In this series Part 1, I addressed Risk Identification. In Part 2, I addressed Risk Probability, Impact and Exposure. In this entry I will discuss the concept of the “Risk Trigger”.
An important aspect of Risk Management is knowing and detecting that the risk has occurred. This is know as a “Risk Trigger”. In some cases it may be obvious. An example of this would be a risk such as “If the project team loses key resource “A”, then the task estimates assigned to “A” will need to be extended which may impact key milestone commitments”. In most cases the PM will know when they have lost a key resource. However, in the case of very large project teams, the key resource may be embedded deep in the project hierarchy, hiding the loss unless there is a communication plan to notify the PM
Your risk triggers must define the method you will use to monitor the risk. For example, if there is a possible change to a government regulation that will impact your project, you can engage your Legal team to monitor the status of this regulation on a regular basis and report any changes directly to the PM.
Here is another example: if there is a risk your server capacity is insufficient to meet peak demand, you might direct your technical team to establish monitors for CPU and disk usage and raise a flag if they are approaching the safe limits.
The lesson here is don’t assume you will just know when a risk has occurred. Define Risk Triggers (even the obvious ones) for all of your risks.
Now that you know your risks, exposures, and when they occur, the next step is to manage them with mitigation and contingency plans. I will tackle these topics in the upcoming posts.