Project risks include all kinds of risks that may in any way jeopardize the project. Key project risks are those that threaten the goal, time and project costs. (see the magic triangle of project management). Project risks often occur due to changes in the project, due to poor communication on the project (communication risks of the project), and due to changes of external circumstances and conditions (external risks and limitations of the project). Scope of the project also significantly affects the project risks - e.g. technological projects have considerable technological risks, projects with the environmental impact have environmental project risks (see the list of the different types of risks).
Project Risks in practice: Project Risk Management is a systematic activity, which aims to reduce the likelihood or reduce the impact of any risks during the project. Project Risk Management takes place in four interrelated phases, namely:
- Project risk identification (in the phase of project planning - as part of Project plan)
- Project risk evaluation
- Mastering project risks (or their mitigation)
- Monitoring of potential project risks
In practice is crucial the risk prevention, especially in the planning phase (Project Risk Plan), and the ability of the project manager to early identify risks, and by his impact to prevent potential problems. Equally important is the ability to manage changes during the project, which are the most common source of project risks.