Managing risks

managing risks

The term ‘risk’ is defined in financial terms as ‘the chance that an investment’s actual return will be different than expected’. But in Project Management Body of Knowledge, project risks are defined as uncertain events that will have an effect on project objectives like scope, cost, schedule, quality etc. The impact can be positive as well as negative. Positive risks are called opportunities and negative risks are called threats. By this definition they are like two sides of a coin. Depending on the individual’s appetite for risk, one will view the same event as a threat or an opportunity. For example, making a mega blockbuster movie with Rajnikanth is an opportunity for Director Shankar. For others it is a threat. If you are a risk lover, you will sleep less but eat more and if you are risk averse you will probably sleep more but eat less.

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