During the execution phase of a construction project, you have previously identified the risk that a critical piece of machinery might fail due to its age and constant use. Today, your on-site foreman informs you that the machinery has indeed malfunctioned and is now out of service, delaying work. As the project manager, how should you interpret this event?
This is still considered a risk and should be monitored according to the risk management plan.
The event should be ignored as it falls outside the project scope and will be self-resolved.
The machinery failure is unrelated to the project's risks and should be dealt with separately by the operations team.
The risk has transitioned into an issue and immediate action must be taken to address it.
The correct answer is that the risk has transitioned into an issue. Risks are potential problems that might happen in the future, and their occurrence is uncertain. Issues, however, are problems that have already occurred. When the critical piece of machinery, which was identified as a risk, has malfunctioned and caused a delay, it has effectively transitioned from a hypothetical possibility to a tangible problem that needs immediate attention and resolution.
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What is the difference between a risk and an issue in project management?
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