A true risk is one that describes first and foremost an event that is:
Risk is a Future Event
One that has not yet happened.
If it has already occurred and has negatively affected the project, we are dealing with a problem that must be solved, not a risk.
Risk is a Future Event
A problem requires corrective action, often with high urgency. Risk, on the other hand, requires preventative actions and forethought.
For example: "The equipment we purchased arrived defective" is a problem (risk that materialized) that can no longer be prevented but only repaired.
Risk is an Uncertain Event
Risk is an event about which there is uncertainty – there is no certainty that it will happen or confidence that it will not happen.
If it’s certain an event will take place, then it is a constraint and must be dealt with in the work plan.
Risk is an Uncertain Event
The challenge is to make decisions about how to deal with risk in these uncertain conditions.
A common mistake is to treat a certain future event as a risk.
For example: “Our team leader goes to maternity leave next month for 12 weeks" This is not a risk but a constraint that must be considered.
Risk is a Damaging Event
A risk that materializes will disrupt the project's compliance with its defined goals
Risk is a Damaging Event
A common mistake is to refer to an event that affects someone else's goals as your risk.
For example: “The customer may not profit from the product as much as they would like“ – if the customer's profit goals are not part of the project's goals, this is not a risk of the project (someone else should manage this risk).
Risk is a Specific Event
A risk event must be defined in a specific manner and not in headings or slogans, otherwise it will not be possible to develop appropriate responses to deal with it
Defining a risk event should answer questions such as: What exactly might happen? When? To whom? Etc.
Risk is a Specific Event
A common mistake is to define risks in a general and inaccurate way.
For example: “Concern over a potential manpower shortage” is a general description that cannot be addressed however, “concern over a potential construction workers shortage during a certain holiday” describes a specific event that can be addressed.
Risk Describes the Cause of the Event
Impairment of project objectives is a consequence while risk is the event that may cause that outcome
Risk Describes the Cause of the Event
A common mistake is to treat the risk outcome as the risk itself.
For example: "Fear of a month delay in completing the development“ is in fact the consequence of the risk and not the risk itself.
The question is what is the cause of the damage? What is the event that could happen and because of which the development will be delayed? This is the risk.
Risk is a Spontaneous Event
Spontaneous events are those that the project has no direct control over – whether it happens or not will not be determined by any action of the project, but by a reality external to the project, dynamic and constantly changing
Risk is a Spontaneous Event
Events that are the result of internal factors are either defined as constraints or as challenges that must be handled within the project control and communication channels.
On a spontaneous event we have no control over, but we may have some impact on
A common mistake is to treat an internal event in a project as a risk.
