Risk Management

What is a risk?

A risk is a: Possible future event that has negative results Hazard; peril; or exposure to loss or injury An uncertain event or condition that, if it occurs, has a positive or negative effect on the project objectives The first two definitions above treat risk as always negative, the third considers postives as well, we will stick with the third.

A risk is different to uncertainty even though they are related Uncertainty:

• Lack of complete certainty about an event/outcome

• The event/outcome has a probability of less than 1

  Risk:

• Uncertainty that has an impact