Economic
Examples of Risks and Treatments
Project Risks
The lists of risks in this section have been derived from a wide range of projects. There are many other ways of classifying them.
Commercial
- Competing projects
- Competitive pressures
- Demand management
- Innovation
- Market growth
- Market share
Contract General Conditions
- Arbitration, courts
- Changes to standard general conditions
- Commercial issues
- Common use contract
- Conditions for acceptance
- Contractor to inform himself
-
Delay due to principal or other factors - Force majeure events
- General conditions (and are we aware of contents and implications)?
- Insurance, indemnities
- International contract terms
- Legal, regulatory
- Legally binding
- Liquidated damages
- Practical completion date
- Prompt payment
- Safety
- Scope
- Security, warranties
- Specification requirements, quality
- Variations
Counterparty
- Ability to meet contract commitments
- Attitude to litigation
- Client business failure
- Client change of ownership
- Client inability to take delivery of project
- Client misunderstanding of needs and scope of work
- Client speed of response
- Creditworthiness, ability and willingness to pay
- Experience with organization
- Failure to pay or delayed payment
- Future business
- Loading or preferential treatment of bids
- Payment delay history
- Payment philosophy
- Principal interaction
- Principal's attitude to changes in scope
- Project culture and attitude: environment, quality, safety, time
Economic
- Commodity prices
- Currency stability, exchange rate variation
- Demand growth
- Demographic trends
- Discount rate
- Energy price
- Inflation rate
- Interest rates