Hi again. Let's discuss some common types of risks that you might plan for while managing a project. Though there are many different types of risks that could impact your project, the big ones that you want to be aware of are: time risks, budget risks, and scope risks. Let's break those down. First, we have time risks. Time risks refers to the possibility that project tasks will take longer than anticipated to complete. You'll need to be aware of time risks because time is money. Poor time management may deplete your budget and upset your stakeholders by causing delays. Next, we have budget risks. Budget risk refers to the possibility that the cost of a project will increase due to poor planning or expanding the project scope. You need to be aware of budget risk since budgeting provides the basis for project costs control. For example, if you overspend, you might not be able to pay your suppliers. This could result in some reputational damage for the company. Then we have scope risk. Scope risk refers to the possibility that a project won't produce the results outlined in the project goals. You need to be aware of scope risks because the deliverables of your project might not be acceptable to your stakeholders or customers, and that may defeat the purpose of the entire project. While time, budget, and scope risks are very common, there are other types of external risks that you should be aware of. By external risks, we're referring to risks that result from factors outside of the company that you have little to no control over. For example, your project could be impacted by an environmental risk, like a major storm, or a legal risk, like a change in regulatory requirements. And it's also important to know that there are endless types of risks. There will never be a prescription for how to identify and manage every single possible risk. But if you have a plan, you'll be better set up to deal with whatever comes your way. Okay, now let's discuss a certain type of risk known as a single point of failure. A single point of failure is a risk that has the potential to be catastrophic and halt work across a project. These are risks that have the power to stop an entire team in its tracks, meaning that no one can make progress on their tasks until the issue is resolved. For example, in our Office Green scenario, a single point of failure might be a power outage that takes down the internal database where every piece of information about the project is stored. Until the database is back up and running, your team won't have access to any of the information they need to do their jobs. As a result, your team won't be able to complete any of their assigned tasks. To mitigate this risk, you might budget for a separate cloud service to serve as your backup for all of your project documentation and information. As the project manager, you'll need to identify and monitor potential single points of failure in your project, since they can be detrimental to the project timeline, budget, and scope. Another source of risk to be aware of are dependencies. A dependency is a relationship between two project tasks, where the start or completion of one depends on the start or completion of the other. In other words, dependencies are like links that connect one project task to another. A dependency must be addressed before the task can be completed or before another task can begin. Because dependencies are the links that connect one project task to another, they are often a huge source of risk to a project. For example, imagine that you've tasked a teammate with hiring a local plant supplier. Until they've signed a contract with the supplier, your team can't place any orders. That's a dependency. Now here's where the risk comes in. If your teammate doesn't meet the hiring deadline and then goes on vacation for a week, this could delay your project timeline. Not great right? If you don't plan for dependencies, you might risk and impact your budget schedule or project outcome. To prevent something like this from happening, you might ask a teammate to share their out-of-office plans with you at the start of the project. This helps you to stay aware of everyone's schedules, ensuring that there are backup plans in place to maintain your project schedule. There are two types of dependencies: internal and external. Internal dependencies refer to dependencies within the project that you and your team have control over. For example, you'll need to secure approval on a website design before development can begin. On the other hand, external dependencies are dependencies that you have no control over. For example, the farm that your plant vendor works at might have experienced a lighter rain season this year, meaning that they'll have fewer plants to sell. There are many different risks that can impact your project, from time risks to budget risks to scope risks. But remember, no project is risk-free. And with careful, upfront planning, you can do your best to prevent risks from occurring. In the next video, we'll discuss how to mitigate risks. I'll meet you there.