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Lessons · Project management · writing a risk: cause, event, effect

A risk is a sentence: because of this, that might happen, and it would cost this

A risk statement names the cause (a fact today), the event (an uncertain thing that might happen) and the effect (what it would do to scope, time or cost).

Hone is a place to practise a career, one idea a day. This is one of its lessons, written out in full and free to read without an account.

What it is for

The risk register says vendor risk. Nobody can act on that. Because the vendor has never shipped this model, the delivery may be late, which would push the install by two weeks tells you what to watch, what might happen, and what it is worth to prevent.

How to think about it

Write it in three parts and check each. The cause is true now, or it is not a cause. The event is uncertain, or it is an issue, not a risk. The effect is in scope, time or cost, or it is not worth writing.

Worked example

Cause: the vendor has never shipped this model before
A fact today. You can point at it.
Event: the delivery may be late
Uncertain. If it had already happened it would be an issue.
Effect: the install slips two weeks and the crew is idle at $4,000 per week
In time and money, so it can be sized and compared with others.
Register row: R-03, cause, event, effect, probability 30%, impact $8,000, owner: the procurement lead
The statement, filed where it will be reviewed.

Your turn

Complete the shape of a risk statement.

Because of (cause), (event) might happen, which would ().

The trap

Writing an issue as a risk. The vendor is late has already happened; it needs a response now, not a probability.

Practise writing a risk: cause, event, effect on HoneA question on it now, a coding challenge where there is one, and it is remembered for review. Free, no email needed.