otted for each project task. According the Kindlinger and Darby (1) the major factors involved in the development of schedule risk are (1) the "reasonableness and completeness of schedule estimates" and (2) the ability of project managers to manage technical risks.
Cost risks involve the ability of project managers to attain planned project cost targets. According the Kindlinger and Darby (1-2) the major factors involved in the development of cost risk are (1) "the accuracy and completeness of cost estimates for the planned activities" and (2) the potential for poor management of technical risks to affect adversely project cost performance. Funding risk concerns the potential for a failure of either clients or project contractors to provide necessary funding to enable project managers to meet project schedule targets (Kindlinger and Darby 2).
Kindlinger and Darby (2-3) provide tabular models for both (1) identifying risk factors and (2) evaluating risk factors. Exhibit 1 (on the following page) presents the risk identification model, while Exhibit 2 (also on the following page) presents the risk evaluation model.
The risk factors identified in Exhibit 1 are generic in character. Project risk analysts must identify risk factors specific to each separate project.
The risk evaluation rankings in Exhibit 2 range from "0" (no risk) to "3" (high risk). Intermediate rankings are "1" (low risk) and "2" (medium risk).
The higher ranking risks identified through the risk evaluation process are the risks on which project risk managers concentrate initially to develop strategies to minimize project risk. The project risk manager then seeks to minimize project risks associated with lowe
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