Are You Sure Its a Risk?
Are You Sure It s a Risk?
caution
For those planning on taking the PMP exam, note that risk management planning and risk response planning are two distinct activities. |
Before we end our review of managing project risks, it is worth mentioning that one common problem associated with project risk management is terminology and the proper labeling of risks. This is more of an academic issue, and generally the subtle differences are not key factors on projects. To make sure you avoid problems here, let's quickly review the definition of terms closely related to project risk and clarify those distinctions in Table 14.6
Term |
Definition |
Notes |
---|---|---|
Risk |
An uncertain event that could negatively impact the project critical success factors, if it occurs |
A threat Probability of occurrence must be between 0% and 100% |
Issue |
An active problem that could impact the project critical success factors |
A risk event that has actually occurred |
Constraint |
A limit that must be planned around |
Factual Constraints can introduce other risks |
Assumption |
Factor considered to be true, real, or certain |
Assumptions can include accepted risks Assumptions can introduce other risks |
Dependency |
An external event that must occur for the project to accomplish its objectives |
Identified during planning along with risks, constraints, and assumptions |
Defect |
A discrepancy between what is (actual) and what should be (expected) Mentioned here because planning and overall project management defects can become project risks if not identified and corrected |
Detailed planning efforts are important here The key source for many unknown risks |