Root Causes of Project Risk | CRISC Exam Preparation

What Causes Project Risks? | CRISC Exam Preparation

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Question

Which of the following is the FOREMOST root cause of project risk? Each correct answer represents a complete solution.

Choose two.

Answers

Explanations

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A. B. C. D.

CD.

The foremost root cause of project risk is: -> A lack of discipline in managing the software development process -> Selection of a project methodology that is unsuitable to the system being developed Incorrect Answers: A: The risk associated with new system is not meeting the user business needs is business risks, not project risk.

B: This is not direct reason of project risk.

The root cause of project risk is a crucial aspect of project management that needs to be identified and addressed to ensure project success. Among the given options, the two foremost root causes of project risk are:

A. New system is not meeting the user business needs: The primary objective of any project is to fulfill the business needs of the user. If the newly developed system fails to meet the user's business needs, it can result in significant project risks such as dissatisfaction, rework, or even project failure. To mitigate this risk, project managers need to ensure that they understand the user's business needs and align the project objectives accordingly. Proper communication and feedback mechanisms must be in place throughout the project development process to ensure that the final product meets the user's requirements.

D. Selection of unsuitable project methodology: The project methodology selected for a project plays a significant role in project success. If the chosen methodology is unsuitable for the project's nature, it can lead to significant project risks such as schedule overruns, budget overruns, and rework. Project managers must assess the project's requirements, complexity, and scope before selecting a suitable project methodology. The methodology selected should be adaptable to changes, have clear communication channels, and support team collaboration.

B. Delay in arrival of resources: Though a delay in the arrival of resources can impact project schedules and cause financial implications, it is not the foremost root cause of project risk. Project managers can mitigate this risk by identifying the required resources, scheduling their availability, and ensuring they are on time.

C. Lack of discipline in managing the software development process: While lack of discipline in managing the software development process can lead to project risks, it is not the foremost root cause. Project managers can mitigate this risk by implementing effective software development processes, including development standards, code review, testing, and quality assurance measures.

In summary, project managers must identify the foremost root causes of project risk and implement effective strategies to mitigate them. The foremost root causes of project risk are the new system not meeting the user business needs and the selection of unsuitable project methodology.