When we think about project risks, our minds often jump to schedule delays or cost overruns. However, there are numerous other risks that can impact a project, which are not directly related to the schedule or budget. These non-schedule related risks can be just as critical and need to be analyzed alongside traditional risks to ensure comprehensive risk management.
What Are Non-Schedule Related Risks?
Non-schedule related risks are those that do not directly affect the project’s timeline or budget but can still have significant impacts. For instance, in the 2011 movie “We Bought a Zoo,” Benjamin Mee (played by Matt Damon) buys a small zoo and faces numerous challenges to get it ready before the tourist season. These challenges include ensuring the animals are healthy, constructing enclosures to standards, and obtaining certification from strict USDA inspectors. Although these efforts do not directly impact the schedule or budget, they are crucial for the zoo’s successful opening.
The Complexity of Zoo Projects
The zoo business is inherently complex and risky. Risks associated with zoo projects can impact not just cost and schedule, but also animal safety, visitor security, public relations, and the quality of exhibits. For example, in 2015, a devastating flood in Tbilisi, Georgia, caused numerous animals to escape from the local zoo, leading to safety and security concerns. Similarly, the Denver Zoo’s $50 million Toyota Elephant Passage project had to ensure safety, security, quality, public relations, and regulatory compliance, in addition to staying on time and within budget.
Why We Often Ignore Non-Schedule Risk Categories
Despite their importance, non-schedule related risks are often overlooked during project risk analysis. There are several reasons for this:
- Compartmentalized Risk Analysis: Organizations often assign different departments to analyze different types of risks. For example, project schedulers focus on schedule risks, while QHSE (Quality, Health, Safety, Environment) teams handle safety risks. This compartmentalization can lead to a lack of centralized risk management.
- Human Psychology: People tend to focus on the most tangible and pronounced information, often ignoring other relevant data. This “focusing effect” means that project managers may prioritize schedule and cost risks over other types of impacts.
Conclusion
To improve project decision-making processes, it is essential to analyze non-schedule related risks alongside traditional schedule and cost risks. By understanding and managing all types of risks, project managers can ensure the successful completion of their projects, safeguarding not only the timeline and budget but also safety, security, quality, and public relations.