Managing Risks

Risk isn’t always a bad thing.

Granted, the risks in the earlier post 4 Ways to Manage Risk on Web Projects did cast risks in their typical negative shadow.

Negative risks should be handled carefully on any project related to your online entrepreneurial ventures – whether you are starting out full-time or as a part-time side gig.

But not all risk is negative.

Risk can actually be positive (and another name for a positive risk is simply an opportunity).

According to the Project Management Body of Knowledge (PMBOK) – the international standard for projects from the Project Management Institute – there are four suggested responses to project opportunities.

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.

So if you are in search of how to take advantage of opportunities that surface on your online entrepreneurial projects, read on…

… and if you are interested in other weekly professional tips about the critical project side of online entrepreneurship, simply click here to join the free mailing list.

How to Take Advantage of Opportunities

There are four commonly accepted ways to take advantage of opportunities (or positive risks) on projects. Like the ways to manage negative risks, once you are familiar with the ways to manage positive risks, you will also be better positioned to plan ahead for the inevitable positive risks of doing business online.

1. Exploit the Opportunity

When you exploit an opportunity, you take deliberate action in your project plan to eliminate the uncertainty of the upside risk. In other words, you make sure the opportunity is seized.

In technology-related projects, a common way to take advantage of opportunities like this is to assign an experienced project manager or to use proven software solutions.

2. Enhance the Opportunity

When you enhance an opportunity, you take steps to increase the probability or the impact of a positive risk occurring. For example, if you discover there is a strategic advantage to finish a project activity earlier than you planned, you can add more resources to the activity to enhance the opportunity for your business.

3. Share the Opportunity

When you share an opportunity related to a project (like a product launch), you share part of the reward of the opportunity with a third party. In the online entrepreneurial world, these types of opportunities are often called joint ventures.

In a joint venture, you may pay another party 50% of your product sale if the other party is responsible for the customer of that particular sale.

4. Accept the Opportunity

Lastly, when you accept a positive risk, you do not exploit, enhance, or share the opportunity. You simply hope for the best and if the opportunity surfaces, you happily take advantage of the size of the opportunity.

For example, you realize there is a chance your online membership product will appeal to a different demographic that you are targeting. Rather than marketing directly to them through Facebook ads, you accept the opportunity as is.

Project Management Works for You

The secret to successful online entrepreneurship is simply this…

Plan your work and then work your plan.

The four ways to manage negative risks are critical elements of any project. But the four ways on how to take advantage of opportunities are also critical for your success.

Plan ahead but don’t accept all risks – both positive and negative.

Your success depends on it.

If you are seeking further 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 a Relevant Email List.

Note: The kickoff date for this Graceful Project has shifted to June so that all project components are in place for your benefit. Please accept my apology for the delay.

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.

Positive and negative risk strategies will be clearly outlined for participants.

Cheering for your online success – one project step at a time!
Brent

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