Risk is a measure of uncertainty. In project management risk is generally considered to be a measure of the probability and consequence associated with a specific event or occurrence such as not achieving a defined project objective. Risk is also associated with potential opportunities that may enhance a project outcome as well as threats that may create serious project related problems during the planning and execution of a project. Risk is often viewed from a negative perspective and the focus of the project manager and team is on the harmful, undesired consequences, and expected losses that may occur. It is important to note that risk is also associated with the potential for beneficial results that may be experienced from project decisions. Risk management includes the processes associated with planning for risks, identification of risks, prioritization of risks through analysis, responding to the risks, and monitoring and controlling the project to prepare for new risks. The processes for risk management as described in the PMBOK® Guide —Fourth edition are:
Plan Risk Management
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Monitor and Control Risk
Risk management is an ongoing process that should be practiced in every phase of a project. The project team should become actively involved in risk management and adopt a "preventive" or proactive approach to managing risk. Project teams should include ...