The downside risk on projects is almost always more than the upside risk. Managing this risk is one the fundamentals of good project management practice. I have found that the more complex, large, constrained and mission-critical a project is, the greater is the need for structured risk management. Proper risk management entails a lot of work because it is much more than putting charts and weighted-average spreadsheets together. It involves active participation by team members and requires a dogged pursuit of issues, facts and alternatives by the project team. Risks have to be recognized, managed, reported, and mitigated. Detailed risk management requires follow-through with project sponsors and capturing information that relates to the project’s contractual drivers, economic factors, organizational resources and technical deliverables. It also demands a realistic understanding of the team’s capabilities along with the limits of the project’s supply chain.
Commercial risks include –
– Competitive Forces