Risk refers to any event or condition that can negatively affect a project. It involves uncertainty and can have both positive and negative impacts on project outcomes.
What is Risk in Project Management
Effective risk management enables project managers to evaluate strengths, weaknesses, ensuring they are prepared to respond to unforeseen situations
Importance of Risk Management
Financial risk involves costs and money-related issues. Scope creep, inflation, and poor budget planning are common causes.
Financial Risk
Schedule risk relates to time and affects project timelines. Unforeseen events, team performance issues, and additional deliverables can delay projects
Schedule Risk
Performance risk occurs when a project fails to produce desired results, impacting overall company success.
Performance Risk
Operational risk involves dysfunction in project operations, like production or supply chain issues. Legal risk includes compliance with government policies and internal legal matters.
Operational and Legal Risks
Project risks are interconnected. Identifying, assessing, and managing these risks is essential to prevent them from derailing the project