Monday, February 28, 2011

Running a risk

Written 50+ years ago:
You're running a risk.
That's the good part .... when you've nothing to lose, you can run any risk you want.
Ray Bradbury, author
"Fahrenheit 451"

This attitude may not work very often in the project business. But it points up one important idea:

The first question to ask when faced with an opportunity or a threat is: "Can I afford the downside?"

You may well have more than "nothing to lose", but if the loss is affordable, then perhaps the upside opportunity is more attractive than evident at first blush; and perhaps the threat is less ominous than first thought.

My advice: don't insure for risks you can afford.

And, that's not only about insurance, it's about investing in expensive mitigation the project may not need. In other words, some reasonable consideration of affordability as applied to the risk register may your 'new best friend'

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