Project Management can be a fickle task master.
You have listened to the client’s expectations, you have budgeted meticulously, and you think you have mastered the scope creep, but around any corner could be less obvious project risks that can derail your budget, mess with your timeline, and ruin your reputation. These hidden risks are things that take you by surprise and you never saw coming.
In this article, we’ll go over some of these hidden risks and some ideas to prevent them from happening.
Third Party Changes
When your entire project relies on a third-party platform (e.g., API, Host provider, or a SaaS tool), you’re putting a lot of faith in their reputation for consistent performance and pricing.
If something happens and their services go down, this can halt your project, you can miss deadlines, not to mention the risk of data loss and an unhappy client.
A Dose Of Prevention:
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Insist on data export or backup clauses in the contracts.
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Before the project kicks off, conduct a vendor dependency audit to have a look at their history of compliance with contract terms, security regulations, and industry regulations.
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Have a Contingency plan written into the contract so you know what to do if it happens.
The Human Factor
As with any business, you find yourself relying on others to do their part in the master plan.
If a freelancer or subcontractor is suddenly unavailable, delivers work that is not up to your standards, or misses deadlines, this can throw your whole project off course. The project will need to be halted til you can get a last-minute replacement, get the work up to standards, and this will change budget plans and timelines.
A Dose Of Prevention:
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When vetting your subcontractors or freelancers, be vigilant. A small price tag isn't always the best choice. Speak with others who have worked with them and get the full scope of their work ethic and quality of work.
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Get a list of backup talent for critical parts of the project so you have someone to call just in case.
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In your subcontractor agreements, develop payment schedules for more accountability. Pay only once the work is complete at each stage, or something similar.
Unforeseen Permit and Licensing Issues
Do your research and be sure you obtain the correct permits or licenses required for the project.
Any projects that involve a physical location, drone usage, or specific intellectual property will require permits or special licensing, and if these are not in place, you may face not only delays but also cease and desist orders or copyright claims.
This could be a major interference with your timeline and put the whole project at risk, so pay due diligence to these aspects.
A Dose Of Prevention:
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Make a list of all required permits and licensing needed during your planning phase.
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Have consultations with legal experts who can walk you through unfamiliar project territory and ensure all is in place beforehand.
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Be sure to factor in any wait times you may have to contend with in obtaining any of these permits or licenses.
On-Site Safety Risks
Of course, the safety of the participants, actors, stakeholders, and whoever may be on site during the project is paramount.
If you’re filming, installing signage, or just setting up your event, you need to be aware of the terrain, the hazards, and the risks that will be all around you. Say you are at a construction site and there is an unshored trench collapse.
This could create a catastrophic injury, fatal accident, and massive project shut-downs, not to mention a plethora of investigations that can lead to legal cases and accountability issues.
A Dose Of Prevention:
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Before stepping on site, make sure all safety protocols are being adhered to – safety is the number one priority. And it’s your job to make sure those protocols are being followed.
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A simple mishap or oversight could turn into an expensive and legally complex lawsuit.
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Be sure to confirm that any excavation work on the site was performed by licensed, safety-compliant crews.
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Be sure that all equipment and heavy machinery are inspected and are in working condition.
Construction sites are filled with various variables that can’t be predicted or fully prepared for. And while not all of them are dangerous, some are.
Something as simple as an unreinforced trench can, in a moment, turn into a collapsed hazard. And if a person gets injured because of that, you mightn’t be looking at just a showdown, but a full-blown trench collapse injury claim that could end up crippling or even shutting down the entire project.
Bad Reputation
If you fall victim to any hidden risks, the public backlash could ruin your reputation.
Social media could catch a whiff of what has happened, and the aftermath of that kind of storm could destroy your company's brand as well as your own personally. There could be a loss of revenue from future jobs, and what could be costly damage control measures.
A Dose Of Prevention:
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Your research must be thorough. Vet your partners, influencers, and contractors for any past controversial history.
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Pre-Draft a crisis plan.
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Conduct a sensitivity read on all public elements of the project to see if you can pinpoint an issue that might prevent a successful finished project.
Conclusion
Project Management has many steps, and in order to have a successful finished project, it’d help if you get your soothsaying skills together and anticipate all the hidden risks along the way.
But, since we are not all magical beings, use these practical steps to hone in on everything you can. Have hidden risk brainstorming meetings, do your research, and make sure everyone knows what is going on and what their part is.
Protect reputations, communicate fully with everybody, and have a team you can rely on to help find a happy client and a project you can be proud of.
