Definitions of Risk – opportunity or threat?
For the past few years there has been debate around the definition of risk within the PMI® Risk Special Interest Groups (SIG). The discussion centered on whether risk management should be limited to threats to project success, or whether risk management should also include opportunities that might improve the chances for project success.

Guess what. You don’t have to worry about it. The processes and techniques are pretty much the same regardless. Everyone seems to understand that events can happen in projects that cause quality, scope, schedule or cost to suffer. But some people have difficulty realizing that risk sometimes is taken consciously to enhance an opportunity. For example, if you can deliver your project a month early, the company may gain several points of market share. Now that’s an opportunity many would want, and the risks of fast tracking the schedule to make it happen are identified and managed exactly the same as a threat.

However, this issue has been settled with the publication of the PMBOK® Third Edition. It clearly re-emphasizes the definition on the last page. “Positive or negative effects” means “opportunities or threats.” You will see an example from the new PMBOK® later in this lesson.