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1. What is project risk?
Project risk is anything that compromises the safety of efficacy of the project result.
Project risk is anything that causes a threat to the project’s ability to complete on time and on budget.
Project risk is an uncertain condition that, if it occurs, could have a positive or negative effect on the project.
2. What is the difference between positive and negative project risk?
Positive risks are project activities that make money; negative risks are project activities that cost money.
Both are uncertain, but positive risk results in opportunities to improve project performance and negative risk results in threats to project performance.
There is no such thing as positive risk.
3. What must a project leader do to eliminate project risk?
Project risk cannot be eliminated, it should be proactively managed.
Identifying risk, analyzing risk, and implementing effective risk response plans will eliminate project risk.
Following the approved organizational project management methodology will eliminate project risk.
4. How does the impact of negative risks change during the lifecycle of the project?
The impact increases because there is less time and money available to address the risk.
The impact decreases because there are few things that can go wrong late in a project.
The impact is not affected by the lifecycle – the project must respond to a negative risk whenever it occurs.
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