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Project Risk Management and Decision Analysis

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Threats and Opportunities

Risks can be threats, opportunities or both. Threats and opportunities are defined for risk assignment depending on results of the risk outcome. Negative risk outcomes mean opportunities.

Example 1:
Risk
: Change Requirements
Outcome: Fixed Delay
Result: 2 days
This is a threat

Example 2:

Risk: Change of technology
Outcome: Delay in technology introduction
Result: -10% Low
This is an opportunity: a negative number indicates that this is an acceleration rather than a delay of the technology introduction

Example 3:
Risk: Chance of supplier
Outcome: fixed cost increase
Result for mutually exclusive alternative 1: $30,000
Result for mutually exclusive alternative 2: -$20,000
This is both a threat and an opportunity depending upon the supplier.


See also

Risks in RiskyProject

Risk Matrix

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