Project Risk Management
Expert-defined terms from the Professional Certificate in Project Planning And Scheduling course at LearnUNI. Free to read, free to share, paired with a professional course.
A #
A
Acceptance Criteria – The specific conditions that a deliverable must sat… #
Related terms: Deliverable, Scope. Example: A software module must process 10,000 transactions per hour before it is accepted.
Activity Risk Register – A subsidiary register that captures risks associ… #
Related terms: Risk Register, Work Breakdown Structure (WBS). Used to trace risk exposure at the task level, enabling targeted mitigation.
Aggregate Risk – The combined effect of multiple individual risks on over… #
Related terms: Risk Exposure, Risk Quantification. Challenge: Correlation among risks can make aggregation complex; overly simplistic addition may misrepresent true impact.
Assumption – A factor considered to be true, real, or certain without pro… #
Related terms: Assumption Log, Uncertainty. Example: Assuming that a key supplier will deliver on schedule; if the assumption proves false, a risk event may occur.
Authority Matrix – A document that defines decision‑making rights and res… #
Related terms: Governance, Responsibility Assignment Matrix (RAM). Helps ensure that the appropriate level of management approves risk mitigation actions.
B #
B
Baseline Risk Profile – The initial assessment of risk exposure against w… #
Related terms: Risk Baseline, Risk Monitoring. Provides a reference point for evaluating the effectiveness of risk treatment over time.
Benefit‑Risk Analysis – A technique that compares the potential benefits… #
Related terms: Cost‑Benefit Analysis, Risk Response Planning. Example: Investing in a redundant system may increase reliability but also raise budget; the analysis quantifies net value.
Black‑Swans – Extremely rare, high‑impact events that are difficult to pr… #
Related terms: Tail Risk, Uncertainty. While traditional risk registers may miss them, scenario planning can help identify possible black‑swans.
Bow‑Tie Analysis – A visual method that maps the cause (left side) and co… #
” Related terms: Fault Tree Analysis, Event Tree Analysis. Useful for communicating complex risk pathways to stakeholders.
C #
C
Cause‑Effect Diagram – Also known as a fishbone diagram; it categorizes p… #
Related terms: Root Cause Analysis, Risk Identification. Helps teams explore multiple dimensions (people, process, technology) of a risk.
Change Control Board (CCB) – A formal group that reviews and approves cha… #
Related terms: Change Management, Risk Register. A risk‑induced change request passes through the CCB for authorization.
Contingency Reserve – A budget or time buffer set aside to address identi… #
Related terms: Management Reserve, Risk Response. Example: Adding two extra days to a critical path activity to absorb potential delays.
Control Risk – The risk that internal controls will fail to prevent or de… #
Related terms: Control Effectiveness, Audit. In project risk management, weak governance can be a control risk that jeopardizes quality or compliance.
Critical Risk – A risk with a high probability of occurrence and a severe… #
Related terms: Risk Prioritization, Risk Owner. Example: A regulatory change that could halt project work if not addressed promptly.
Critical Path Method (CPM) – A scheduling technique that identifies the l… #
Related terms: Float, Schedule Risk Analysis.
D #
D
Decision Tree Analysis – A quantitative technique that evaluates multiple… #
Related terms: Monte Carlo Simulation, Expected Value. Useful for choosing among alternative risk responses.
Delphi Technique – An iterative expert‑survey method used to achieve cons… #
Related terms: Expert Judgment, Risk Workshops. Anonymity reduces groupthink and bias.
Dependency Risk – The risk that a project's success is contingent on exte… #
Related terms: External Dependency, Integrated Master Schedule. Example: Reliance on a government permit that may be delayed.
Dereference Risk – The risk that a previously documented risk becomes irr… #
Related terms: Risk Closure, Risk Review. Regular reviews help identify dereferenced risks for removal.
Discrete Risk – A risk that can be identified as a distinct event with sp… #
Related terms: Event‑Based Risk, Continuous Risk. Example: Equipment failure of a specific machine.
