The word Risk signifies or means Danger and our perception is
that, whenever it happens, the result will be negative or something
undesirable.
According to PMI
Risk is an uncertain event or condition that if occurs, has a
positive or negative effect on meeting the project objectives
related to components such as schedule (time), cost, scope or
Quality.
For example, one of the obvious schedule objectives for a
project is to complete the project by the scheduled deadline. If a
risk related to the schedule occurs, it can delay the completion of
the project, or it can make it possible to finish the project
earlier. So, the two characteristics of a risk in project
management are the following:
• It stems from elements of uncertainty.
• It might have negative or positive effects on meeting the
project objectives.
Risk management includes planning risk management, identifying
and analyzing the risks, preparing the response plan, monitoring
the risk, and implementing the risk response if the risk
occurs.
