Risk Management in Projects

Running head: RISK MANAGEMENT IN PROJECTS
RISK MANAGEMENT IN PROJECTS
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USER CENTRED DESIGN PROCESS1
Table of Contents
Question 1..................................................................................................................................2
Question 2..................................................................................................................................3
References..................................................................................................................................5

USER CENTRED DESIGN PROCESS2
Question 1
What are the four main categories of business risk, Discuss and elaborate on two of
them?
Most of the businesses faces different types of risks that may decrease their level of
efficiency to achieve the goals as set by the organization handling the business. The four
significant business risks that may be identified within any business are depicted to be
Strategic Risks, Compliance Risks, Operational Risk and lastly the Financial Risk. The two
significant risks are briefly stated below:
 Strategic Risk: The significant success of a business depends on the fact of the
efficient business planning. If the plan is not enhanced in association to the business
then it is depicted to be a failure and the significant situation is stated to be a strategic
risk. Facing such type of risk is not disastrous at times but there has to be a significant
importance that is to be provided in regards to this risks when the overall planning is
carried out regarding a business (Harris, 2017). This risk are very important in regards
to their mitigation as without its mitigation a business may not achieve their strategic
scope as well as goals as set within their business plan.
 Compliance Risk: This situation leads to the risks that are associated with the fact that
a business is not following the necessary rules and regulations as well as the laws that
are needed for a business to carry out the smooth execution of the overall business.
Moreover, this risks also tends to decrease the certain level of the company’s
reputation as well as tends to affect the future of the business, thus hampering their
customer market and further putting a negative impact within their business trends
(Sadiq & Governatori, 2015).