Question

At the corporate (business) organization level, projects can be divided into two broad phases: the construction or development phase and the operational or commercialization phase. The project risk management process should cover both phases to ensure organizational success. Explain your own comprehension on the following points:

Project risk during construction phase: (Select the correct option)
a. Financial risks
b. Technical risks
c. Resource risks
d. All of the above

Answer 1

Project risk during the construction phase includes financial risks, technical risks, and resource risks, all of which must be managed for successful project completion.

Step-by-step explanation:

At the organizational level, project risk management is essential for a successful outcome, covering both the construction phase and the operational phase. During the construction phase, several types of risks can impact a project. These include:

• Financial risks, which pertain to budget overruns, funding liquidity, and fluctuations in financial markets affecting the project's capital.
• Technical risks, associated with the potential flaws in design, technology failure, or issues in project specifications.
• Resource risks, such as shortages in labor or materials, supply chain disruptions, and issues with subcontractors or vendors.

All of these risks demonstrate the multifaceted nature of project management during the construction phase and underline the importance of a comprehensive risk management strategy that encompasses financial risks, technical risks, and resource risks.