How does risk level vary with project life cycle stages? Where is the period of highest risk impact? Why?

What will be an ideal response?

Risk is at its highest during a project's concept phase, falling off gradually during development phase and reduces dramatically during implementation and termination phases. At project completion, risk is at its nadir. Risk is highest at the start of a project because uncertainty is high; what may be a clear vision in the customer's and project leader's minds is far from realization. Questions are answered and uncertainties resolved as the project progresses, but the amount at stake, as measured in man hours of labor, materials, and other expenses, rises. The period of highest risk impact is late in a project's life; while risk itself is lower, the amount at stake is much higher, and until the project is finished and accepted there is potential for a poor finish. Since one important criterion of project success is customer acceptance, the risk impact remains high to the end.