Risk - Definition - Risk analysis and management

Discussion

• Prajakta Pandit   -Posted on 05 Nov 15
  
  - Risk is a negative consequence that could occur.
  
  - It is future uncertain events with a probability of occurrence and a potential for loss.
  
  - Risks are identified, classified and managed before actual execution of program. These risks are classified in different categories, such as:
  
    - Schedule Risk : It is the risk that the project takes longer than schedule.
  
    - Budget Risk : Budget should provide an accurate forecast of anticipated revenues and a roadmap for appropriate sending. Effective budgeting and forecasting are vital components of sound risk management.
  
    - Operational Risk : It is the risk remaining after determining financing and systematic risk and includes risks resulting from breakdowns in internal procedures, people and systems.
  
    - Technical Risk : It is simply the risk associated directly with the knowledge base being employed and its technical aspects including such things as understanding, reproducibility and the like.
  
    - Programmatic Risk : This risk exists in the business environment not related to the technical issues.
  
  - Risk is a possibility, not a certainty.
  
  

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