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  • (upbeat music)

  • - Risk is essentially anything that could go wrong

  • and in the corporate space,

  • we do risk planning to really make sure

  • that we stay out in front of

  • any possible barrier to the successful delivery

  • of the project,

  • so it could be having resources

  • that aren't made available when we need them

  • to do certain activities,

  • it could be a contractor who doesn't

  • deliver a piece of the project on time,

  • and, you know, the key to our risk planning

  • is making sure that, as a project manager,

  • you're asking those questions and

  • looking for those things so that you are

  • identifying them early and

  • have the time to do the planning around

  • mitigation plans that could either

  • head off the risk before it comes to fruition

  • or, if it does happen, that you have

  • a contingency plan that you can implement

  • to keep the project moving forward.

  • - That's certainly, risks are a significant situation

  • we all look at, which you know,

  • we're talking a little bit about threats

  • and you have those, you have the threat

  • which is a negative probability,

  • you know, something negative happening,

  • but also the opportunities

  • which are not often sometimes,

  • but if you can find one, you need to export it of course.

  • My experience dealing in defense contracting,

  • in that industry, we had great risk

  • because our product, the products that

  • I was responsible for, must meet certain little specs,

  • and they were very tight tolerances,

  • and extremely significant layers of testing.

  • I mean, you know, multiple hours,

  • various chambers, various atmospheres

  • that they had experienced.

  • So great risk involved in some of the sub-components

  • that you would get from a sub-tier supplier,

  • that they have to meet those specs,

  • and if they did not meet the proper specs,

  • then I had a risk because I get false readings

  • on tests, etc.

  • Also one of the biggest challenges that I've faced,

  • I had five sole source sub-tier suppliers

  • because of the proprietary ownership of that component,

  • and each of the shortest lead time I had

  • on any of those suppliers was 20 weeks.

  • So you see the risk there to schedule.

  • If they're behind, if for anything,

  • so I had to develop a major risk register,

  • which I tracked, and also you would

  • basically have categorized all your risks,

  • which are the greatest catastrophic type of situation

  • you can develop risk responses to that.

  • And you have others which were lower risk,

  • you put like on a watch list.

  • You know, if this happens, it may delay a week.

  • But if this happens, it could shut the program down.

  • So you gotta be aware of all those,

  • and you have to manage those risks.

  • And the last thing I'd say is risk management is iterative.

  • You know, it's a cycle that never stops,

  • cause there'll be risks once you develop a risk response

  • and you implement that, and then you determine

  • the success of that response,

  • sometimes you have second and third order affects

  • to that response that create other risks,

  • or maybe opportunities, you don't know.

  • (laughter)

  • But and the quality aspect was some of the greatest

  • risks I faced.

(upbeat music)

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