Chapter 10. Project Risks

10.6 Key Takeaways

Key Takeaways

  • Project risk is an uncertain event or condition that, if occurs, has a positive or negative effect on one or more project objectives.
  • Contingency reserve is allocated for known-unknowns whereas management reserve is allocated for unknown-unknowns.
  • The risk management plan is a component of the project management plan that describes how risk management activities will be structured and performed.
  • When risks are identified, they are recorded in a risk register. It is a key tool that helps project teams keep track of the status of risks, ensure response plans are effectively implemented, and new risks are managed.
  • Project teams perform qualitative risk analysis in order to prioritize individual project risks by assessing their probability of occurrence and impact.
  • The strategies to respond negative risks are escalation, avoidance, transfer, mitigation, and acceptance.
  • The strategies to respond positive risks are escalation, exploitation, sharing, enhancing, and acceptance.
  • The project team develops contingency plans as an alternative method for accomplishing a project goal when a risk event has been identified.



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Project Management by Abdullah Oguz is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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