Project Risk is the combination of the probability of an uncertain event and its consequences. A positive consequence presents an opportunity; a negative consequence poses a threat.
Type of risk
Type of risk
Generic Risk : any uncertainty that, if it occurs, would affect the project.
Project Risk : any uncertainty that, if it occurs, would affect one or more project. Exp. Time, cost, performance, satisfaction.
Business Risk : any uncertainty that, if it occurs, would affect the business to generate the expected profit. Exp: Profitability, market share, competitiveness, Internal Rate of Return (IRR), reputation, repeat work, share price.
Competitive Risk : the earning and cash flows of the project may be affected by unanticipated actions of the competitors.
Industry specific Risk : Any risk arises in the industry to which the project belongs. Exp: unexpected technological development, regulatory changes.
Market Risk : Any unanticipated changes in macroeconomic factors have an impact on all projects. Exp: GDP growth rate, inflation, interest rate, unemployment.
Industry specific Risk : Any risk arises in the industry to which the project belongs. Exp: unexpected technological development, regulatory changes.
Market Risk : Any unanticipated changes in macroeconomic factors have an impact on all projects. Exp: GDP growth rate, inflation, interest rate, unemployment.
International Risk : The earning and cash flows may be affected for international events. Exp: changes in exchange rate, political violence.
Safety Risk : any uncertainty that, if it occurs, would affect one or more safety objectives. Exp: Low accident rate, minimal lost days, reduced insurance premiums, regulatory compliance.
Technical Risk : any uncertainty that, if it occurs, would affect one or more technical objectives. Exp: Performance, functionality, reliability, maintainability.
Security Risk : any uncertainty that, if it occurs, would affect one or more security objectives. Exp: Information security, physical security, asset security, personnel security.
Safety Risk : any uncertainty that, if it occurs, would affect one or more safety objectives. Exp: Low accident rate, minimal lost days, reduced insurance premiums, regulatory compliance.
Technical Risk : any uncertainty that, if it occurs, would affect one or more technical objectives. Exp: Performance, functionality, reliability, maintainability.
Security Risk : any uncertainty that, if it occurs, would affect one or more security objectives. Exp: Information security, physical security, asset security, personnel security.