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Risk: “There may be potential external events that will have a negative impact on your project if they occur. Risk refers to the combination of the probability the event will occur and the impact on the project if the event occurs. If the combination of the probability of the occurrence and the impact to the project is too high, you should identify the potential event as a risk and put a proactive plan in place to manage the risk.” [1]

Risk management planning: The process that determines how risks will be managed for a project. It describes how risks are defined, monitored, and controlled throughout the project. [2]

Risk management spans all phases of the project, including initiation, planning, execution, and closure.

Note: there are differences between risks and issues.

  • Issues refer to things or events known about in advance, and that can be defined and anticipated.
  • Risks, on the other hand, are the uncertainties in a project; they are things or events that could impact positively or negatively on the project.

WEnote activity

Share one issue and one risk, in relation to your selected project, that illustrate the difference between the two. Post your comment below and then look on the course feed page to see what others have posted.

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Reading

Read the the section Risk Management Planning (up to and excluding Risk Management Process) in the prescribed textbook (Web | PDF | EPUB | MOBI), Chapter 16 (pages 141 and 142 in the PDF version).

Whilst reading this section, think about the positive and negative risks in your own project.

  1. CNX
  2. CNX