Recently I got a question from some of my friends, what is the difference between risks and issues?

When I thought about it, I felt that it is indeed a confusing topic! There are some confusing questions, like –

• Do issues lead to risks?
• Or do risks lead to issues?
• Can issues be forecasted?
• Are unplanned risks = issues?

Let me express my views. To make the explanation easy, let’s take an example….

Because I am now 27 year old and my parents and relatives have started hunting a life partner for me, I may get married soon.

Here the risk is – “I may get married soon”. It’s an uncertain event, therefore existing in future. It is not guaranteed. The reason that this uncertainty exists is due to some constraints (e.g. I am already 27 year old – this is not an issue!).

So, risks may exist due to various reasons like assumptions, constraints or even enterprise environmental factors. So, if a project must finish before Christmas then this is not an issue but a constraint. This year monsoon will be better so interest rates may be favorable. This is risk based on an assumption. And so on…

Now when this risk will occur, it will be an issue :-). So, “I am now married” is not a risk but an issue. This is a reality now. So, issue always exists in present or past, never in future (unlike risk). That means, if a risk occurs and if it was perceived as a threat then it becomes an issue.

Now, because of an issue, it may further lead to one or more uncertainties. For example – because I am married now, I may not be able to spend same amount of time with my friends or my expenses may double up or I may have to spend hours in shopping, etc. Each one of these three is a separate uncertainty (risk). None of these are guaranteed, but chances could be high or low.

Let’s revisit the above questions –

• Do issues lead to risks? – yes, they may lead to more uncertainties. But only issues will not be the cause of risks
• Do risks lead to issues? – if it is a threat and if it occurs, then yes
• Can issues be forecasted? – yes, but not all of them. We are humans, can’t foresee all likely issues! But some issues can (or should) be foreseen (e.g. I may have to spend hours in shopping) – these are nothing but risks
• We can do something to minimize their chances or impact if they were to occur
• Are unplanned risks = issues? Every issue always exists as a risk once upon a time. Either we could see it, tried to prevent it but it still occurred or we just could not see it!

I think we can see a co-relation between issue log and risk register. If we have a HUGE risk register (which is rare 🙂 ) and are able to minimize occurrence of many of those risks, then we will have a small issue log. And if we have a BIG issue log, then you will find that most of those entries should have existed in risk register, once upon a time! Either we didn’t see those issues before they occurred (i.e. captured them as risks) or could see them but didn’t do a good job in reducing their chance of occurring or minimizing their impact.

I hope I haven’t added to your confusion 🙂

—- चिंगुडे