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17 October 2009

"Never give a fool sterile information, because he cannot ignore it."

"Never give a fool sterile information, because he cannot ignore it."

So says Nasim Taleb when discussing risk management in the financial industry. 

The same can be said about our industry.  Think about this paraphrased comment; If we all use the same risk management framework, but we price risk wrong, we are headed for a huge problem.

So, when you are assessing likelihood and impact you are assessing the cost of things going wrong.  But are you thinking about the work that is required to manage your risk?  Do you update your schedule and budget to acknowledge additional effort required to manage these risks?

There are two things going on here: Being transparent and accountable about the cost of managing risk and building resilience into your project.