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Welcome to Part C of Session 2 in our Project Risk Management course.

In this section, we will focus on organizational and project -related

These risks often come from inside the team or the way the project is managed.

In this section, we will explore the difference between organizational and

project -specific risks.

Organizational risks are broader and come from the structure environment and

culture of the organization.

This could include things like unclear strategy, financial problems, or weak

support from executives.

Even how decisions are made in offer management can add a risk to a project.

Project risks, on the other hand, are more specific and tied to the project

itself. They may involve unclear scope, team performance, or how well

stakeholders are engaged.

Understanding both levels is important because even a well -planned project can

fail in a risky organizational setting.

Organizations don't all handle risk the same way. Their approach often depends

on their industry, culture, and overall goals.

For example, startups and high -risk industries like oil industry usually

high risk tolerance.

They accept the possibility that many of their projects may fail because the

success of one of those high -impact projects could make up for the losses.

In contrast, more conservative organizations such as government

services provided with steady -paying customers, are usually risk -gabbers.

They aim for stability and prefer all projects to succeed, even if the returns

are smaller.

Importantly, an organization's risk tolerance is reflected in its policies.

For instance, a company with lowest tolerance might avoid fixed -price

because of the financial uncertainty involved.

This helps us understand that risk isn't just about the project, it is shaped by

how the organization chooses to operate it.

Risk management does not begin when the project starts.

It actually begins even earlier during project selection.

At that stage, decision makers need to think carefully about risks to decide

whether the project is worth pursuing.

That is because project selection and risk management are closely linked.

Choosing a project can introduce new risks, and at the same time, risk

helps guide the selection.

These two areas always work together.

To make smarter decisions, teams need reliable risk data.

Without clear estimates and solid analysis, organizations might have

that seem good at first, but are unrealistic and likely to fail.

In the end, a strong risk management leads to better project choices, and

choices help reduce future risks.

To succeed in selecting the right projects, organizations need a clear and

analytical portfolio management system.

Without it, decisions can become scattered and risky. When portfolio

is weak, several common issues tend to appear.

Teams may set unrealistic expectations about what projects can deliver.

Resources get stretched too thin with too many projects competing for limited

support.

Sometimes there is no clear link between project goals and the organization's

bigger strategy.

Projects may also be underfunded or rushed with unreasonable deadlines.

And leadership may assume the organization can handle more than what

can. All of these adds risk before a project even starts.

A strong portfolio process helps filter out the wrong project and gives the

right ones a real chance to succeed.

Here is a real -world inspired example from a fictional company called Kansas

Problem Solvers.

It is a mid -sized tech firm that starts the year with full of energy and new

ideas. The leadership team is given three exciting proposals, including

chain software, a customer service mobile app, and a full ERP system.

Without deep analysis, the executives decide to approve all three projects at

once, driven mostly by their enthusiasm.

They don't take time to check resource limits or strategic alignment.

Very soon, trouble starts to appear.

Technical teams are overloaded, leading to delays and reduced quality.

The budget cannot cover all three projects, so some key purchases are

The mobile app is finished, but it does not match the company's real strategic

goals. The ERP rollout runs into complexity and causes frustration due to

preparation.

In the end, the most promising project, the SDM software, is canceled because

there is no money left.

This example shows why portfolio management is not about doing

about doing the right things the right way.

So why do we place so much importance on structured project management

processes? Because without them, risks often go unnoticed and uncertainty takes

over. Good risk management does not just happen in response to problems.

It comes from solid planning.

At the project level, teams often face tight deadlines, changing priorities,

pursue to move fast.

But skipping planning only adds more risk, leading to rework, mistakes, or

surprises.

Fast -track projects actually need even more careful planning, not less.

At the organizational level, some managers may see project management as

unnecessary overhead.

And when there is little data, it becomes harder to make the case for it.

But even simple metrics, real examples, and a few small wins can start to shift

that mindset.

And here is something to remember.

Even if your organization does not fully support formal processes, you can still

use them in your own project and let the results speak for themselves.

And that wraps up part C of this session. Thank you for following along.

When you are ready, please continue with party to keep building your

understanding.