Types of Risk in Project Management


What is Project Management?

Project Management is a process of initiating, planning, executing, controlling, and directing the work of a team to achieve specific goals in a certain amount of time. The primary challenge of project management is to achieve all of the project goals and tasks within the given period of time.

The primary aim of project management is scope, time, quality and budget. The objective of project management is to produce a project and services as per the desires of the client’s objectives.

Types of Risk in Project Management

There are many types of risk in Project Management. Some are the following:

Cost Risk

Cost risk is one of the biggest risks in project management. Because due to poor cost estimating accuracy and scope creep can shut down the project for the whole time.

Schedule Risk

Schedule Risk means that risks which can be taken place if the project does not complete on time. Because if the project does not complete on time it increases the cost of manufacturing of the project. So, Schedule risk is also considered a big risk.

Performance Risk

Performance risk means that risk which can be take place if the performance of the workers getting down and they are unable to produce results as much as they can.

Market Risk

This risk can be take place due to a change in interest rates, competition, or even foreign exchange.

Legal Risk

If the company is not following legalities and regulations. it can face legal risk and even the project can be seized.

External Risk

External risk includes natural disaster i.e flood, an earthquake, tsunami. This is also a big factor of risk, that’s why company tries to manufacture at a whose place that is affected by natural disaster.