project management glossary

risk

 The possibility of suffering loss, injury, disadvantage, or destruction.

 The probability of an undesirable outcome.

 (Project Risk) The cumulative effect of the chances of uncertain occurrences which will adversely affect project objectives. It is the degree of exposure to negative events and their probable consequences. project risk is characterized by three risk factors namely: risk event, risk probability and the amount at stake. Risk is the opposite of opportunity.

 Combination of the probability or frequency of occurrence of a defined threat or opportunity and the magnitude of the consequences of the occurrence.

risk & readiness assessment

 An evaluation, based on interviews with senior executives and managers, of the organizations readiness to accept the change brought on by the project. Conducted for the benefit of the Project Sponsor.

risk analysis

 An examination of risk areas or events to assess the probable consequences for each event, or combination of events in the analysis, and determine possible options for avoidance.

 A technique designed to quantify the impact of uncertainty. Usually, but not necessarily, associated with the Monte Carlo Simulation technique.