Training objective
The objective of this practical and simplified mini-training video is to enable you to understand the key differences between a risk and an issue..
What you’ll learn
After watching this training video, you will understand the key differences between a risk and an issue and how to use an extended risk matrix to evaluate an issue.
Transcript
[Slide 3] Differences between a risk and an issue
A risk is an event that has not happened yet but may. We plan and work out mitigation plans for critical risks.
An issue is something that already has happened. Immediate action must be taken to mitigate its impact.
The main differences, therefore, relate to timing and likelihood.
Because of these differences, the language used to describe risks is future tense: “If this happens, then this will be impacted.”
For issues, the language used is in the present tense: “We have this problem. How should we deal with it?”
For issues, you need an action plan. For example, when someone leaves the project team, this is an issue since the event has happened. The list of action items could include hiring someone quickly, hiring someone on contract, delaying the project, or outsourcing the project. These action items are discussed, and action is initiated right away.
[Slide 4] Using an extended risk matrix to evaluate an issue
Organizations can use the same risk matrix to evaluate the severity of issues. Since issues have a likelihood of “occurred”, the risk matrix could be adapted to accommodate the rating of issues without the need of having a separate issue rating table.
Both risks and issues can be recorded in the same register, or separately. From a project management perspective, issues recorded in the issues register should be discussed almost every day. Risks recorded in the risk register should be reviewed periodically. It could be weekly or less frequently during status review meetings.
