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Ben is the project manager of the YHT project for his company. Alice, one of his team members, is confused about when project risks will happen in the project. Which one of the following statements is the most accurate about when project risk happens?

1) Project risk can happen at any moment.
2) Project risk is always in the future.
3) Project risk happens throughout the project execution.
4) Project risk is uncertain, so no one can predict when the event will happen.

User Tdorno
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1 Answer

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Final answer:

Project risk is always considered to be in the future, as it deals with events that have not yet occurred and may affect the project. Risks are managed throughout the project from start to finish, and good risk management is proactive in controlling these potential future events to ensure project objectives are achieved.

Step-by-step explanation:

The most accurate statement about when project risk happens is 2) Project risk is always in the future. Risk by definition deals with uncertainty and the possibility of an event occurring with potentially positive or negative outcomes affecting project objectives. Risks are concerning events that have not yet happened and may or may not occur, which means they always exist in the future relative to the current point in time.

Project risks are inherent from the inception of the project until its closure. While the impact of the risks may be felt during project execution, their occurrence is essentially in the future. The management of risks involves identifying, analyzing, and responding to risk factors throughout the life of a project and in the best interests of its objectives. Proper risk management implies control of possible future events, and this is proactive rather than reactive. Therefore, this statement acknowledges the traditional understanding of risk in a project management context.

Task deadlines, as mentioned in the reference information, are an excellent example where the risk of not meeting a deadline is a future event potentially impacting project success. Similarly, in the scenario of developing a new video game controller, the risk of missing the holiday season rush is a future event, making planning and risk management crucial to ensuring timely delivery and maximizing sales opportunities.

User Shiniece
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