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Risk management at the project as well as business levels facilitates in understanding the possible risks that may hinder the project, finalize on enhanced decisions, parley on contracts that are fair, generate scenarios for mitigation of risk, and cause improvement in teamwork. The research paper will facilitate understanding of how the assessment of risk leads to perfect plans which assist in evading overruns of budget or project delays.
The assessment of risk makes complete disclosure of the project sensitivity to its members for ensuring that entire set of threats posed on the project are completely understood. Consequently, the goals and the eventualities are set at accurate levels, negotiation of the contracts is done with precise understanding of possible issues and concerns, and the mitigation strategies for risk could also be generated beforehand. Risk management also enhances teamwork through augmenting honesty, openness, as well as understanding amid the members of project team (Oracle, 2009).
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