Project Manegement, Final - Assignment Example

Risk Event Graph Risk cost High probability of cost to fix risk Risk occurring Low Beginning Project life cycle End Project is an undertaking that has a start and completion time (Kendrick, 2011). Therefore, generally risk is greater at the initial stage of the project implementation and tends to decline as the time progresses. The risk event graph enables project managers to estimate the chances of occurrence of risk at different times and decide on the resources they require for reducing the chances of risk (Dinsmore and, Cabanis-Brewin, 2011).

This is usually essential at the initial stage of project implementation so that managers can mitigate the perceived risks and where possible eliminate it. The risk is usually high at the early phase of project implementation as a few expenses are sustained in mitigating the perceived risk (Wallace and Webber, 2011). However, as time progresses, the owner of the project injects more resources in mitigating consequences of the project hence reduction in risk. Therefore, as more resources are injected in the project, the anticipated risk declines proportionately.

This is because the perceived risk is due to the chances that the result of the project activities may yield undesired results (Dinsmore and, Cabanis-Brewin, 2011). Therefore, as the project is being implemented practically, the events become realistic without the anticipation of risk. This tends to lower the anticipated risk progressively towards the completion of the project (Kendrick, 2011). Risk event graph provides the project managers with a chance to estimate the risk associated with the project at the starting period so that they can take appropriate measure to reduce the anticipated risk before Types of risks Environmental risks: There is a probability of experiencing delays as a result of vagaries of weather hence casing unexpected delays in the completion of the project (Wallace and Webber, 2011).

The workers are exposed to numerous dangers associated with injuries hence this may add cost to the general contractor (Dinsmore and, Cabanis-Brewin, 2011). This may result to inability to meet the client need at the agreed value of the houses. Personnel risk: The contractor is dealing with part time bookkeeper hence the bookkeeper may not be available during the project period (Kendrick, 2011). Since the contractor depends on hired subcontractors, there is a risk that during the contract period there may be some shortage of subcontractors hence the work may not b completed within the planned duration Construction risk: The suppliers of materials required for construction activities may fail to deliver the materials and equipment hence causing the contractor to delay in completing the work (Wallace and Webber, 2011).

Market risk: The price of the construction materials and equipment may hike hence increasing the expenses of completing the project (Wallace and Webber, 2011). Political risk: The approval of the project may be delayed by the authority hence causing delay in commence and ending period of the project to fail to adhere to the set schedule (Kendrick, 2011). This may result to an imposition of penalty to the contractor as a result of breach of agreement. Design risk: The designers of the project may