Likelihood Of A Risk Event Occurring And The Cost Of Fixing The Risk Event As A Project Proceeds Through Its Life Cycle?


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Greg Allen Profile
Greg Allen answered
The likelihood of a risk event occurring varies considerably due to many changing factors. These can change due to what type of industry the project is in, and how risky the area is. For example, a project in the building and construction industry is going to have a lot of risk factors. These could include the safety of the heavy machinery used, the competence of the builders themselves and the overall quality of the build. Compare this to a project in graphic design, for example, the physical risks are going to be a lot less that those of the building site. They could include the deal falling through or being leased to someone else, but these are not physical risks.
In terms of the cost of fixing a risk event, again this will vary greatly depending on the scale and seriousness of the risk in hand. In terms of insurance, the more accidents you have, the more costly it will be in the long run.
Over the lifespan of the project, a risk is more likely to occur over a long project simply because there is more time for risks to develop. On a building site, for example, a long building project could develop risks through shoddy work and the risk of something happening to the structure of the build will increase over time. Again, though, the likelihood of any risk varies considerably because there are so many different factors to consider, especially in the construction industry. Preventative measures could also be taken to stop a risk event occurring and this, although it could be costly, would probably cost less in the long run than having to fix a risk event occurring that was not prepared for. Likelihood of risks developing varies a lot depending on the industry.
Anonymous Profile
Anonymous answered
Risk event occurring and the cost of fixing the risk event as a project proceeds through its life cycle

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