Joe and his team are working to develop a new product. They have been given a fixed budget and a rough estimate of the time left until the product must hit the market. The team's key concern is that the product would be too costly and time-consuming to produce. What kinds of risk is likely to be faced by Joe and his team?

Question

Tia Clayton

Business

19 September, 22:26

Joe and his team are working to develop a new product. They have been given a fixed budget and a rough estimate of the time left until the product must hit the market. The team's key concern is that the product would be too costly and time-consuming to produce. What kinds of risk is likely to be faced by Joe and his team?

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Shania King · Answer 1

In this case, Joe and his team are likely to face a known risk, which is configured as a risk that the project manager knows exists, exemplified in the question as the team's concern about a very expensive and time-consuming product to produce.

When the risk is known, it is possible for professionals to be able to identify and plan actions in advance to find solutions to this type of risk.

Therefore, it is necessary that in every project there is an area dedicated to risk management, because in every project there are internal and external factors that can influence or change the life cycle of a project. The importance of identifying such factors and their causes is an important step in risk management.