The probability that funds allocated to the project will be insufficient to complete it is:
A)technical risk.
B)cost estimate risk.
C)financing risk.
D)operating risk.

Question

Quizplus · Accepted Answer

Cost estimate risk refers to the possibility of underestimating or overestimating the necessary project costs. In this case, the risk relates to the possibility of the allocated funds being insufficient, which is directly linked to the accuracy of the cost estimate. Technical risk refers to the likelihood of technical failures or difficulties, financing risk relates to the availability and cost of funding, and operating risk refers to risks arising from the ongoing project operations.

The Probability That Funds Allocated to the Project Will Be