Risk vs Issue

Chris Reddy Sept 2023. Risk vs Issue.

If your presentation is confidential, this second slide should be the appropriate version of this layout: company, customer, or NDA..

[Audio] When it comes to project management, understanding the difference between "risk" and "issue" is important. Risk is a potential event or condition that could have a negative impact, and its occurrence is uncertain. On the other hand, an issue is a problem or challenge that has already occurred and has consequences that are known. Key differences include timing – risks are future-oriented while issues are present or past events – and the response required: risks require proactive planning, whereas issues need reactive resolution..

[Audio] I have focused my talk on the significance of distinguishing between risk and issue management in the realm of efficient project management. When we distinguish between risks and issues, our project management can become more effective and successful. We can then assign our resources more competently and proactively tackle risks in order to reduce the chances of having issues arise. Most of all, clear communication is irreplaceable for managing expectations and preserving trust with stakeholders. I hope this talk has been beneficial to you and that you now understand the importance of distinguishing between risk and issue management..

[Audio] The potential event of a delay in component delivery is classified as a risk due to it not having occurred yet and its impact being uncertain. A response plan should be developed to prepare for this eventuality. An issue, on the other hand, is an event that has already occurred and needs an immediate response, making it more urgent than a risk..

[Audio] Risk and issue are different from one another. An issue is a sudden problem that has an identifiable cause and has already occurred. For example, the gas purification system underwent a valve malfunction and as a consequence, the plant had to shut down. When faced with such an issue, immediate action has to be taken such as troubleshooting or looking for replacement parts. Getting familiar with the differences between risk and issue can enable teams to anticipate and react to potential problems in an efficient manner..

[Audio] Understanding the differences between risks and issues is critical for successful project management. A risk is a potential future event that could have a negative impact on the project's success, while an issue is a current problem that needs to be addressed and resolved immediately. For example, to reduce the impact of disruption in the supply chain of a gas purification system, ordering critical components ahead of time and/or having a backup plan in place can help minimize plant shutdowns due to unexpected valve malfunctions. Effective communication with stakeholders depends on the ability to distinguish between risks and issues, as it enables proactive risk management and quick issue resolution..

[Audio] We have outlined the Appendix of the presentation - which details the practical implications of the research conducted. We have identified the areas of risk in our company, and how we can prevent and manage them. We have discussed issues that we will need to consider, and the strategies that we can use to address them. By understanding the difference between risk and issue, our company can move forward with confidence as we strive for success. Thank you for your attention and for allowing us to present our findings on Risk vs Issue for Entegris, Inc..