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It doesn’t matter if you are new to project management or a seasoned expert, you will run into a problem with explaining the difference between issues and risks.
And sometimes when you’re juggling multiple projects and tasks, the key differences between risks and issues can become unclear.
Next thing you know, your project team is treating every problem the same way, and your project management efforts aren’t as effective as they could be. Don’t worry, that’s what this article and I are here for.
I’m going to quickly explain the crucial difference between risks and issues, and why mastering this distinction is essential for managing projects successfully.
What's the Difference Between Issues and Risks?
At its most basic of definitions, a project risk is:
An uncertain event that may or may not occur in the future.
While an issue is:
A current problem that has already happened and is actively affecting your project’s objectives right now.
Think of a project risk as potential problems requiring proactive planning, while issues demand immediate action.
Let’s add a little more depth to that— risk management involves:
- Identifying risks
- Qualitatively and Quantitatively analyzing those risks
- Determing responses to those risks
- Monitoring and controlling each risk
- Then, finally Closing each risk out by the end of the project
Issue management, conversely, focuses on resolve issues that are already impacting your project’s budget, schedule, and scope!
And finally, for those seasoned project managers among you, risks represent uncertain events that can have a positive or negative effect on project objectives.
These might include operational risks, organizational risks, and external factors that could impact your production process. Issues, on the other hand, are known problems requiring immediate attention through your issue log and issues register.
If you’re only at the first level of understanding, rest assured, you’ll master these concepts.
Consider how an engineer approaches the development of a more complicated airplane – they must balance managing risks related to new technologies and new features while dealing with current communication gaps and internal issues.
Why Should the Project Team Care About This Distinction?
Yes, I’ve actually heard this — which is why we are addressing this question.
I’m all about effective project planning and even more about minimizing processes to streamline work.
But I can’t make it to where you can skip managing risks!
So, let me give you some compelling reasons why this distinction matters for your project success.
Understanding the difference between risks and issues is important because it directly impacts your project’s success. Let me show you with a simple example that we can all relate to:
Imagine you’re managing a home renovation project. In Scenario A, the project manager treats everything as an issue to be dealt with when it happens. In Scenario B, the project manager properly distinguishes between risks and issues.
Scenario A (Everything is an “Issue”):
Day 1: Starts demolition without checking for potential pipe locations
Day 2: Hits a water pipe – work stops for emergency plumber ($2,000 extra)
Day 3: Discovers electrical wiring needs updating – another delay
Day 4: Material costs have increased – budget overrun
Result: Project is delayed by 2 weeks and 40% over budget
Scenario B (Proper Risk and Issue Management):
Planning Phase: Identifies risks including:
Potential hidden pipes (Risk)
Possible electrical updates needed (Risk)
Material cost fluctuations (Risk)
Before Day 1:
Uses pipe detector and consulting plumber’s drawings
Gets electrical inspection
Pre-orders critical materials
During Execution:
Encounters unexpected wall damage (Issue) – but has contingency budget ready
Handles it immediately without affecting critical path
Result: Project completed on time, only 5% over budget
This simple example shows why proper distinction matters:
Cost Impact: Scenario A’s reactive approach cost 35% more than Scenario B’s proactive approach
Time Management: Scenario B’s risk identification prevented major delays
Stakeholder Confidence: Scenario B’s stakeholders were informed of potential issues and mitigation plans upfront
Team Morale: Scenario B’s team worked more efficiently with fewer surprises
Career Growth: Scenario B’s project manager demonstrated professional risk management capabilities that executives notice
For those studying for the PMP or PMI-RMP: Notice how this aligns with PMI’s emphasis on proactive risk management and the difference between risk (uncertain future event) versus issue (current problem).
This distinction is frequently tested in certification exams through situational questions.
For experienced PMs: Consider how many of your “emergency” issues could have been identified as risks earlier. Studies show that 80% of project issues were identifiable as risks during planning, but only 20% are typically captured in risk registers. (Pareto’s Principle!)
The truth is, successful project management requires both proactive risk management and efficient issue resolution. Which is why your organization brought you on – to bring value and avoid the problems!
Project Risk and Issues in the Project Management Context
Scenario 1: The Reactive Approach
Now, lets say you are, a mid-sized retail company, implementing a new inventory management system. The project manager (let’s call him Tom) had a “we’ll deal with problems as they come” mentality. Here’s what happened:
Week 1: The system integration began without proper compatibility testing
Week 2: Major data migration issues surfaced during the first transfer attempt
Week 3: Legacy system users couldn’t access critical data
Week 4: Emergency budget requests for additional development work
Final Result: Three-month delay, 150% over budget, and frustrated stakeholders
Scenario 2: The Proactive Approach
Another team, a similar-sized company in the same industry, took a different approach. Their project manager (Sarah) understood the critical difference between risks and issues. Here’s her approach:
Risk Identification Phase:
Conducted thorough system compatibility assessment
Interviewed legacy system users about critical functionalities
Reviewed previous implementation projects for common pitfalls
Created detailed data mapping documentation
Risk Analysis & Planning:
Assessed likelihood and impact of each identified risk
Example Risk Register Entry:
Risk: Legacy system data format incompatibility
Probability: High (70%)
Impact: High (Could delay project by 2+ months)
Mitigation: Develop data conversion tools before migration
Contingency: Maintain parallel systems during transition
Trigger: Failed test migration of >2% of data
Risk Response Implementation:
Developed and tested data conversion tools
Created user acceptance testing protocols
Established clear communication channels
Set up weekly risk review meetings
When Issues Did Arise:
Minor data formatting issues (Expected Risk → Managed Issue)
Pre-developed conversion tools deployed
Resolution time: 2 hours
Impact: Minimal, within planned contingency
Unexpected server downtime (New Issue)
Immediate escalation to IT support
Resolution time: 4 hours
Impact: Minimal due to built-in schedule buffer
Final Results:
Project completed on schedule
5% under budget
High stakeholder satisfaction
Team confidence boosted for future projects
So, Here's My 5 Tips for Better Risk Management
Raise your hand if you’re still working on effectively managing risks and issues in your projects!
Be honest! 🙋♀️🙋♂️
Here are some proven strategies:
Maintain separate risk register and issue log systems
Develop clear processes for both risks identified and current problems
Train your project team on handling both operational risks and external issues
Document lessons learned to improve future project planning
Regularly review and update your contingency plans
All you have to do it implement these strategies in each of your projects to save yourself some time, money, and late Friday nights behind your computer!
Download my Risk Register
I’ve prebuilt a formatted risk register you can use in your future project.
Go ahead and download it here!
Key Takeaways
Let’s wrap this up, shall we?
When looking at the difference between issues and risks, you must remember that risks in project management are future uncertainties requiring proactive management, while issues are current problems needing immediate resolution.
Understanding and managing them differently is crucial for project success.
At 44RiskPM, I make it my mission to help project managers develop robust risk management skills that lead to more successful projects and confident project leadership.
Would you like to enhance your project management efforts?
Download my free Project Risk Assessment Template now.
Download at: https://forty-four-pm.kit.com/riskassessment
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