7. Project Risk Management
By the end of this chapter, you will learn the following:
• Types of risks
• Ways to develop a risk matrix
• Methods to manage risks
• What to do when a project is too risky
Each project is unique because it tries to do something new. There is always a certain sum of risk attached. Risk is an unsure event or set of events that, should they occur, would have a positive or negative impact on the project. Threat is used to designate a risk that would have a negative impact on the project’s objectives. Opportunity is used to designate a risk that would have a favorable impact on the project’s objectives.
According to Management of Risk: Guidance for Practitioners, management of risk “incorporates all the activities required ...