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CHAPTER 11 Managing Risk and Change
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priority they give to this project, and on their willingness to let us manage the project well. Based on this assessment, we can determine the size of our contingency for change requests and the contingency for risk.
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There was an episode of a television hospital drama in which the hospital emergency room was contaminated with toxic chemicals and needed to be evacuated. In the rush, no one could nd the evacuation plan. We cannot let the same happen to us. After the risk plan is approved at the end of the design stage, we cannot throw it into the drawer and hope everything goes well. We continue the work of risk management by incorporating the risk plan into the project plan as a whole, by tracking risk in our weekly status meetings, and by managing both risk events and the project when a risk event occurs.
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Tracking risk
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We can track risk at the weekly status meeting. After we check the time and cost status of each item, we ask about risk events. If a work task is completed, and it had a risk event associated with it, we can cross that risk o our list. We are out of danger. We note whether the event did not happen, or we managed it well. If we managed the event, we calculate the actual cost, e ort, and e ect on project duration, and update the schedule and budget accordingly. We ask the team to review the risk plan items that are related to work happening now or coming up in the next two to three weeks. Have any of the events become more or less likely Do we need to initiate some risk reduction work or some extra contingency planning Train your team to alert you at the rst sign of possible danger by letting them know you want to know, but you will not interfere if they say they can handle it. Lastly, if a risk event does occur, it is time to swing into emergency action.
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Emergency action: Managing the risk event and the project
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Risk events will happen. If we have planned and tracked well, we will be ready when they do. Still, running a project while taking care of a risk event is a challenge. I call it emergency action, and it can be exciting. The challenge is
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PART THREE Skills and Tools
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to manage the risk, and also to keep the project moving ahead at the same time. How we do that depends on the nature of the risk, and also on how prepared we are. If we prepared a contingency plan for this event, then we integrate that into the main project plan and move ahead. If we did not have a contingency plan, we will have to plan as we go. That may mean some di cult work. There is a tendency to just jump into action. A few times, I have managed a risk event, and then only later remembered that I had a contingency plan. It is better to review our risk plan and communications plan, and then decide what action to take. If handling the risk event is going to take more than two or three days, we should delegate some management responsibility. Here are some ways of doing this.   If the risk event is technical, we turn management of it over to the technical person. We continue to manage the project and integrate the changes related to the risk into the overall schedule and plan. If the risk event is major, or it involves personnel issues, we should probably handle it ourselves. If so, we can deputize a member of our team to handle some of the more routine tasks of managing the whole project. If we have a well-organized team with team leaders under us, we can ask each team leader to do slightly more of the project management work so that we can spend more time managing the risk event.
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When we have successfully navigated a major risk event, we will need to jump back onto the helm of the project and evaluate status and make changes to the plan as needed.
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