QUESTION 4

A good project manager is one who plans for risks and is ready to mitigate risks in the event of their occurrence. Risk is the possibility of something bad happening. Risk involves uncertainty about the effects/implications of an activity with respect to something that people value, often focusing on negative, undesirable consequences. Many different definitions of risk have been proposed, however, international standard definition of risk for common understanding in different applications is effect of uncertainty on objectives. Required:

a. Distinguish between quantitative and qualitative assessments of risks. (8 marks)

b. Explain any three sources of risks in projects. (6 marks)

c. Some authors define risk as An event that, if it occurs, causes either a positive or negative impact on a project Explain how a risk may cause a positive impact on a project. (6 marks)