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What are the different types of project risks?

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I know that that there are two major types of risks, internal and external, but I would like to go to a more granular level. Can you list all the types of risks that can face a construction project in particular?
asked 3 years ago by anonymous

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Here's a breakdown of all the possible risks I know of:

Internal Risks

- Scheduling Risks: The project manager underestimated the length of tasks and they are just taking more time. Schedule risks are accounted for in the contingency in the schedule.

- Cost Risks: Scheduling risks often lead to cost risks, a budget contingency plan needs to be drafted to handle cost risks. Cost risks may also result from missing requirements (for example, in a construction project, the project manager did not gather the requirement properly, and misses that the floor must be made out of marble, which greatly increases the costs of the project).

- Technology Risks: For example, choosing an obsolete technology to develop the project.

- Business process risks: Which include governance risks, management risks, and operational risks (purchasing [paying too much for the supplies], marketing [weak marketing of the product], and selling risks [weak distribution of the product]).

External Risks:

- Legal Risks: For example, a building is being constructed on "questionable" land. This will result in legal battles and will divert the attention from making the project succeed to resolving the legal issues.

- Competition Risks: Another company is trying to do the same thing (usually for less).

- Market Risks: Includes inflation, recession, bank interest rates, unemployment, etc...

- Acts of Nature Risks: Floods, earthquakes, and other natural catastrophes.

- Country Risks: Including wars, civil unrests, blockades, corruption.
answered 3 years ago by humblepm (17,390 points) edited 3 years ago by humblepm

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