- Explain the difference between activity risk and project risk.
A risk in project management refers to an aspect or an uncertain event that may lead to the failure to meet the set objective(s) or have a negative effect on the partial or general outcome. A project risk can involve both internal and external events that impede the overall success of the project resulting to a loss in the company that is undertaking it (Kendrick, 2015). An activity risk, on the other hand, refers to an uncertain occasion that hinders the success of a specific activity within a project (Kendrick, 2015). PLAGIARIZED SAMPLE: ORDER YOUR PAPER NOW
Projects are prone to various risks both internal and external. There are five main sources of project risks according to Kendrick (2015) namely:
- Legislative issues
- Political sources
- Natural sources
- Inappropriate staffing
- Economic sources
- What are the five main sources of project risk, and why is it important to analyze these sources?
The purpose of identifying the risk sources is to help identify the potential risks before they occur (Kendrick, 2015). This helps in planning for risk management activities to mitigate the negative impacts that may occur. It gives room for better decision making processes as it is the only weapon that can work against project catastrophes. Also, continuous analysis of the possible risk sources helps to manage high priority risks. Essentially, if a team does not act aggressively to conquer possible risks, the risks will affect its operations.
- What is the importance of surveys for assessing project risks? Who do you survey? Why?
Surveys are an unbiased approach that can be applied to ensure effective decision-making. A firm should conduct a survey to collect unbiased data which can be used in informing vital decisions. It is highly recommended that surveys be conducted randomly on all stakeholders of the company. Also, the clients and other external sources should be engaged in the process as they can give helpful insights concerning project risks. Surveying a range of individuals helps uncover objective information evoke discussions and comparing results where necessary. PLAGIARIZED SAMPLE: ORDER YOUR PAPER NOW
Kendrick, T. (2015). Identifying and managing project risk: Essential tools for failure-proofing your project (3rd Ed.). New York, NY: AMACOM.