Risk

Risk Management Plan

Describes how risk management activities will be structured and performed, including risk strategy, methodology, risks/responsibilities, funding, timing, and risk categories.

Identify Risks

The process of identifying individual project risks and sources of overall project risk along with their characteristics.

Risk Definition Meta Language

A template used to articulate risks: 'As a result of (blank), (blank) may occur, which would lead to (blank)'.

Example of Risk Definition

Because we are using 'Cost Plus' contract type, scope could creep, which would cause the project to be over budget.

Risk

An uncertain event or condition that may occur, affecting one or more project objectives, identified during project planning.

Risk Register

A tool used for documenting identified risks, their characteristics, and the response strategies.

Issue

A problem that has already occurred that requires immediate attention and can impact the project's progress or outcomes.

Relationship between Risks and Issues

Risks become issues once they happen.

Qualitative Risk Analysis

The process of prioritizing individual project risks for further analysis by assessing their probability of occurrence and impact.

Quantitative Risk Analysis

The process of numerically analyzing the combined effect of individual project risks and other sources of uncertainty on overall project objectives.