Risk management is recognised as an essential tool to tackle the inevitable uncertainty associated with business
and projects at all levels. But it frequently fails to meet expectations, with projects continuing to run late, over
budget or under performing, and business not gaining the expected benefits.
The evident disconnect which often occurs between strategic vision and tactical project delivery typically arises
from poorly defined project objectives and inadequate attention to the proactive management of risks that could
affect those objectives. One of the main failings in the traditional approach to risk management arises from a
narrow focus on the downside, restricted to the technical or operational field, addressing tactical threats to
processes, performance or people.
This shortcoming can be overcome by widening the scope of risk management to encompass both strategic risks
and upside opportunities, creating an integrated approach which can bridge the gap between strategy and tactics.
Integrated risk management addresses risks across a variety of levels in the organisation, including strategy and
tactics, and covering both opportunity and threat. Effective implementation of integrated risk management can
produce a number of benefits to the organisation which are not available from the typical limited-scope risk
process.
This paper explores how to expand risk management to deliver strategic advantage while retaining its use as a
tactical tool.