TOPIC: Risk Question

According to one of the lessons on Risk Management , the definition for Project Risk is an uncertain event or condition that if it occurs, has a positive or negative effect on one or more project objectives such as scope, schedule, cost, and quality.

How can something with the word risk in it have a positive effect on a project? What would be an example of that?

Risk is just an umbrella term. The risk register is referred to as the Risk and Opportunity Worksheet in my organization. Opportunity is a positive risk or something that will have a positive impact on the project.

A risk may be that welders are scarce in your area and may impact progress and labor rates.

An opportunity may be a that due to commodity pricing fluctuations and a shortage of a particular resource, a market is developing for some of your scrap material for which you had previously assumed no scrap value.

Example 1: a competitor who is offering the same product as your organization is facing internal issues. this is an opportunity for your organization as you can easily acquire good resources from their team, expand your market share, etc.

Example 2: a change in management may take place at the customer side, and a more supportive stakeholder will be taking more responsibilities and will be having more power to support your project.

Example 3: one of the low performing employees is leaving your organization and you will have teh chance to replace him with a more capable team member.