Question

In: Operations Management

The four primary types of risk in a project are: strategic fit, new service or product...

The four primary types of risk in a project are: strategic fit, new service or product and the unforeseen design consequences that can occur, the ability to meet the project specifications, and poor design, communication, and planning.

  • Discuss a real-life project (personal example or a researched example) and discuss how risk was or was not managed properly as well as the steps that should be taken when identifying and managing risk in a project.

Solutions

Expert Solution

Top companies like Goldman Sachs missed out on potential market risks and heavily invested in particular small cap stocks with high volatility and high returns to fund their debt and ultimately the stocks yielded negative returns and aggravated the situation.

Make no mistake, the red flags and negative implications of investment into BBB minus rated companies always had high risks but at benefit of higher returns.

To manage such risks, companies must have strong risk management frameworks and ethical audit and adhering to global norms like Basel III effects and Sarbanes Oxley Act.


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