Describing sources of resource risk. - Assignment Example

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Describing sources of resource risk.

There are various resource risks which have been identified by equally different researchers. Ribeiro (2009, pg. 18) identified five different types of resource risks this he identified as, financial resource risks, human resource risks, supply risks, quality risks and risks associated to the project environment. Kendrick (2009, pg. 105) came up with three predominant groupings of resource risk, these being human resource, outsourcing and money or financial risk. However, the widely accepted sources of resource risks are organization, funding, people, time and suppliers as well as time.
People as a source of risk may be defined as the risk of not meeting project requirements due to improper human resource management, motivational issues and fraud (Shimpi, 1999; Mubarak & Mubarak, 2010, pg. 198). It involves the project management having concerns about the availability of enough people to complete the project, availability from the staff of the necessary skills and experience and the belief in the project success by the staff.
Some of the underlying concerns related to people as a source of risk include, conflict among staff members and lack of or scarcity of certain required skill from the staff and the lack of essential collaboration due to unforeseen events such as job change by project-critical personnel, or lack of project-critical expertise (Reardon, 2006, pg. 116).
However, in order to avoid resource risks related with human resource, there is the need for proper planning and credible scheduling of the work well in advance. A histogram analysis of resource requirements will also prove to be of importance in identifying possible staffing needs a project may face.
Outsourcing or supplier risks result from the use of people and services outside the project team. It accounts for more than a quarter of the resource risks (Kendrick, 2009, pg. 108). It includes delays such as when a supplier fails to complete an outsourced task on schedule.
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The project management institute (PMI) defines project risk in its Project Management Body of Handbook (PMBOK) as “an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one project objective, such as time cost, scope, or quality. A…
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