The Sensible 12: No. 11

11. Issues and risks must be addressed quickly and openly.
Every project has risks that are associated with the venture, and every project will have issues that surface along the way. The fact that they occur is not unique, however, how they are addressed is unique to a successful project. It is critical to identify risks at the initiation as well as throughout the project. Immediately upon identification of a risk, develop a plan how you will manage that risk. As issues occur, address them quickly and provide the appropriate visibility to shareholders. Providing
transparency of risks and issues is an important principle of managing a successful project.

This along with communication is the meat of project management. But let's be sensible and approach risk management particularly with an understanding of the probability of risks, from analogous cases, and how to meet the potential cost on a 'diversity' basis. But fundamental is that the project is designed to eliminate as many risks as possible; and that shows up in the schedule!