Many business people are willing to accept the view point that their priorities can be classified based on risk and issue to ensure best practices. Risk is the potential loss attached to any specific item, while Issue is the actual loss at hand. There is a clear distinction between the two scenarios.
The most noticeable difference between risk and issue is that an issue is assigned to any specific person. Risks cannot be assigned to any specific person or people. Issues are certain and expected turnouts. This means that to ensure best practices, it is not possible for one to assign a particular person or persons to any particular risk. For best practices, project managers have to assign risks to a particular person or people. This is because even upon being a project manager you cannot have expert knowledge about every technical aspect.
A risk on the other hand, is an uncertain event. If a risk materializes into a reality, it comes with consequences that can alter the course of any project. A risk is something that has not happened yet and is only a prediction at the moment. Its possibility to occur in the near future is what has led to the concept of risk management for best practices. It is important to mention that risks are not always issues. When a risk doesn’t end with detrimental consequences it doesn’t become an issue.
A risk is often considered as any potential variation in a plan. It can be a hazard or an opportunity a project manager may encounter at any point. Taking risks is not one of the recommended best practices. Risk is taken when one takes chances with volatile or sensitive circumstances which can lead to failure, financial losses or any other setbacks in the business or to the company. Issues are likely to occur when members in the team are not aware of best practices. Similarly issues may arise when customers are misinformed or when there are other issues in risk evaluation.
Therefore, when it comes to risk versus issue, they both have an important role to play in any business setup. They are both intertwined with best practices and can be avoided through effective best practices. Risk management is an important aspect of business, which allows project managers to prevent risks and control issues from arising.
Risk management is an important best practice and requires project managers to have the capacity of differentiating between risks and issues. By mitigating risks they can successfully prevent issues along the process of a project.