Why is it important to identify risks of the project on the planning stage
The interdependences and risks within a project should be identified at the very beginning of a project; this means that an assessment is required on the potential impact of the risk so that appropriate and proportionate responses are planned. Although analyzed at the start, risks should be monitored throughout the project lifestyle. By setting SMART objectives and KPI’s, along with a technique such as a SWOT analysis or a PESTLE analysis should highlight any potential risks within the project
Some people during the planning stages like to carry out a couple of risk analyses. However, it does not matter how many risk analyses you may carry out, there will always be a risk that was not anticipated until the project is underway.
For example: If you were to design a brand-new car, which involved using materials that have never been used before, this is a risk in its self as you do not know the durability of that material, etc. Added to this unidentified risk, if you had a deadline to have the car ready for, imagine that the materials you were using were not the right ones for the car, this would essentially cause you to run over the deadline as you would need to source another material to use, it would also mean that you would be spending more than budgeted for.