk management within a project. Enterprise project managers in
every industry have recognized the importance of identifying and avoiding project
risks, and have begun to take a more formal approach to risk management in every
phase of the project.

difference between managing risk and managing an issue

Ideally, all this extra attention to risk management would mean that project risks
never materialized and became issues. The reality, of course, is that even the best
project managers sometimes have to deal with risks that they are unable to avoid.
As with risk management, issue management at the enterprise level requires a
formal, well-thought-out approach.

Here’s a look at how today’s most successful enterprise project managers are
managing their risks and issues.

Enterprise Risk Management

Risk management, put simply, is the process of identifying potential problems that
might arise over the course of a project and creating a plan for avoiding those
problems. In the past, this was once a fairly informal process—if it happened at
all—but many organizations now require that project managers build a risk
management plan into their project plans from day one of the project. While the
risks to a project will depend in large part on the specific goals of the project,
PMs in every industry should follow a few basic best practices:

Start the risk management process as early as possible in the project, and have a
definite plan for how risks will be identified and monitored throughout the
project.
As you identify each risk, also define which team member (or team members) will be
responsible for tracking and reporting on the risk.
Prioritize your project risks based on the likelihood that they will occur and the
severity of the problem if they do occur.
Keep the lines of communication open. Many project managers build time for a risk
management discussion into their daily or weekly calls with senior stakeholders and
the rest of the project team.
Enterprise Issue Management

While a project risk is a problem that may or may not occur at some point during a
project, a project issue is a problem that is actively disrupting a project or
putting its success in doubt. Not every issue can be foreseen ahead of time;
however, project managers should have a framework in place that allows them to
tackle any issue logically and effectively.

Include an issue management plan in your overall project plan, outlining the
process you will use to evaluate and address any issue that occurs.
Use your organization’s project management tools to communicate with the team about
issue status, responsibilities and outcomes.
Just as with project risks, it’s important to prioritize issues. While some may
have the potential to disrupt the entire project, you may find that others require
little to no response.
With these tips, and effective team management strategies, you should be able to
identify project risks and issues before they become a major issue.