Risk is Everywhere.
The entrepreneurial world of web pages and email marketing is no exception. Thankfully, there are four proven ways to manage risks on your projects.
In project speak, risk is defined by the Project Management Institute (PMI) as:
An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.
The Good News
Risk can be positive.
For example, you get more subscribers to opt-in to your new email mailing list than you anticipated. Or you realize more online sales of your product or service than you were assuming.
(You’ll discover four valuable project responses to positive risks (aka opportunities) in a subsequent blog post. Click here to join the free mailing list and never miss an article about the project side of online entrepreneurship.)
The Bad News
Risk is more often negative.
For example, your new opt-in form to build your mailing list isn’t working correctly. People are interested in what you have to say or offer, but they are unable to join your list. If that happens, it is likely they will never return to your web page.
The same case applies if your online checkout process does not work. People lose confidence in a business online in a moment’s notice.
Managing Risk is Critical
Any new resource or process you offer online in service to others is created in a project.
And your success depends significantly on your ability to then manage risks on your projects.
Project management helps you.
4 Ways to Manage Risk on Web Projects
There are four commonly accepted ways to manage negative risks on projects. Once you are familiar with them, you will be better positioned to plan ahead for the inevitable risks of doing business online.
1. Accept the Risk
When you accept a project risk, you take no action unless the risk occurs. This is an appropriate response to risks that are low in probability or when it is not reasonable to avoid, mitigate, or transfer the risk. A common acceptance strategy is to have contingency reserve in place (often in the form of time or money) if the risk occurs.
2. Avoid the Risk
When you avoid a project risk, you are eliminating the source of the risk from your project plan. For example, one way to avoid the risk of spam in your blog comments is to disable the comments feature on your website. The most extreme way to avoid a project risk is to shut down the project.
3. Mitigate the Risk
When you mitigate a project risk, you are taking action to reduce the probability or impact of a risk. A common (and smart) way to mitigate the risk of technology not working on your web pages is to execute a test plan. A test plan directs you to put your own processes like an autoresponder sequence to the test. You don’t want to learn your opt-in form or online shopping cart is not working days or even weeks after “going live”.
4. Transfer the Risk
Lastly, when you transfer a negative project risk, you are shifting the responsibility for the risk to a third party. Any insurance company is in the business of risk transference. You pay a premium for someone else to manage the risk if it occurs. In the digital commerce industry, a company like Rainmaker Digital manages WordPress plugin security risks for its customers through the Rainmaker Platform. That’s one reason the platform is a more expensive investment than a standalone WordPress site.
Project Management Works
The secret to successful entrepreneurship is simply this…
Plan the work and then work the plan.
The four ways to manage risk are critical elements of any project. Plan ahead and don’t accept all risks. Instead, plan to avoid, mitigate, or transfer most of your risks.
Your success depends on it.
Seeking professional project guidance for online entrepreneurship in a supportive and interactive environment?
You may be interested in the upcoming Graceful Resources project on How to Build an Email List.
Stay Connected to Project Announcements
Even if you already have a mailing list, the scope of the project is worth a close look. It is designed for professionals like you who have other full-time responsibilities.
Risk strategies will be clearly outlined for participants.
Cheering for your online success – one project step at a time!
Brent