This Interview with David Hillson was recorded at the PMI Global Congress 2014 in Phoenix, Arizona.
When most people talk about risk in projects, they are thinking only about uncertain future events that would have a negative effect on achievement of project time and cost objectives. However the definition of risk in the risk chapter of A Guide to the Project Management Body of Knowledge includes much more than mere threats to the project schedule or budget, and other risk standards agree. If we limit our view of risk to look at only one part of the risk picture, we will not be proactively managing all the risks that might affect the success of our project, and we will end up taking risks without knowing it.
In this interview with David Hillso we explore the other types of risk that are usually missed from the typical risk process. Drawing on leading thinking and current best practice, we explore the full range of project risks that need to be managed, starting from the proto-definition of risk as “uncertainty that matters”.
Risks that matter include those with positive effects as well as those with negative effects (opportunities as well as threats). They can also affect any project objective, not just time or cost.
In addition, uncertainty in projects arises from much more than future uncertain events (“stochastic risks”). Other sources of uncertainty include variability (“aleatoric risk”), ambiguity (“epistemic risk”), and emergence (“ontological risk”).
With illustrative examples of each type of risk, and practical response strategies for managing them, this interview helps us to identify all types of risk that might affect our projects, and offers ways for us to tackle them effectively.