Risk Overview

An essential aspect of project management is to identify and manage the inherent risks of a project. A risk is any probable event or condition that can have a potentially negative outcome on the project in the future. A risk work item documents and tracks the technical or organizational risks of a project. When concrete action is required, these risks may translate into tasks to be performed to mitigate the risk. For example, a technical risk can set off an architectural prototyping effort. The team should always regard risk identification in a positive way to ensure contribution of as much information as possible about the risks it faces. The environment should be such that individuals identifying risks can do so without fear of retribution for honest expression of tentative or controversial views. Teams creating a positive risk management environment will be more successful at identifying and addressing risks earlier than those teams operating in a negative risk environment.