Final answer:
Project managers avoid firm commitments on budget, timelines, and resource needs due to risk factors, the need for flexibility, and potential impact on funding. This caution reflects an understanding of the complexities of project management. Similarly, investors in startup firms manage risks by personally knowing the managers and the business plan.
Step-by-step explanation:
Experienced project managers often avoid making firm commitments on a project's budget, timelines, and resource needs because of the risk factors associated with a specific project. Making firm commitments without considering these risks can lead to unrealistic expectations and failure to accommodate unforeseen changes. This is particularly relevant when engaging staff who may need to balance project work with other funded projects. Financial considerations, such as potential impacts on funding, must also be accounted for. These complexities and the need for flexibility in planning underscore the importance of a risk-aware approach to project management.
Startup firms also exemplify how risk and uncertain information factor into planning and commitments. Founders have a belief in their firm's prospects often demonstrated by investing their own money. However, early-stage investments acknowledge the risks and require personal knowledge of the managers and the business plan to help mitigate uncertainties associated with startups.