HKSM

An uncertain event or situation that, if it happens, could help or harm one or more project objectives.

Key Points

• Risks are uncertain; they may be threats (negative) or opportunities (positive).
• Each risk is characterized by probability, impact, and often timing and urgency.
• Common responses include avoid, mitigate, transfer, or accept for threats; exploit, enhance, share, or accept for opportunities.
• Risks are logged in a risk register, assigned to a risk owner, and reviewed throughout the project.

Example

On a software project, a new third-party API may become available mid-project. If it is stable, it could reduce development time by 20% (opportunity). If it is delayed or incompatible, it could require rework and push the schedule (threat). The team records the risk, estimates probability and impact, and plans responses for both outcomes.

PMP Example Question

A project manager notes that a supplier strike might occur next month, which could delay critical hardware delivery, but an early shipment discount could also accelerate the schedule. What is this best described as?

1. An issue
2. A risk
3. An assumption
4. A constraint

Correct Answer: B — An uncertain event that could either help or hinder project objectives.

Explanation: A risk is uncertain and can have positive (opportunity) or negative (threat) effects; issues are current problems, assumptions are taken as true, and constraints limit choices.