As product development cycles shrink, and as the products themselves grow move complex, managing risk in a product development project becomes increasingly critical. Effective risk management follows two principles: 1) Start on it at the very beginning of the project, and 2) Go well beyond technical areas to capture anything that could impact success of the project. Thus, risk management starts at the same time the project schedule, budget and specification are created and-just as these items are managed throughout the project-the identified risks receive active, cross-functional management throughout the project. Because each risk item has its own character, each receives a customized risk management plan. Guidelines for generating these plans include addressing, the toughest issues first and providing a productive role for failure.
