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The percentage of cost risk could range high or low in projects of any size. A...

The percentage of cost risk could range high or low in projects of any size. A smaller project could have a percentage of cost risk from building materials cost changing as a larger project may have. The same would go for a larger project that may have less cost risk due to more contingency funding versus a smaller project. Do you agree?

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Cost risk is the risk associated with the project budget where the project costs more than budgeted. It can lead to performance risk if cost overruns lead to reductions in scope or quality. Cost risk can also lead to schedule risk if the schedule is extended because not enough funds are available to complete the project on time. Hence, the percentage of cost risk could range high or low in projects of any size. Yes, I agree with the statement that a smaller project could have a percentage of cost risk from building materials cost changing as a larger project may have. The same would go for a larger project that may have less cost risk due to more contingency funding versus a smaller project because of the following reasons: 1. Cost associated with the smaller project would have liability of the few shareholders whereas large corporations have the greater number of shareholders who helps in minimizing the risk. 2. 3. More opportunities for advancement in larger company 4. More diversified revenue streams/risk profile in the larger company Large company have the Specialization of roles which actually reduces the cost of risk.5. The capital is less in the case of smaller organization according to which risk is more.

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