Why There Are No Small Risks in Project Management

I always say “there are no small risks,” and for good reason. While initially you might decide not to address specific risks because their probability or impact is relatively small, the risk itself should never be ignored. The nature of projects and the rate of business change mean that what starts as a minor risk can quickly escalate. A risk that wouldn’t have much impact could suddenly become critical as circumstances evolve. That’s why the concept of “no small risks” is so important—you always want to keep track of any risk you capture.

In a LinkedIn Live discussion, Bec Bennett, an experienced risk management professional, puts it simply: “It’s our responsibility to manage every risk. Failing to manage the events that create risk, inside and outside of our projects, can create threats to our success.” While we can plan for the known elements of a project, it’s the monitoring of the things we can’t control, big and small, that helps keep the wheels from falling off.

Despite risk management being critical, getting people to even talk about risk, especially those risks stakeholders believe are “small,” can be a challenge. Teams want to focus on the positive, on getting things done. They don’t want to engage in the “gloom and doom” of reviewing low-level risks. But here’s the reality: if you don’t consistently address all risks, small or large, and monitor for triggers, these risks can threaten your project delivery.

Many project managers have learned this lesson the hard way. When you develop a risk register but don’t proactively engage in risk management for any identified risks, they can turn into issues. And dealing with an actual issue that’s happening is far more heart-pounding and difficult than mitigating the risk beforehand. This doesn’t mean you need a detailed plan to address all risks, including the “small” ones. This means you should confirm that small risks remain small when risk triggers surface so that the project team can react accordingly.

By the way, this isn’t always a doom and gloom exercise. Risks aren’t always detrimental. The Project Management Institute has expanded its standard project vocabulary to include “opportunities:” the risk of something good happening that you want to increase the probability of occurring. When you have a tight budget or deadline, even small opportunities might be worth actively addressing to maximize the project’s value.