Project Management for IT-Related Projects

7.1 Introduction

There are a number of definitions that are used to define risk, some embracing opportunities as well as threats. Arguably, the most used is the definition provided in PRINCE 2, the project management standard sponsored by the UK government:

The chance of exposure to the adverse consequences of future events.

Those adverse effects could be a reduction in the efficiency of the project, or even the failure of the project. They include higher development costs, delayed project completion, reduced scope and reduced performance. The adverse effect could also be a less effective completed system that fails to deliver the appropriate capability, which in turn means that the original business case is not fully realized.

Some risks are ...