CLASSES OF RISK
Pure risks: Risks that act as threats to projectsBusiness risks: Risks normal to businessesOpportunity risks: Risks with good outcome.
CAUSES OF RISK
Project risk analysis from root cause analysis (fishbone) diagram helps the project leader tofully understand the causes, nature and the extent of risks (Kendrick, 2003). Briner et al(2001) suggested that for a project manager to avoid being caught in a web of difficulties, theneed to anticipate and analyse the potential impact of risk is important.
Inadequate feasibility studies
Weather/ climatic conditions
Evaluation of project proposal based on price rather than long-term consideration of quality
Lack of skills and knowledge in project and risk management
RISK MANAGEMENT PROCESSES
Risk Planning: Developing and documenting the strategies necessary to handle risks whenthey occur.Risk Assessment: The method of identifying and analysing areas that would help the projectmeet the cost, schedule and performance objective even when risk occur.Risk Handling: It helps to evaluate and select one or more strategies to help put the projectrisk under negligible level.Risk Monitoring: This involves tracking and evaluating the performance of the processesemployed in managing the project risks.
RISK IDENTIFICATION TECHNIQUES