There is a good article in Projects@Work about what to do when a risk you chose not to mitigate materialises, and how to handle it.
From Projects@Work – A Guy Named Murphy:
Widely accepted risk management theory says that doing nothing is an appropriate response to some risks. But what happens on a project when you’ve done no risk mitigation and then the risk materializes?“When you are running a large project and have already passed the project planning phase, the project manager’s core role is managing the performance of people, meeting plan expectations, and assessing the threats to project success,” say Tim Pare and John Kirkwood, managing consultants at PA Consulting Group. “From a practical point of view, there are always a ton of these threats and there is seldom time available to spend on things that have a low likelihood. It is probably more often the case that risk mitigation activities are curtailed, or not enacted at all, rather than pursued for too long.”
Lisa Anderson, president of LMA Consulting Group, also believes that there’s a natural stop to risk management activity. “I’ve led project teams, it is common to have unexpected events and challenges arise. [But] once you have established an effective project team and defined a critical path, stop risk mitigation activity, as it will be a waste of time and resources,” she says.
In fact, these unexpected events are par for the course in project management. “If you have been a PM for any length of time you have run into problems on your projects — especially if they are IT or technology related,” says Bruce McGraw, CEO of Cognitive Technologies, a professional services firm delivering project and program management services, products and PMO tool implementation to commercial and government clients. “In fact, we blame these problems on a guy named ‘Murphy’ which has led to the whole field of risk management, where we try to think of all the things that can go wrong before a project starts. The first step in addressing the worst case is to determine that you have a problem. That is not always as simple as it seems.”
Johanna Rothman, author of Manage It! Your Guide to Modern, Pragmatic Project Management, agrees. As a consultant, she was brought in to help resolve a crisis on a development project where nothing was working and everything had been tried. “[The] project was slipping a week every week,” Rothman says. “The PM had no idea what to do. The project team had no idea. They were trying to integrate a piece of hardware and software, and it wasn’t working.”
Rothman established that the problem they thought they had — no more options — wasn’t actually the real problem. “The developers had been saying ‘We’ve tried everything’ but they hadn’t. The testers were saying ‘We’ve tested everything’ but they hadn’t. I had them build a matrix of everything they’d tried and the results they’d gotten. Once they realized there were holes in the matrix where things hadn’t been tried, they knew how long those tasks would take and we would have another chance to reassess after those tasks were done.”
