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A Project Risk is a possible future event or situation that, if it becomes a reality, is likely to have an adverse impact on project delivery according to the Plan, Budget, or Business Case.

Why Do You Need to Manage Project Risks?

Managing a project is concerned with managing through uncertainty towards defined goals. Projects need –

• A sound Business Case
• A precise statement of requirements
• A comprehensive plan
• Sound estimates
• Clear dependencies
• Known resource requirements
• A skilled team
• Reliable suppliers
• Committed Management

However, when dealing with change and innovation, things do not always turn out as expected and can affect one or more of the areas above. Establish procedures to identify the risks that might throw the project off-course and identify measures to avoid, minimise, or otherwise deal with them.

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