How is risk management defined?

The Word Risk signifies or means Danger and our perception is that, whenever it happens, the result will be negative or something undesirable.

For example, one of the obvious schedule objectives for a project is to complete the project by the scheduled deadline. If a risk related to the schedule occurs, it can delay the completion of the project, or it can make it possible to finish the project earlier. So, the two characteristics of a risk in project management are the following:

• It stems from elements of uncertainty.

• It might have negative or positive effects on meeting the project objectives.

Risk management includes planning risk management, identifying and analyzing the risks, preparing the response plan, monitoring the risk, and implementing the risk response if the risk occurs.