BUSINESS RISK PROJECT MANAGEMENT - EVALUATION

A. What is risk-sharing and provide an example? HINT: Many organizations that work on international projects will reduce political, legal, labor, and other risk types associated with international projects by developing a joint venture with a company located in that country.

B. What is risk-reduction and why is so important in the U.S. Small business and global markets. HINT: managing a high-risk activity can often predict problems and find solutions that prevent the activities from having a negative impact on the project.

C. Explain Risk-transfer and why is it such an important tactic in shifting the risk from the project to another party? HINT: The purchase of insurance on certain items is a risk-transfer method. The risk is transferred from the project to the insurance company.