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RISK
MANAGEMENT
TERMINOLOGIES
You must know as a Risk Professional

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 RISK

The potential for an event

or condition to have a
negative impact on the
project's objectives

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 RISK
MANAGEMENT

The systematic process of

identifying, analyzing, and
responding to project risks.

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 RISK
IDENTIFICATION

The process of identifying

potential risks that may
affect the project.

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 RISK
ANALYSIS

Evaluating the likelihood

and impact of identified
risks

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 RISK
MITIGATION

Taking actions to reduce

the probability and/or
impact of a risk.

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 CONTINGENCY
PLAN

A predetermined set of
actions to be taken if a
identified risk occurs.

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 RESIDUAL
RISK

The remaining risk after

risk mitigation strategies
have been implemented.

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 RISK
REGISTER

A document that records

identified risks, their
characteristics, and
planned responses.

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 RISK
TOLERANCE

The level of risk that an

organization or project is
willing to accept.

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 RISK
APPETITE

The amount and type of

risk that an organization is
willing to pursue or retain.

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 RISK
OWNER

The individual or entity

responsible for managing a
specific risk.

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 TRIGGER

An event that signals the

need to implement a
contingency plan

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 RISK RESPONSE
PLANNING

Developing strategies to
address and control
identified risks.

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 QUALITATIVE
RISK ANALYSIS

Assessing risks based on

subjective criteria, such as
probability and impact.

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 QUANTITATIVE
RISK ANALYSIS

Assessing risks using

numerical values and
mathematical models.

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 RISK
MATRIX

A visual representation of
risks based on their
probability and impact

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 CRITICAL PATH
ANALYSIS

Identifying activities that

are critical to the project
schedule and most
susceptible to risks

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 RISK BREAKDOWN
STRUCTURE (RBS)

A hierarchical
representation of project
risks.

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 MONTE CARLO
SIMULATION

A statistical technique to
model the probability of
different outcomes in a
process.

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 RISK
COMMUNICATION

The exchange of risk-

related information among
project stakeholders.

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 RISK
MONITORING

Tracking identified risks,

monitoring trigger events,
and evaluating the
effectiveness of risk
responses.
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 RISK-ADJUSTED
COST

Adjusting project costs to

account for potential risks.

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 FORCE MAJEURE

Unforeseeable
circumstances that
prevent the fulfillment of a
contract.

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 SCOPE CREEP

Gradual expansion of
project scope without
proper authorization

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 CHANGE
MANAGEMENT

A systematic approach to
dealing with changes in
project scope.

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 QUALITY
RISK

The risk of delivering a

product or service that
does not meet the required
quality standards.

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 DESIGN RISK

Risks associated with the

design phase of a project.

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CONSTRUCTABILITY
RISK

Risks related to the

feasibility and ease of
construction.

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 SUPPLY
CHAIN RISK

Risks associated with

disruptions in the supply
chain

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 SUBCONTRACTOR
RISK

Risks associated with the

performance of
subcontractors.

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 ENVIRONMENTAL
RISK

Risks associated with

environmental factors,
such as weather
conditions.

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 SAFETY
RISK

Risks related to the health

and safety of workers on
the project.

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 INSURANCE
RISK

Risks related to the

adequacy of insurance
coverage for potential
project losses.

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 FINANCIAL
RISK

Risks related to the

project's financial aspects,
such as budget overruns.

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 REGULATORY
RISK

Risks associated with

changes in regulations or
compliance issues.

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 MARKET
RISK

Risks related to changes in

market conditions
affecting project viability

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 POLITICAL
RISK

Risks associated with

changes in political
conditions impacting the
project.

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 GEOTECHNICAL
RISK

Risks associated with the

ground conditions at the
project site.

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 MATERIAL
AVAILABILITY RISK:

Risks related to the

availability of required
materials.

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 LABOR
PRODUCTIVITY RISK

Risks related to the

productivity and availability
of labor.

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 LIQUIDITY
RISK

Risks related to the

availability of funds to
complete the project.

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 TECHNOLOGY
RISK

Risks associated with the

use of new or unproven
technologies.

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 STAKEHOLDER
RISK

Risks related to the

attitudes and expectations
of project stakeholders.

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 LEGAL RISK

Risks related to potential

legal disputes or litigation.

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 INTELLECTUAL
PROPERTY RISK

Risks related to the

protection of intellectual
property associated with
the project.

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OPERATIONAL RISK

Risks associated with the

ongoing operation and
maintenance of the
completed project.

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 CYBERSECURITY
RISK

Risks related to potential

cyber threats and data
breaches.

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 SYSTEM
INTEGRATION RISK

Risks associated with

integrating various
components and systems.

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 FORCE MAJEURE
CLAUSE

A contractual provision
that excuses parties from
performance in the event
of certain unforeseen
circumstances.
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 RISK ASSESSMENT

The overall process of risk

identification, analysis, and
prioritization.

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THANK YOU FOR
WATCHING

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