project selection and risk.
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What are some ways in which project selection affects risk? How can these risks can be reduced?
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Solution Summary
This answer offers cogent arguments relating to project selection.
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Step 1
Project selection involves defining selection criteria and weightings. If the selection criteria do not have risks included then there can be unknown risks. These risks can be reduced by including certain criteria related to risks and giving them proper weight-age. This way the score for a project idea will include the element of risk and help select projects with an appropriate level of risk. These criteria also help inform the key stakeholder of the risks involved (a).
Step 2
During the project selection it is customary to identify and characterize the risks associated with the projects. The risks can be ...
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