PR programs are all about change and change invariably incurs risks.
The PR Manager must control and contain risks if a program is to stand a chance of being successful.
A risk is defined as an adverse future event that could have an effect on the project.
Likelihood of risk As complexity increases so does the probability (likelihood of risk), as size and criticality increases so does the impact of the risk.
Basics of management
PR Manager is responsible for ensuring that the risks are identified, recorded, managed and regularly reviewed.
The most efficient way of doing this is to record all risks in a risk log and review the log on a regular basis, updating as appropriate.
The skill to managing risks is to balance the 2 major elements Cost effective action to minimise the risk. Probability of the risk occurring and the potential impact if it did occur.
Risk matrix The Risk Matrix presents a pictorial view of the risk profile for the project and increases visibility and aids management decision making 1 LOW 4 1 MEDIUM 2 1 HIGH LOW MEDIUM HIGH Probability Impact Risk Matrix
Cause and effect Potential causes of risks Change in Requirements A legislative change A corporate change of direction Added publics Unexpected change to a member of Team Actions by a competitor A Management Directive A corporate reorganisation A problem which was not anticipated A change to resource availability Problem/error occurring in work completed or underway A new Communication tool
The effect/impact can be to one or more of the following:
Behaviour –‘people know what we need to do but they do not do it’
Quality/Performance – ‘advances in technology mean that we need to change the program/scope’,
Business – environment, direction and operations change
Risk Management Procedure
The aims and objectives of the Risk Management Procedure are
To ensure that those risks that are inherent in the project are identified
That risk tolerance is considered
To ensure each risk is analysed for probability and impact.
To ensure there is an agreed plan to mitigate each risk.
To establish a procedure for monitoring risks on an ongoing basis: adding new risks, removing risks and updating risks.
To report the status of risks to the Management Group.
ROLES AND RESPONSIBILITIES
The PP Manager is primarily responsible for risk management.
It is their responsibility to follow the risk management process to ensure the credibility of the risks and their responses by continually monitoring and re-evaluating them
Conduct Risk Workshops to update the risk log or gather new risks for the next stage
Circulate new risks for assessment /evaluation feedback.
Collect feedback from recipients.
Circulate completed Risk Log/Matrix to sub-project managers, action owners and other relevant project members.
Update the Risk Log, Risk Matrix and Project Plan.
Report any changes to Risks in the weekly report
Report if any Risks have occurred, i.e. have become Issues in the weekly report
Report on any changes to the probability or impact in the daily/weekly report
Weekly (can be daily)
Report New and Open risks to the PR/Management team
Agree any changes in the containment plans.
Review any new risks or changes to outstanding risks.
Check all outstanding risks have an agreed plan in existence and that any agreed actions have occurred on schedule.
At project meetings Action Frequency
The account/campaign manager is responsible for
Notifying the PR (e.g. top PR person) Manager of any external risk exposure to the project
Making decisions on the PR Managers recommended reactions to risk
Striking a balance between the level of risk and the benefits that the project can provide
Deciding on the risk tolerance for the project (e.g. decide to accept risks which are low probability even if high impact in order to focus mitigation on those which have higher probabilities, OR decide to accept medium/high risks to time but have no tolerance for risks to health and safety matters.)
Notifying management of any risks that affect the projects ability to deliver and meet the Programmes constraints.
Example of yacht club Ditto Ditto above 2 3 2 1 Being hit by out of control motor boat Motor boat impact Implement authorisation process and training system Safety policy required. Only authorised operatives 5 3 5 1 Being cut by contact with exposed propellor Motor propellors Apply padding to booms Pad booms on training boats 10 20 2 5 Being hit on the head, or body. Booms Boat hazards Set up testing procedures 2 2 1 Annual water testing required 6 20 2 3 Drinking contaminated water Blue/green algae, Weills disease Order/make signs in readiness 5 5 1 Portable warning signs required 5 5 5 1 Thin ice, risk taking, attempting rescue Falling through ice Ditto 5 5 1 Wetsuits/drysuits mandatory in cold 10 20 5 2 Cold water, inappropriate clothing Hypothermia Ditto 5 5 1 Safety policy required 5 10 5 1 Cramp, weed entanglement, inexperience Drwoning/swimming Re-write safety policy for inclusion with membership information and handbook 5 5 1 Buoyancy aids, heavy weather sailing warnings, rescue facilities for conditions 5 30 5 1 Capsize, entrapment, man overboard Drowning/sailing Water hazards Actions Required L x I Factor Impact (I) Liklihood (L) Control Measures L x I Factor Persons affected Impact (I) Liklihood (L) Description Hazards
A mind set
Morgan Stanley on 9/11
BAA August 2006
Turn disadvantage to opportunity
Part of monitoring and evaluation process
Seek ways to automate
That there are risks in using online interactivity
There are methodologies for risk management
A PR strategy is incomplete without risk assessment