Risks and ConstraintsIntelligent project management requires getting a handle on risks and constraints. Heres a primer on the most common challenges your project will face.

DefinitionsA risk is an event that may or may not happen. If it does happen, it will have unwanted consequences and will result in losses.A constraint is a real-world limit on the possibilities for your project.

What Risk Management DoesIdentify potential problems and confront them when it is cheaper and easier to do so, before there are problems and before a crisis blows up.Focus on the projects goals and consciously look for things that may affect quality throughout the project lifecycle.Identify potential problems early in the planning cycle (the proactive approach) and provide input into management decisions regarding resource allocation.Involve personnel at all levels of the project, focus their attention on a shared project (or product) vision, and provide a mechanism for achieving it.Increase the overall chances of project success.

All Projects Have a DownsideLook at everything that will get in your way or become a potential roadblock. If it is at all possible, look at both the positive and negative sides of the project before making a commitment to it.

Common Project Risks-1Funding: Will you get enough money to fund your projects needs?Time: Things can take much longer than originally planned.Staffing: Do you have the right staff? Do they have the right skill set and experience to meet your projects objectives?Customer relations: If your customer cant or wont work with your project team to help define the attributes of the project solution, watch out down the road.

Common Project Risks-2Project size and complexity: When a project is too complex or large, it will be hard to stay within budget and get it done on time, and there will be too many factors to control. Any of them can bite you.Overall structure: As a result of political decisions, responsibility gets split between competing groups and organizationsExternal factors: There are factors outside of your control, such as regulations, changing technologies, etc., that can throw your project off.

Business RisksMarket acceptance: Will the customer buy the product?Time to market: Can you get the product out there before anyone else does?Incompatible product fit: Its a great product, but no one can afford it.Difficult to sell: Its a high-ticket item or doesnt offer enough incentive to sell.Loss of support from the higher-ups: If a new manager is brought on board at a higher level, your project could lose support and funding.

Acts of God, Man and WarYour project should be insured (if possible) against:HurricanesTornadoes and HailstormsFloodsEarthquakesTerrorismBe aware, though, that many insurance policies have exclusionary clauses covering some of the items above.

Three Types of RiskKnown risks: You can identify these after reviewing the project definition within the context of the technical and business environments. Use your own experience and that of your stakeholders to define such risks.Predictable risks: These are risks that might occur or are anticipated based on work on other similar projects. They have to do with the economy or staff turnover and have an anticipated impact. You will be instinctively aware of these risks.Unpredictable risks: The doo-doo happens things beyond the control of any project manager or project team.

Constraints to Consider-1BudgetSchedulePeopleReal life in the real worldEquipment, facilities and infrastructure

Constraints to Consider-2Budget: How much money is available and when?Budgets are both constraints and risks. Projects are more expensive than realized.Your company could charge your project budget for employees you borrow and company services you require.Be careful not to agree to a budget just to please someone in management or the customer if you already know that funds are inadequate.

Constraints to Consider-3Schedule: By when must the project be completed?Is your project built around impossible dates?Even if the due date is not critical, if the project continues beyond it, it will cause the budget to bloat.Missing an end date could cause serious marketing consequences.

Constraints to Consider-4People: What inside and outside resources are required? Can you afford them?If the right people arent available, or you cant afford them, you will have to make due with whats available, and that might not be good.Availability is both a risk and a constraint that is ongoing through the life of the project.

Constraints to Consider-5Real life in the real world:Getting a project underway takes time to get everyone working well and productively together given all risks and constraints.Communication will help with project synchronization needs.By the first project milestone, review all relationships, progress and effects the actual project has on your workforce, budget and schedule.

Constraints to Consider-6Facilities, equipment and infrastructure:Will the required equipment and facilities be available within the projects timeframe?Document your facilities, equipment and infrastructure constraints for the project well in the statement of work (SOW) as part of the scope statement, because these constraints will limit what can be done in the project.

Tying It All TogetherProject risks and constraints should be accounted for before the project gets underway.Some projects should simply not happen. Be careful of inheriting problem projects.The impossible stays impossible, no matter how enthusiastic and motivated the project manager and the project team are.