Gary is the project manager for his organization. He is working with the project stakeholders on the project requirements and how risks may affect their project. One of the stakeholders is confused about what constitutes risks in the project. Which of the following is the most accurate definition of a project risk?
A.
It is an uncertain event that can affect the project costs.
B.
It is an uncertain event or condition within the project execution.
C.
It is an unknown event that can affect the project scope.
D.
It is an uncertain event that can affect at least one project objective.
Explanation:
Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective. Project risk is concerned with the expected value of one or more results of one or more future events in a project. It is an uncertain condition that, if it occurs, has an effect on at least one project objective. Objectives can be scope, schedule, cost, and quality. Project risk is always in the future.
Answer option C is incorrect. Risk is not unknown, it is uncertain; in addition, the event can affect at least one project objective – not just the project scope.
Answer option B is incorrect. This statement is almost true, but the event does not have to happen within project execution.
Answer option A is incorrect. Risks can affect time, costs, or scope – not just costs.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"