Question

It is important for project managers to manage risk over the complete project lifecycle. However, many project managers report that it is difficult to sustain team members’ and other stakeholders’ interest in managing risk once the project is underway.

1. Why do project stakeholders lose interest in project risk once the project is underway? Describe at least 2 reasons.                                              (1 mark)

2. What are the risks/dangers of not doing risk analysis as the project progresses?

Answer 1

Question 1

Project stakeholders usually shifts their interest and priorities during project execution wants to discuss identified. Because:

If there is a risk identified and no proper risk management measures are taken, the project failure may occur.

Sometimes the cultural norms of the organization is to focus only on the moving forward of the projects without any proper and timely risk management.

Question 2

Catastrophic Losses

The failure to adequately evaluate, prevent and minimize risk of an ongoing project can ruin the entire organization.

There may be lose of market share since one failed to predict the risks of changing conditions.

Lack of transparency

If the project risks are ignored or hidden from employees, then the business owners could miss out on vital contributions from the staff. It may also create barriers between themselves and staff. These opaque barriers don't build trust. They don't bring employees on board with the notion that business risk management is everyone's job.

Late-running of Projects

Unforeseen risk or lack of risk analysis may significantly slow down a project because it takes time to identify them, understand, analyze and prepare management plans to monitor, act on and track them.

Overspent Budgets

Risk management involves money. However, the cost of dealing with poor risk management if a risk materializes and becomes a real issue for your business, is normally far and much more to it. Hence overspending is required, if budgets may be required.

Project Failure

Ultimately, the worst case scenario for failing to adequately analyze the risk of an ongoing project is that your project fails. It never completes or never delivers anything of value.

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