i)Poor management of the project
ii)insufficient funds
iii)Moving targets
iv)Poor planning of the project
v)Unrealistic deadlines
vi)Lack of control mechanisms
vii)Poor user involvement
or
• Project-specific risk
– The earnings & cash flows of the project may be lower than expected because of an estimation error or due to some other factors specific to the project like quality of mgt
• Competitive risk
– The earnings & cash flows of the project may be affected by the unanticipated actions of the competitors
• Industry-specific risk
– Unexpected technological developments & regulatory changes that are specific to the industry to which the project belongs will have an impact on the earnings & cash flows of the project as well
• Market risk
– Unanticipated changes in macroeconomic factors like the GDP growth rate, interest rate, & inflation have an impact on all projects, albeit in varying degrees
• International risk
– In the case of foreign project, the earnings and cash flows may be different than expected due to the exchange rate risk or political risk
Steve ju answered the question on October 10, 2018 at 21:33
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