E #
E
Emerging Risk – A risk that is newly identified or evolving, often due to… #
Related terms: Risk Monitoring, Trend Analysis. Requires proactive scanning of external indicators.
Enterprise Risk Management (ERM) – A holistic approach that aligns projec… #
Related terms: Strategic Risk, Corporate Governance. ERM ensures that project risks are considered within the broader risk appetite.
Event‑Based Risk – A risk defined by a specific occurrence, such as a nat… #
Related terms: Discrete Risk, Continuous Risk.
Expected Monetary Value (EMV) – The product of a risk’s probability and i… #
Related terms: Risk Quantification, Decision Tree. Example: A 20 % chance of a $50,000 cost overrun yields an EMV of $10,000.
Expert Judgment – Input from individuals with specialized knowledge, used… #
Related terms: Delphi Technique, Risk Identification. The reliability of expert judgment depends on experience and independence.
F #
F
Failure Mode and Effects Analysis (FMEA) – A systematic approach to ident… #
Related terms: Root Cause Analysis, Risk Register. Common in engineering‑focused projects.
Float (Slack) – The amount of time that a non‑critical activity can be de… #
Related terms: Critical Path, Schedule Risk. Low float activities often become focus points for risk mitigation.
Force‑Field Analysis – A technique that evaluates driving and restraining… #
Related terms: Stakeholder Analysis, Risk Assessment. Helps visualize why a risk may or may not materialize.
Frequentist Probability – Probability derived from historical data or obs… #
Related terms: Subjective Probability, Monte Carlo Simulation. Used when sufficient empirical data exist.
G #
G
Gate Review – A formal checkpoint where risk status, among other metrics,… #
Related terms: Stage‑Gate Process, Risk Review.
Geopolitical Risk – Risk arising from political changes, instability, or… #
Related terms: External Risk, Strategic Risk. Example: Trade embargoes affecting supply chains.
Governance Framework – The set of policies, procedures, and structures th… #
Related terms: Authority Matrix, Risk Management Plan.
H #
H
Hazard Identification – The process of recognizing potential sources of h… #
Related terms: Risk Identification, Safety Risk. Often uses checklists or brainstorming sessions.
Heat Map – A visual matrix that plots risk probability against impact, us… #
Related terms: Risk Matrix, Risk Prioritization. Supports quick stakeholder communication.
Historical Data Analysis – Examination of past project performance to inf… #
Related terms: EMV, Monte Carlo Simulation. Accuracy depends on data relevance and quality.
I #
I
Impact – The effect a risk event would have on project objectives, typica… #
Related terms: Probability, Risk Rating.
Influence Diagram – A graphical representation of decision problems showi… #
Related terms: Decision Tree, Monte Carlo Simulation.
Insider Risk – Risk originating from individuals within the project organ… #
Related terms: Human Resource Risk, Security Risk.
Integration Risk – The risk that separate project components will not wor… #
Related terms: System Integration, Scope. Example: Mismatched data formats between two subsystems.
J #
J
Joint Risk Review – A collaborative session involving multiple stakeholde… #
Related terms: Risk Workshop, Stakeholder Engagement.
K #
K
Key Risk Indicator (KRI) – A metric that signals a change in risk exposur… #
Related terms: Monitoring, Threshold. Example: Supplier on‑time delivery rate dropping below 90 % triggers a KRI alert.
L #
L
Lag – The intentional delay between the start or finish of predecessor an… #
Related terms: Schedule Logic, Float. Incorrect lag estimation can become a schedule risk.
Likelihood – Synonymous with probability; the chance that a risk event wi… #
Related terms: Impact, Risk Rating.
Loss Event – The actual occurrence of a risk that results in a negative i… #
Related terms: Risk Trigger, Impact.
M #
M
Monte Carlo Simulation – A quantitative technique that runs thousands of… #
Related terms: EMV, Probability Distribution. Provides a probability distribution of project outcomes.
