Project Risks
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FAQ
The Project Management Body of Knowledge (PMBOK) sorts project risk into three categories: operational risks, short-term strategic risks, and long-term strategic risks.
13 Common Types of Project Risks Cost Risk. Schedule Risk. Performance Risk. Operational Risk. Technology Risk. Communication Risk. Scope Creep Risk. Skills Resource Risk.
PMBOK Guide-based theory describes five types of risk response strategies: Risk avoidance, risk transference, risk escalation, risk mitigation, and risk acceptance.
The main four types of risk are: strategic risk - eg a competitor coming on to the market. compliance and regulatory risk - eg introduction of new rules or legislation. financial risk - eg interest rate rise on your business loan or a non-paying customer. operational risk - eg the breakdown or theft of key equipment.
There are five categories of operational risk: people risk, process risk, systems risk, external events risk, and legal and compliance risk.
There are four main types of project risks: technical, external, organizational, and project management. Within those four types are several more specific examples of risk.
Overall project risk refers to the possibility of any one or more circumstances occurring that might alter a project's outcome. Individual risk refers to a single possible event; overall project risk refers to all possible events. For example, an individual risk might be a project going over budget.
What is project risk? A project risk is an uncertain event that may or may not occur during a project. Contrary to our everyday idea of what ?risk? means, a project risk could have either a negative or a positive effect on progress towards project objectives.
