Principles and Concepts

 Project background Information , Information from before

the project was approved , articles written about similar projects and
other such information.
 Assumptions, Factors that are considered to be true without
any proof for planning purposes only , they are part of progressive
elaboration as they should be reassessed during project life cycle,
they contain a degree of risk.
 Benefit , Positive effect on project opportunity arising from
occurrence of an opportunity.
 Bias, In some cases the source of information exhibit a
preference that inhibits a partial prejudgment , they are cognitive and
motivational bias.
 Cause, Events which might give rise into risks.
 Impact, Measure of the effect of a risk on one or more objectives
if it occurs.
 Constraint , Things which limits team options , an applicable
restriction or limitation, either internal or external.
 Contingency Reserve, Amount of funds , budget or time
needed above the estimate to reduce the risk of overruns of project
objectives.
 Contingency Plan, Plan developed in anticipation of
occurrence of risk , to be executed if predetermined risk occurs.
 Decision Tree analysis, Diagram which describes a decision
under consideration of choosing one or another alternative, used
when future scenarios are uncertain.\
 Risk management Department, Department that supplies
policies and assistance with risk management efforts.
 Effect, Future event which would directly affect one or more of
the project objectives.
 Risk, Uncertain event or condition that if occurred will affect
project objectives in a positive or negative way.
 Risk Rating, a number between 1 and 10 chosen to evaluate
the probability and impact of a risk .
 Risk Score, Multiply of probability by impact, gives numerical
value of each risk .
 Project risk score, sum of individual risk scores.