Using Risk Metalanguage
Managing risks effectively is essential for successful project outcomes. However, the terminology used when discussing risks can often be misleading. Project managers can become entangled in overlapping definitions and semantics. Specifically, there's a notable challenge in distinguishing between the causes of risks, the risks themselves, and the possible outcomes or effects.
Causes: Simply put, these are the precursors to risk. They represent definite real-world events that introduce uncertainty into a project. For example, incorporating a new software tool into a project's workflow might cause a risk, but it is not the risk itself.
Risks: These represent the uncertainties that arise from the causes. For something to be a risk, it must be genuinely unclear whether it will happen. Using the previous example, the programming team's unfamiliarity with the new software tool could mean they take longer than expected to complete their work; that is, there is a risk that the new tool will lower programmer productivity.
Effects: If risks materialize, effects are the consequences that follow. If, for instance, the new software tool lowers productivity, the effect might be that the project misses its deadline. While they provide insight and are especially important when analysing risk impact, the effect must be distinguished from the risk itself.
When causes, risks, and effects become indistinct, project managers run the risk of sidelining genuine threats. Clear definitions and distinctions are needed to ensure you allocate scarce resources most effectively.
To address this situation, David Hillson devised a risk metalanguage. This is a straightforward, three-part risk statement designed to avoid any overlap between causes, risks, and effects. The format is:
"As a result of <definite cause>, <uncertain event> may occur, which would lead to <effect on objective(s)>."
We can express our example in risk metalanguage like this: "As a result of the new software tool, lower programmer productivity may occur, which would lead to missing the project deadline."
Risk metalanguage isn't just an academic exercise. It ensures that risks are identified and distinguished clearly from their causes and potential effects. This clarity is foundational. Without it, the risk management process can quickly become a quagmire, steeped in confusion and misdirection. To prevent project pitfalls, the use of risk metalanguage is highly encouraged.
Risk Register by ProjectBalm is a proven tool that helps you record and manage your risks.