ABSTRACT
Risk is the occurrence of an event that has consequences for, or impacts on, projects. The risk of succumbing to disease due to lack of proper medical attention is higher in Amazonia than it is in London. Moral risks may involve fidelity issues with loose morals resulting in divorce for couples who appear to be happily married. There are many ways to categorize risks: Acceptable vs. non-acceptable risks, short-term vs. long-term risks, positive vs. negative risks, manageable vs. non-manageable risks and internal vs. external risks. Short-term risks are risks having an immediate impact and their effect may be decisive. Internal risks are unique to a project and not caused by something outside the project boundaries. Probability, frequency, impact, importance, and exposure are the necessary factors in analysing the four vital steps in risk management. These steps are: risk identification; risk analysis; risk control; and risk reporting. Project managers are mistaken if they believe that risk management is a linear process.
