Uncertain or chance events that planning cannot overcome or control

Reducing the likelihood an adverse event will occur

Changing the project plan to eliminate the risk or condition

Paying a premium to pass the risk to another party

Requiring Build-Own-Operate-Transfer (BOOT) provisions

An alternative plan that will be used if a possible foreseen risk event actually occurs

A plan of actions that will reduce or mitigate the negative impact (consequences) of a risk event

List expected effects of proposed changes on schedule and budget

Review, evaluate, and approve or disapprove of changes formally

Negotiate and resolve conflicts of change, condition, and cost

These reserves are identified for specific work packages or segments of a project found in the baseline budget or work breakdown structure.

These reserve funds are needed to cover major unforeseen risks and, hence, are applied to the total project.

Just as contingency funds are established to absorb unplanned costs, managers use time
buffers to cushion against potential delays in the project.

details all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status.

is a list of questions that address traditional areas of uncertainty on a project.

provides a basis for prioritizing which risks to address.

is an event that can have a
positive impact on project objectives.

in conjunction with work breakdown structures (WBSs) to help management teams identify and eventually analyze risks.