Introduction to project management/IPM103/Risk/Glossary

Glossary

Contingencies

"A Contingency is the planned allotment of time and cost for unforeseeable elements with a project. Including contingencies will increase the confidence of the overall project."

Risk

"There may be potential external events that will have a negative impact on your project if they occur. Risk refers to the combination of the probability the event will occur and the impact on the project if the event occurs. If the combination of the probability of the occurrence and the impact to the project is too high, you should identify the potential event as a risk and put a proactive plan in place to manage the risk."

Risk management planning

"The process that determines how risks will be managed for a project. It describes how risks are defined, monitored, and controlled throughout the project."