![\"j0316768\"](\"https:\/\/svapm.org\/wp-content\/uploads\/j0316768.jpg\" "\\"j0316768\\"")
Notice the difference in risk management attitude and knowledge?\u00a0 Would thisenvironment encourage\u00a0 product development success?\u00a0 Well, it won’t make it an easy path…<\/p>\n
Across the Product Lifecycle, she characterized five “faces” of risk:<\/p>\n
- \n
- Business:\u00a0 Risk related to the eventual business value<\/strong> of the product<\/li>\n
- Technology Risk related to the maturity of the technology<\/strong> required for the product<\/li>\n
- Product:\u00a0 Risk related to the commercialization <\/strong>of the product<\/li>\n
- Development Risk related to the ability to develop<\/strong> the product<\/li>\n
- Manufacturing: Risk related to the manufacturing processes <\/strong>of the product<\/li>\n<\/ol>\n
The relative importance of each\u00a0 “face” changes over the lifecycle and that a”Risk Footprint” is unique for each product.<\/p>\n
Imagine a “wave” moving towards a beach, where the wave represents one type of risk. The beach is when the wave is minimized, similar to the level of risk when a product has started being delivered to the customers.\u00a0 Imagine five “waves” at different intensities and on top of each other – that is a Risk footprint.\u00a0 And imagine your company is riding the “surfboard” on top of those waves. Got the idea?<\/p>\n
Her final point: “It’s about the Business”.\u00a0 Thanks to Ms. Hinman and Intel for this insightful presentation!<\/p>\n
Risk Paradox: Why Effective Risk Management Seems to Encourage Poor Risk Management
![\"risk](\"https:\/\/svapm.org\/wp-content\/uploads\/2008\/11\/risk-blah.thumbnail.gif\")
<\/h3>\nPayson Hall’s topic provided great understanding into the lifecycle of a organizational risk management practices.\u00a0 Not doing justice to his creative and well-organized presentation, the lifecycle was described as:<\/p>\n
Nearly non-existent<\/em> –> Scattered & Episodic –> Coordinated & Increasingly Effective <\/strong>–> Calcified & Process-Bound –> Decaying & Sporadic –> Nearly Non-Existent<\/em><\/p>\n
So why does this cycle occur? One possible cause he described as Framing bias. <\/em>If we were asked to choose between 80% chance of losing $4000 or 100% chance of losing $3000, most people would pick the former.\u00a0 His evaluation of this situation:
\n<\/em><\/p>\n“Humans aren’t risk averse, but are “losing averse” & perceive possible losses as a greater threat than possible gains.\u00a0 We have a bias toward taking greater risks to avoid losing.”<\/em><\/p>\n
There are also challenges to maintaining effective management practices.\u00a0 One I particularly like is the fact that “Risk Management isn’t Sexy”.\u00a0 Comparing a fireman to a fire inspector, who do you think saves more lives?\u00a0 Preventive measures aren’t attractive – heroes are.<\/p>\n
His suggestions for stabilizing this effect:<\/p>\n
- \n
- Implement in slow & deliberate steps<\/li>\n
- Seek executive input about which risks to address; Keep them involved<\/li>\n
- Take credit for wins AND losses; don’t oversell the benefits<\/li>\n<\/ul>\n
These suggestions are useful for any type of long term organizational change.\u00a0 His main point was to keep telling people how risk management is helping the business, all the time.<\/p>\n
If you have a chance to see Payson’s full presentation, make the effort! It will be worth it!<\/p>\n","protected":false},"excerpt":{"rendered":"
Two of the keynote speakers at the PMI Risk Symposium provided insights into how different risks change in priority over […]<\/p>\n","protected":false},"author":1481,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"give_campaign_id":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2,7,9],"tags":[654,1375],"class_list":["post-3215","post","type-post","status-publish","format-standard","hentry","category-leadership","category-goals","category-risk-management","tag-product-life-cycle","tag-risk-management"],"aioseo_notices":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/svapm.org\/index.php?rest_route=\/wp\/v2\/posts\/3215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/svapm.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/svapm.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/svapm.org\/index.php?rest_route=\/wp\/v2\/users\/1481"}],"replies":[{"embeddable":true,"href":"https:\/\/svapm.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3215"}],"version-history":[{"count":1,"href":"https:\/\/svapm.org\/index.php?rest_route=\/wp\/v2\/posts\/3215\/revisions"}],"predecessor-version":[{"id":14326,"href":"https:\/\/svapm.org\/index.php?rest_route=\/wp\/v2\/posts\/3215\/revisions\/14326"}],"wp:attachment":[{"href":"https:\/\/svapm.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/svapm.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/svapm.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- Technology Risk related to the maturity of the technology<\/strong> required for the product<\/li>\n