Mitigation – A risk response strategy that reduces either the probability… #
Related terms: Risk Response Planning, Contingency Reserve. Example: Conducting additional testing to lower defect‑related risk.
Mitigation Plan – A documented set of actions designed to reduce a specif… #
Related terms: Risk Response, Owner. Should include responsibilities, timelines, and performance measures.
Monte Carlo Distribution Types – Common probability distributions used in… #
Related terms: Risk Modeling, Parameter Estimation.
N #
N
Negative Risk – A risk that threatens to cause loss or damage; also calle… #
Related terms: Opportunity, Risk Register.
Network Diagram – A visual representation of project activities and their… #
Related terms: CPM, PERT.
New‑Product Development Risk – Risks specific to projects that create new… #
Related terms: Strategic Risk, Innovation Risk.
O #
O
Opportunity – A positive risk that, if it occurs, can provide a benefit t… #
Related terms: Negative Risk, Risk Register. Opportunity response strategies include exploitation, enhancement, and sharing.
Owner (Risk Owner) – The individual assigned accountability for managing… #
Related terms: Responsibility Assignment Matrix, Stakeholder.
Probability Distribution – The mathematical function that describes the l… #
Related terms: Monte Carlo Simulation, Triangular Distribution.
Qualitative Risk Analysis – The process of assessing risk probability and… #
G., High, medium, low). Related terms: Risk Matrix, Prioritization.
Quantitative Risk Analysis – The numerical evaluation of risk exposure, o… #
Related terms: Qualitative Analysis, Risk Modeling.
R #
R
Risk Appetite – The amount and type of risk an organization is willing to… #
Related terms: Risk Tolerance, Strategic Alignment. Guides decision‑making on which risks to accept.
Risk Assessment – The combined process of identifying, analyzing, and eva… #
Related terms: Risk Identification, Risk Analysis.
Risk Breakdown Structure (RBS) – A hierarchical decomposition of risks by… #
Related terms: RBS, Risk Register. Helps ensure comprehensive coverage across risk domains.
Risk Calendar – A schedule that aligns risk reviews, monitoring activitie… #
Related terms: Risk Management Plan, Milestones.
Risk Category – A grouping of risks based on common sources, such as tech… #
Related terms: RBS, Risk Classification.
Risk Communication – The systematic exchange of risk information among st… #
Related terms: Stakeholder Management, Reporting. Effective communication builds trust and facilitates timely response.
Risk Contingency – A pre‑planned response that is executed only if the ri… #
Related terms: Contingency Reserve, Trigger.
Risk Dependency – The relationship where one risk’s occurrence influences… #
Related terms: Correlation, Risk Aggregation.
Risk Event – The specific occurrence that triggers the impact on project… #
Related terms: Trigger, Loss Event.
Risk Exposure – The aggregate impact of all identified risks, often expre… #
Related terms: EMV, Aggregate Risk.
Risk Governance – The structure, policies, and procedures that ensure ris… #
Related terms: Framework, Authority Matrix.
Risk Identification – The process of determining which risks may affect t… #
Related terms: Brainstorming, Checklists.
Risk Impact Matrix – A tool that categorizes risks based on combined prob… #
Related terms: Heat Map, Prioritization.
Risk Indicator – A metric that signals a change in risk status, often use… #
Related terms: KRI, Threshold.
Risk Management Plan – The document that defines how risk processes will… #
Related terms: Project Management Plan, Governance Framework.
Risk Management Process – The series of activities #
Identification, analysis, response planning, monitoring, and reporting. Related terms: PMBOK, PRINCE2.
Risk Owner – The person accountable for a specific risk’s response and mo… #
Risk Owner – The person accountable for a specific risk’s response and monitoring.
Risk Register – The central repository that captures all identified risks… #
Related terms: Risk Log, RBS.
Risk Response – The action taken to address a risk, which may involve avo… #
Related terms: Mitigation Plan, Contingency.
Risk Response Planning – The process of developing options and actions to… #
Related terms: Risk Register, Owner.
