Risk Management

The Risk Management discipline manages the uncertain events that positively or negatively affect the project. More specifically, it enables the team to identify, assess, and monitor individual risks. Additionally, it allows the team to determine and implement the response strategies that can favorably influence risks. On the one hand, the team can mitigate and avoid threats. On the other hand, the team can also explore or enhance opportunities.

At the same time, the risk management discipline manages the overall project risk. More specifically, it enables the team to assess and influence the overall risk exposure. Hence, the project can define more realistic objectives.

Let’s explore the concepts of individual risks and overall project risk.

An individual risk is an uncertain event that can have a positive or negative project impact. Moreover, risks with negative impacts are known as threats. At the same time, risks with positive impacts are known as opportunities.

Simultaneously, the overall project risk represents the overall project uncertainty. In other words, it reflects the confidence that the team will meet the project’s objectives.