Why manage risk in projects?

David Hillson explains why managing risk in projects is essential, vital and helpful.
This short video was recorded for the "Quality and Risk" course run by the Experiential Digital Global Education Innovation Unit (EDGE) at Northeastern University London (www.nulondon.ac.uk/courses/qu....

[@projectleadershipinstitute]

Very informative. Thank you Dr. Hillson.

[@Risk-Doctor]

Thanks Phill, I'm glad you liked this short clip. There's much more to say of course, but hpefully this is a good starting point.

[@user-qe7yk2xr8y]

Thank you Dr. Hillson

[@Risk-Doctor]

You are very welcome.

[@Cap834]

In business can opportunity risk be avoided using exchange traded derivatives?

[@Risk-Doctor]

Thanks for this question, but I don't understand why you would want to *avoid* an opportunity? Yes, you can avoid downside risk (threat) where the primary impact is financial using derivatives. But for non-financial business risks or any kind of opportunity, the aim is to exploit/capture or maximise the risk, not avoid it. Or have I misunderstood your question?

[@Cap834]

​@@Risk-DoctorI have a doubt relating to this question that is why I asked Which of the following is incorrect with respect to opportunity risk? (A) It is the kind of risk that has the potential to improve the accomplishment of the organization's mission. (B) It is a risk connected to seizing business opportunities. (C) Opportunity risks are typically linked to the development of new or modified strategies. (D) Opportunity risks are avoided using exchange-traded derivatives

[@Risk-Doctor]

​@@Cap834. Hello again, let's see if I can clarify for you. Assuming that the risk in question is a business risk, then: (A) is usually true, although opportunities (positive/upside risks) can have different types of impact. For example, it may improve regulatory compliance, or competitiveness, or productivity, or market share, or staff morale, or... So yes, it could also improve the accomplishment of the organisation's mission, depending on how this is measured. (B) is not actually correct. An opportunity (positive/upside risk) is defined as "an uncertainty with a positive impact on objectives". Whether you are able to seize the opportunity or not depends on all sorts of factors, including your capability, capacity, competence etc. Also it may only be possible to improve the chance of the opportunity occurring. "Seizing a business opportunity" is a choice that we can make if the opportunity actually materialises, but it may not be feasible or affordable to do so. (C) is also only true some of the time. Developing new or modified strategies may be an appropriate response sometimes, but that's not always possible or suitable. Maybe the best we can do is monitor the situation and have a contingency plan ready in case the opportunity happens. (D) No, i don't think this is correct./ I would rarely want to avoid an opportunity, and then only if it had one or more severe linked threats. I hope this helps, and thanks again for your query.

[@Cap834]

​​​@@Risk-Doctor thanks for your reply sir, so option D is correct answer?

[@Risk-Doctor]

​@@Cap834 , sorry, I obviously wasn't clear. Option A is correct. Options B & D are incorrect. Option C is sometimes correct.