MANAGEMENT

Detailed explanation-1: -Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective.

Detailed explanation-2: -The PMBOK® Guide describes risk as, An uncertain event or condition, that if it occurs, has a positive or negative effect on a project’s objective. The key element of this definition is that the effect of the uncertainty, if it occurs, may be positive or negative on the objectives of the planned endeavour.

Detailed explanation-3: -Risk and uncertainty are definitely two separate areas. A risk event can be identified and described and a decision made about what action, if any, can be taken to manage it – either the event or the effect. The short-hand definition of risk as the ‘known unknown’. Uncertainty is the ‘unknown unknown’.

Detailed explanation-4: -Project risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective (Project Management Institute, Inc., 2008). Risk management focuses on identifying and assessing the risks to the project and managing those risks to minimize the impact on the project.

Detailed explanation-5: -A project risk is an uncertain event that may or may not occur during a project. Contrary to our everyday idea of what “risk” means, a project risk could have either a negative or a positive effect on progress towards project objectives.