Project Risk

What is Risk ?

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
Risk :

• Positive effect (Good) : Opportunity
• Negative effect (Bad) : Threat

Risk vs Issue

• Risk is future event
• Issue is current problem
• Risk can become an issue
• Issue is not risk ( Already happened )

Example for Positive & Negative Effect : Rain

Rain on Farms is an Opportunity for plants ( Positive effect)

But , When rain still occur ; Positive effect can be changed to negative effect !!!

Rain on construction sites is threat for completing works (Negative effect )

Project Risks

Risk exists at two levels within every project

• Individual project risk

It is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.

• Overall project risk

It is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks