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Risk

An uncertain event or series of events that, if it occurs, can influence project objectives, potentially helping or harming the project outcome.

Key Points

  • Risk can be a threat (negative) or an opportunity (positive).
  • Risk management is continuous: identify, analyze, plan responses, implement, and monitor.
  • Prioritize risks by probability and impact, considering risk appetite, tolerance, and thresholds.
  • Track risks in a risk register or risk-adjusted backlog, assign owners, and define response strategies.

Example

A supplier might not deliver a critical API by Sprint 3, delaying integration (threat). Alternatively, an early beta program could speed feedback and boost adoption (opportunity). Both are uncertain events that can influence scope, schedule, or value.

PMP Example Question

Which statement best describes a project risk?

  1. A problem that has already occurred and requires immediate resolution.
  2. A certain future event that will negatively affect scope.
  3. An uncertain event or set of events that may affect project objectives positively or negatively.
  4. A variation from plan that is always reduced by adding contingency reserves.

Correct Answer: C — An uncertain event that can help or hurt project objectives

Explanation: A risk is uncertain and can have positive or negative effects on project objectives; issues are problems that have already occurred.

How To Land the Job and Interview for Project Managers Course

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You'll navigate the hiring process like a pro, with expert insights on personal branding, salary negotiation, and career growth strategies. Plus, downloadable templates and step-by-step guidance ensure you're always prepared.

Learn from seasoned professionals and join a community of ambitious project managers. Ready to land your ideal job and thrive in your career? Enroll now and take control of your future!



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HK School of Management delivers top-tier training in Project Management, Job Search Strategies, and Career Growth. For the price of a lunch, you’ll gain expert insights into landing your dream PM role, mastering interviews, and negotiating like a pro. With a 30-day money-back guarantee, there’s zero risk—just a clear path to success!

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