Which of the following is the most accurate definition of a project risk?

Which of the following is the most accurate definition of a project risk?
A . It is an unknown event that can affect the project scope.
B . It is an uncertain event or condition within the project execution.
C . It is an uncertain event that can affect the project costs.
D . It is an uncertain event that can affect at least one project objective.

View Answer

Answer: D

Explanation:

Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project objective. Project risk is concerned with the expected value of one or more results of one or more future events in a project. It is an uncertain condition that, if it occurs, has an effect on at least one project objective. Objectives can be scope, schedule, cost, and quality. Project risk is always in the future.

Incorrect Answers:

A: Risk is not unknown, it is uncertain; in addition, the event can affect at least one project objective – not just the project scope.

B: This statement is almost true, but the event does not have to happen within project execution.

C: Risks can affect time, costs, or scope, rather affecting only cost.