Essays on Causes of Risks in Projects, Types of Risks Coursework

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The paper "Causes of Risks in Projects, Types of Risks " is a great example of management coursework. Every undertaking in business has an element of risk involved in it. No matter the size of the business activity, there is an element of risk which should be analysed then weighed against the rewards that are potentially attainable. To become effective, an organization should identify those risks to take and the risks that should be avoided. A risk, therefore, is the probability of damage, liability, loss or any other negative outcome that is caused by either external or internal weaknesses and can be avoided through anticipatory actions (BusinessDictionary. com, 2015).

This paper thus sets out to critically analyse the causes of risks in projects, the types of risks that occur and the ways in which the risks can be minimized using good project management practices. Causes of risks in a project A risk is an event of the future that may or may not happen. In case, it does occur it will have a bearing on the project quality, budget, scope or schedule.

If it occurs, it may result in one or more impacts. All the activities in a project bear with them an element of risk which could affect the project for better or worse (Newton, 2015, p. 9). Risks comprise of both threats and opportunities that project managers need to assess. In a project, risks are caused by several factors. Some include Costs. Estimation of the costs of materials can be a risk in a project. If the project team planned to purchase material at a particular cost and time and then it is not realized, it becomes costly and a challenge to the project because you have to wait for this particular item for longer time (Scheinin, 2004, p.

3). Another source of risk in a project is the material and equipment use. This type of risk usually arises due to the failure of the required components to be delivered on time, failure of the equipment and also due to limited access to the development environment (Dwevedi, 2012). The scope and schedule of the project may also become other risk factors in a project.

The schedule of the project becomes a risk factor in the project if you fail to get the required hardware or software as planned. The scope of the project is a risk as it is concerned with the work that is covered and that which is not yet covered. It is a greater risk in case the main important element of the project is missed. This will hugely escalate the cost of the project (Dwevedi, 2012). Quality and customers are other major sources of risks in a project.

The deliverables of the project should be able to meet the required quality and the implied customer specifications. Failure to meet these will lead to other devastating effects on the different aspects of the project. Other causes of risk factors in the project include poor communication, poor planning, uncertainty, lack of proper documentation and lack of proper knowledge management (BrainReactions. net, 2007). Types of risks in a Project As the project goes through different life cycles, it encounters different risks. Some of the risks have the potential of causing a devastating effect on the project while others can be used as opportunity ventures so as to escalate the project to a better level.

Most of the opportunities bear with them some level of uncertainty that must be harnessed to realize the opportunity inherent. The major duty of the project manager is to ensure that the risks are maintained at minimal standards so that they do not ruin the project. The major risks involved in the project include; scope risk, scheduling risk, resource risk and technology risk.


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