What is a project risk?
Definition project risk
A project risk is an uncertain event that, if it occurs, has a positive or negative effect on the prospects of achieving project objectives
Three aspects of the definition are especially important:
- uncertain event: something may or may not happen, e.g. somebody becomes ill or the temperature drops below a certain point making a chemical process impossible.
- positive or negative effect: project risk is not necessarily negative (increased costs, decreased quality etc.); It can also be positive (new valuable product features due to the use of new technology or opening up a new market segment due to some project adjustments).
- project objectives: the project goals are at stake if a risk occurs. Severe negative risks can lead to the cancellation of a project whereas minor risks may slightly increase the completion time of a project.
In short, risk management is about anticipating uncertain events that are inherent to a project in order to optimize them for project success.
other questions about project risk management
- How can I detect risks?
- What is the essence of risk management?
- How can I analyze risks?
- How can I prioritize risks?
- What is a risk status?
- What is a risk class?
- Risk identification methods
- evaluate a project
- monitoring a project
- the role of team members
- What role do projectpartners have in managing project risks?
- How can I setup risk management in my company?