A risk is an uncertain event or condition that, if it occurs, can have a positive or negative effect on project objectives (time, cost, scope, quality).
So risk is about uncertainty.
Examples:
Exam line: “Risk is potential; issue is actual.”
Risk management helps to:
Ignoring risks leads to delays, cost overruns and quality issues.
Typical steps:
Risk management is continuous throughout the project.
Common methods:
Output: a list of risks to be recorded in the risk register.
Qualitative analysis prioritizes risks using:
Result:
This helps focus attention on top risks.
A risk matrix maps probability vs impact.
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A risk is an uncertain event or condition that, if it occurs, can have a positive or negative effect on project objectives (time, cost, scope, quality).
So risk is about uncertainty.
Examples:
Exam line: “Risk is potential; issue is actual.”
Risk management helps to:
Ignoring risks leads to delays, cost overruns and quality issues.
Typical steps:
Risk management is continuous throughout the project.
Common methods:
Output: a list of risks to be recorded in the risk register.
Qualitative analysis prioritizes risks using:
Result:
This helps focus attention on top risks.
A risk matrix maps probability vs impact.
This is a common 5-mark diagram.
Quantitative analysis assigns numerical values. Basic examples:
In many exam syllabi, only EMV basics are required.
For negative risks (threats), strategies include:
For positive risks (opportunities):
(Simple note: management reserve may exist for unknown-unknowns.)
Each significant risk should have a risk owner responsible for:
Monitoring uses:
A risk register is the main document used to record and track risks.
Typical fields:
Plan → Identify → Qualitative analyze → Quantitative analyze → Response plan → Monitor/Control
Impact ↑
High | Critical | High
Med | Medium | Medium
Low | Low | Low
+----------------------→ Probability
Low High
From this topic
Risk management reduces surprises, improves planning accuracy, protects time/cost/quality objectives, and increases stakeholder confidence. It also helps allocate contingency reserves.
Methods (any three): brainstorming, expert judgement, checklists from past projects, SWOT analysis, interviews, review of WBS/schedule assumptions. Output is a list of risks for the risk register.
Risk management is a continuous process to identify and handle uncertainties.
Steps:
Plan → Identify → Qualitative analyze → Quantitative analyze → Response plan → Monitor/Control
Thus, risk management reduces surprises and protects project objectives.