HKSM
Risk
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?
- An issue
- A risk
- An assumption
- 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.
