Manage Risk or Does It Just Happen?
you have choices to make. Are they
spontaneous decisions, or do you
consider the risks you may encounter?
Managing risk is a continuous process.
First you need to identify and analyze
the risk and its impact, then prioritize
those risks. Next you develop and
implement strategies to mitigate the
risks, and track those implementation
plans. Finally, you identify your
lessons learned and share that
knowledge. NASA has it down to a science
– you can’t get much riskier than
running space missions.
example, though, we’ll look at risk
management in terms of energy
independence. Let’s take a look at the
If you’re going to
PMI’s 2009 Global Congress – North
America, learn more about energy
independence from keynote speaker T.
Boone Pickens, founder and chairman of
BP Capital Management. He’ll be talking
about a comprehensive solution on how to
decrease reliance on imported oil here
in America. And check out this month’s
Know How Network
article and this issue’s
The Cost of Energy
article to learn more about energy
Risk: In this first step, NASA
identifies risk issues and concerns,
so for us it would be that oil
supplies decrease while demand
soars, resulting in energy prices
rising faster than inflation, and
investments growing slower than
Impact: This is where NASA
evaluates, classifies and
prioritizes risks. Our biggest is
the larger percentage of day-to-day
expenses required to cover energy
Risk mitigation strategy: Now
it’s time to decide, as NASA does,
what – if anything – should be done
about your risks. Research and
review alternative energy options.
Do a financial analysis of
investment versus savings over time
for best options.
You can bet your life that NASA
tracks its risk metrics and
mitigation plans. Be sure you do the
same and note your key lessons
Communicate: Share what you’ve
learned with others. NASA teams most
you manage risk?
NASA has it down to a science – you
can’t get much riskier than running