P
pdf1987
Member
Hi
I'm wondering if anyone can clarify the difference between project risk and business risk when identifying risk for a capital project. There appears to be some overlap.
For example, in April 09 paper 1, Q5 it asks for risks associated with the project. One of the risks under business risk in acteds solution is costs being higher than expected, yet in the notes/flash cards "cost overruns" is given as an example of a project risk.
Another example in the same question is about factors affecting consumer demand (which would need to be assessed for viability) which sits under project risk in the acted solutions but I would have classed it more as a business risk.
I'm assuming we would get credit for it if it was put under either category, but I wanted to check as I'm thinking of a possible case where we would be asked to give one example under each category, giving breadth in our answer, and the examiners may be a bit more strict.
I'm wondering if anyone can clarify the difference between project risk and business risk when identifying risk for a capital project. There appears to be some overlap.
For example, in April 09 paper 1, Q5 it asks for risks associated with the project. One of the risks under business risk in acteds solution is costs being higher than expected, yet in the notes/flash cards "cost overruns" is given as an example of a project risk.
Another example in the same question is about factors affecting consumer demand (which would need to be assessed for viability) which sits under project risk in the acted solutions but I would have classed it more as a business risk.
I'm assuming we would get credit for it if it was put under either category, but I wanted to check as I'm thinking of a possible case where we would be asked to give one example under each category, giving breadth in our answer, and the examiners may be a bit more strict.