Question

part 4 Question 2

Which of the following statement used to describe project risk (justify your answer):

1. Highest in the beginning and end of the project and lowest when the project is being executed
2. Highest in the beginning and decreases as the project progresses
3. Low in the beginning, maximum when the tasks of the project are being executed.
4. Uniform throughout the project

Answer 1

Statement 2 is the correct answer

The risk of the project is the highest during the initial phase of the project and gradually lowers down as the project progresses. The risk turns out to be the lowest during the last phase of the project. Thus the captioned statement is correct. This happens due to the fact that there are a lot of factors unknown when the project starts that is the reason why the project risk is the highest at the start of the project.

Analysis of other statements

Statement 1

The risk of the project is significantly high when the project is being executed therefore the statement that project risk is lowest when the project is being executed is false.

Statement 3

This statement is wrong as the risk of the project is the highest at the initial phase among all other phases of the project.

Statement 4

This statement is wrong as the risk of the project is not uniformly spread over the lifetime of the project, rather the risk is the maximum at the beginning o the project and gradually slows down as the stages pass away.