Risk Scoring – Assigning numerical values to probability and impact to ca… #
Risk Scoring – Assigning numerical values to probability and impact to calculate a risk rating.
Risk Sensitivity Analysis – Examining how changes in assumptions affect o… #
Related terms: Monte Carlo Simulation, Scenario Analysis.
Risk Tolerance – The acceptable deviation from risk appetite for a specif… #
Related terms: Risk Threshold, Stakeholder Expectations.
Risk Threshold – The level of risk exposure at which a specific response… #
Related terms: Risk Tolerance, KRI.
Risk Transfer – Shifting risk ownership to a third party, commonly via in… #
Related terms: Risk Sharing, Contractual Clauses.
Risk Trigger – An indicator or event that signals the likely occurrence o… #
Related terms: Early Warning, Monitoring.
Risk Treatment – The collective term for all response actions, including… #
Related terms: Risk Response Planning, Contingency.
Risk Triage – The rapid initial assessment to categorize risks for furthe… #
Related terms: Screening, Prioritization.
Risk Tracking – Ongoing monitoring of risk status, response implementatio… #
Related terms: Risk Register Updates, Dashboard.
Risk Type – Classification of risk based on its source, such as technical… #
Related terms: Risk Category, RBS.
Risk Uncertainty – The lack of certainty about the probability or impact… #
Related terms: Assumption, Variability.
S #
S
Schedule Risk – The risk that the project timeline will be extended beyon… #
Related terms: Critical Path, Float.
Scope Creep – The uncontrolled expansion of project scope, often a risk t… #
Scope Creep – The uncontrolled expansion of project scope, often a risk to schedule and budget.
Stakeholder Analysis – The process of identifying stakeholders and assess… #
Related terms: Stakeholder Register, Risk Communication.
Strategic Risk – Risks that affect the organization’s long‑term objective… #
Related terms: Enterprise Risk Management, External Risk.
Stress Testing – Applying extreme scenarios to the project model to evalu… #
Related terms: Scenario Analysis, Monte Carlo.
Sub‑Risk – A risk that is part of a larger, parent risk, often with its o… #
Related terms: Risk Hierarchy, RBS.
T #
T
Tail Risk – The risk of rare, high‑impact events that lie in the extreme… #
Related terms: Black‑Swans, Extreme Value Theory.
Threat – Another term for a negative risk that can cause loss or damage #
Threat – Another term for a negative risk that can cause loss or damage.
Threshold Analysis – Determining the point at which a risk’s probability… #
Related terms: Risk Tolerance, Trigger.
Time Buffer – Additional time added to the schedule to accommodate uncert… #
Related terms: Contingency Reserve, Float.
Trigger Event – A specific occurrence that activates a pre‑planned contin… #
Related terms: Risk Trigger, Contingency Plan.
U #
U
Uncertainty – The state of having limited knowledge about the probability… #
Related terms: Assumption, Risk Modeling.
Unmitigated Risk – The level of risk exposure before any response actions… #
Related terms: Baseline Risk Profile, Risk Exposure.
V #
V
Variance Analysis – Comparing planned versus actual performance to identi… #
Related terms: Earned Value Management, Control.
Value at Risk (VaR) – A statistical technique that estimates the maximum… #
Related terms: Quantitative Risk Analysis, Monte Carlo.
W #
W
Weighted Scoring Model – A decision‑making tool that assigns weights to r… #
G., Cost, schedule, reputation) to prioritize responses. Related terms: Risk Scoring, Prioritization.
Work Breakdown Structure (WBS) – A hierarchical decomposition of project… #
Related terms: Activity Risk Register, Scope.
X #
X
eXtreme Risk Assessment – An approach that focuses on high‑impact, low‑pr… #
Related terms: Tail Risk, Stress Testing.
Y #
Y
Yield Risk – The risk that a project’s output will not meet expected perf… #
Related terms: Technical Risk, Quality Risk.
Z #
Z
Zero‑Based Risk Review – A comprehensive reassessment of all risks as if… #
Related terms: Risk Audit, Gate Review.