Risks and Issues in RAID

Understanding and Managing the Risks and Issues in your Project are not always easy and simple. But understanding what kinds of risks and issues can arise during the Project Execution would help you to manage both things easily. Let us understand the various risks and issues so that we can carefully understand the scenario to create an accurate RAID Log for our Project.

1. Resource Availability

The risks and issues associated with the resources include the scarcity or mismanagement of essential resources. Various activities across different project phases can suffer in terms of manpower, technology, equipment, or even financial backing. Risk related to resource availability arises due to the shortage of these critical resources. Following are the various cases in which this type of risk is observed:

• Project Experts face challenges in recruiting, retaining, or accessing the right talent.
• Technology issues such as outdated tools and unavailability of essential technological resources.
• Financially, the project may suffer in terms of insufficient funding, budget constraints, or financial mismanagement.

Consider an example in which you want to launch a new application using a specific technology stack, then you would need to search for highly skilled professionals. If skilled personnel is scarce in the market, executing the project can be risky. Also, executing the project will compromise the project’s overall quality. This is an example of risk associated with Resource availability.

2. Market Risk

Market risk may arise due to the external business environment such as market dynamics, competition, and customer demands. This type of risk also includes the commodity markets, interest rates, foreign exchange, and liquidity and credit risks. Therefore, the Project Experts in the team have to be very clear about the various external business factors so that this risk can be prevented. Market Risks are observed in the following types:

• Systematic Risks that affect all the project assets such as inflation or interest rates.
• Unsystematic Risks in which only a few investment factors such as company-specific events are affected.

For example, if the prices of enterprise software services increase by an uncertain amount or fluctuate unexpectedly due to some reason, more investment would be required in the project execution. Due to this, there would be uncertainty about the ROI (Return On Investment) which makes the project execution risky.

3. Fluidity

This refers to the ability of the Project to adapt to the additional requirements or changes in the middle of the project phase. The Fluidity aims to make the project not only adapt to the new changes but also provide stability in its features. Some scenarios that may create this type of risk are

• Project Scope changes in terms of timelines, resources, target market, and overall project objectives.
• Clients or stakeholders demand change in the functionality, features, or performance criteria of the Project.
• The market factors change such as shifts in target demographics, trends, or industry standards.

An example of a Fluidity issue is the shift in the target customer in the requirement specification. Thus, it becomes a concern whether the product would be able to accommodate the shifted target market or not.

4. Regulatory Risks

The software application should be compliant with various laws, regulations, or industry standards. Hence, it can be risky to execute a project without mentioning the related legal compliances related to security, authentication, data safety, etc. Also, the end product should be able to adapt to the updates in the regulatory policy and compliances. The regulatory risks include risks associated with

• Compliance with laws and regulations like data protection laws, privacy regulations, or industry-specific compliance standards.
• Changes or updates in regulatory policies, which change the legal requirements and scope.
• security breaches, unauthorized access, or vulnerabilities due to which the project becomes non-compliant with the security standards.

Are you facing difficulties in creating a RAID Log for your Project? If it is so, you landed in the right place. This article covers a detailed explanation of the RAID Log, its features, and its structure. By the time you reach the end of this article, you will be able to create a RAID Log so that you can have a very smooth Project Execution.

With diverse tasks and development activities, Project Professionals often come across management challenges in the execution phase of the Project. Thus, a proper record has to be managed to prevent those challenges from becoming a potential risk for the Project. RAID Log helps us in this task of tracking the risks and issues across the project phases.

In this article, you will learn about the RAID Log and its structure so that it becomes easy for you to keep the stakeholders and team informed about the challenges and risks coming ahead in execution tasks.