Risk Definition
Risk is the possibility that an unforeseen event will occur.
Risk has three components
The risk – the event that has occurred.
The probability that the event will occur.
The impact of the event occurs.
Risk once occurred would have the impact on the project variables which is not expected. Hence Risk management is an activity that has to be performed which involves the activities of defining, measuring, prioritizing, and managing risk in order to eliminate or minimize the impact of it. There can be positive or negative impacts on the project variables. Hence all risks need be eliminated or addressed.
Risk is the possibility that an unforeseen event will occur.
Risk has three components
The risk – the event that has occurred.
The probability that the event will occur.
The impact of the event occurs.
Risk once occurred would have the impact on the project variables which is not expected. Hence Risk management is an activity that has to be performed which involves the activities of defining, measuring, prioritizing, and managing risk in order to eliminate or minimize the impact of it. There can be positive or negative impacts on the project variables. Hence all risks need be eliminated or addressed.