Question

Can an execution risk become a strategic risk? Can a strategic risk become an execution risk?...

Can an execution risk become a strategic risk? Can a strategic risk become an execution risk? Provide an example please?

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Answer #1

A risk during the execution of the project will reflect the strategy for the project and the strategy might also be effected by execution. Hence execution risk becomes strategic risk. While making a strategy if a risk is taken or occurs and if not solved then it also effects the waythe project is handled and executed . Hence a strategic risk also becomes an execution risk. For example while planning for a construction project it is decided that a certificate need not be applied for and can be managed, While construction also we will have to manage without the certificate which is a risk for the project. Likewise during the execution if we find out that we cannot apply for that certificate and need to proceed without it, we will have to change our coursewhich also effects the plan.

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