What Contributes To Risks In A Work Unit?

It is important to classify risks into appropriate categories. Most work units are responsible for specific projects. Each project will have its associated risks. Risks associated with projects can be classified into following 12 categories:

Operational Risk: Risks of loss due to improper process implementation, failed system or some external events risks. Examples can be failure to address priority conflicts, insufficient resources or no proper subject training, etc.

Schedule Risk: Project schedule get slip when project tasks and schedule release risks are not addressed properly. Schedule risks mainly effect on project and finally on company economy and may lead to project failure.

Budget Risk: Wrong budget estimation or Project scope expansion leads to budget/cost risk. This risk may lead to either a delay in the delivery of the project or sometimes even an incomplete closure of the project.

Business Risk: Non-availability of contracts or purchase order at the start of the project or delay in receiving proper inputs from the customer or business analyst may lead to business risks.

Technical Environment Risk: These are the risks related to the environment under which both the client and the customer work. For example, constantly changing development or production or testing environment can lead to this risk.

Information Security Risk: The risks related to the security of information like confidentiality or integrity of customer’s personal/business data. The access rights/privileges failure will lead to leakage of confidential data.

Programmatic Risks: The external risks beyond the operational limits. These are outside the control of the program. These external events can be running out of funds or changing customer product strategy and priority or government rule changes, etc.

Infrastructure Risk: Improper planning of infrastructure/resources may lead to failure of a project. So, it is important to do proper planning of infrastructure for the efficient development of a project.

Quality and Process Risk: This risk occurs due to incorrect application of processes and deviation guidelines. A possible reason for this is that employees allocated to the project are not trained in the quality processes and procedures adopted by the organisation.

Resource Risk: This risk depends on factors like schedule, staff, budget and facilities. Improper management of any of these factors lead to resource risk.

Supplier Risk: This type of risk may occur when some third-party supplier is involved in the development of the project. This risk occurs due to the uncertain or inadequate capability of the supplier.

Technology Risk: It is related to the complete change in technology or introduction of a new technology.

Click here to view a explanation about what the difference are between strategic and operational risks