How Does PRINCE2 Use the Word Risk ?

Normally, when you talk about facing risk, you think of it as a negative thing. My dictionary defines risk as “the possibility of incurring misfortune or loss.” For example, it might rain, which would slow down the building of your hotel. However, PRINCE2 also thinks of risk as the possibility of good things occurring. For example, the price of concrete might fall and reduce your construction costs.

The definition of risk according to Managing Successful Projects with PRINCE2 (Stationery Office, 2009) is “An uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives.” There are two types of uncertain events:

Threats Threats are events that, if they occur, would have a negative effect on the project.