6 Define risk

PMI (Project Management Institute) defines Project “risk” as, “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.”

Risk of an event occurring is typically described using two components:

1. The probability that the event will occur, otherwise known as likelihood
2. The impact or consequence if the event does occur.

There are other definitions. Have a guess at where you think the following definition comes from.