Chapter 8. Issues and Risks

What is life without risks and danger, the excitement of the unknown? Well, that may be fine for your leisure time, but when managing a project, risk is something you want to actively manage. If you cannot avoid it, at least you can measure and control it to some degree. The risks to projects are as diverse as projects themselves. In fact, some risks may be positive, such as when durations may have been over-estimated. Such risks are also called opportunities. Here are a few examples of project risks:

• There may be a shortage of skilled labor, possibly requiring higher salaries and/or delays to the project schedule

• A critical piece of equipment may have a known failure rate, and such failure could cost the project time and money

• A permit may have a delay, setting back several activities

• Material prices can fluctuate, affecting the cash flow of the job—even in a positive manner

P6 has a number of facilities for monitoring thresholds in your projects, tracking issues...