Final answer:
The project team must either invest in mitigation strategies early on to manage relevant risk or be prepared to accept significant consequences later. This is related to the concept of asymmetric risk, where the potential negative impact of an unaddressed risk exponentially outweighs the initial prevention costs.
Step-by-step explanation:
In determining relevant risk and formulating proactive strategies for their mitigation, the project team can pay a little in terms of extra time and cost initially, or it must be prepared to accept the consequences. This approach aligns with the concept of asymmetric risk, where the potential negative impact of not addressing a risk can be far greater than the cost of taking precautions—even if those risks appear to have a low probability. A common practice in project management is to invest in risk mitigation strategies upfront, which may include additional planning, resource allocation, and buy-in from stakeholders.
The wisdom hidden in the idiom "a stitch in time saves nine" applies here, indicating that proactive measures can prevent larger problems down the road. If these measures are skipped, the team must be ready to face the potential fallout, which can include significant cost overruns, missed deadlines or even project failure. Hence, taking the time to identify and acknowledge risks early on is essential in steering the project towards success.