Improving Poor Risk Statements

Poor risk identification is to be expected and it’s common. It looks and sounds just like complaining and will often just be ignored, or put off as interpersonal conflict and lack of teamwork. To make the risk statement effective, more detail is required.

For example, instead of calling the subcontractor poor or no good, identify that the subcontractor may lack the know-how or be overbooked or understaffed. Include a timeframe: “within the subproject commitment dates.” Attempt to quantify the impact, and enumerate the delays and costs.

Example #1

POOR: The subcontractor is no good.

IMPROVED: The subcontractor hired by the client has the insufficient skill level to complete the job to an acceptable quality, within the subproject commitment dates. The rework required will cause delays, and add 3 weeks to the schedule. Extra supervision will be required, in the amount of 1.5 weeks.

Example #2

POOR: Supplier delays -that supplier is always late.

IMPROVED: If the supplier does not fulfill the scheduled delivery commitments, work will be delayed, by at most 2 weeks and cost overruns can be expected as workers are idle ($5,000/day).

With better definitions, everyone has an improved understanding of the issues and the ‘complaints’ can be taken seriously. Mitigation plans can be formulated and corrective action initiated.

With RiskMP, it makes risk statements easier as the software allows you to put in the details and auto-complete the sentences for you. Don’t worry about poor risk statements no longer.




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