Key concepts for risk management

All projects will contain an element of risk. Whether this is a good thing and an opportunity, or a bad thing and a threat to a project, risk will occur. Because risk will impact your project, it is thus important to plan for risk appropriately and iteratively. Risk exists at a couple of levels—first, at an individual level, and then at an overall project level. Both contain a probability that a risk event will occur, and an impact if and when it does. Most of risk management involves working with subjective information and what-if considerations. Often, risk will impact several areas at once. So, even if it constitutes an individual risk to your schedule, the domino effect could impact other substantial constraints such as scope and cost. Overall project risk involves looking at the entire project as we understand it today and determining the impact of risk on the whole project. The first place we see risk categories, hopefully, is in the project...