Project managers have always encountered

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Project managers have always encountered the unexpected risk issue. They have to be proactive in preparing for these possible interruptions. The list of risk issues can be infinite. We start with a list of possibilities and then apply the science of probability. An example would be the likely hood of an earthquake in Florida would be low but in California would be high. The number of rain days in Arizona would be minimal but in Jamaica would be high. The insurance companies are experts at probable risk that’s why flood insurance is cheap in Kansas and almost impossible to buy in Louisiana. As project managers we must account for the probable and set aside contingency plans to minimize the negative effects when and if they occur. These cost and or events are at a higher chance possibility in the early stages of the project and decrease as the project moves towards completion. The most difficult risk to predict are economic down turns, competitive market, and technology failure. Risk issues can destroy a project when all seems to be going well and on schedule.

Reference no: EM132262309

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