Risk categories might reflect the type of industry or application area in which the project exists. For example, information technology projects will likely have many risks that fall into the technical category, whereas construction projects might be more subject to risks that fall into the external risks category. The categories do not have to be industry specific, however. Keep in mind that project management, for example, is a risk for every project in every industry. You can find a description of each of the categories next:
Technical/quality/performance risks Technical, quality, or performance risks include risks associated with unproven technology, complex technology, or changes to technology anticipated during the course of the project. Performance risks might include unrealistic performance goals. Perhaps one of the project deliverables concerns a component manufactured to specific performance standards that have never been achieved. That's a performance risk.
Project management risks The project management risk category includes improper schedule and resource planning, poor project planning, and improper or poor project management disciplines or methodologies.
Organizational risks The organizational risk category can include resource conflicts because of multiple projects occurring at the same time in the organization; scope, time, and cost objectives that are unrealistic given the organization's resources or structure; and lack of funding for the project or diverting funds from this project to other projects.
External risks The external risk category includes those aspects that are external to the project, such as new laws or regulations, labor issues, weather, changes in ownership, and foreign policy for projects performed in other countries. Catastrophic risks—known as force majeure—are usually outside the scope of Plan Risk Management and instead require disaster recovery techniques. Force majeure includes events such as earthquakes, meteorites, volcanoes, floods, civil unrest, terrorism, and so on.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.