Project risk is the cumulative effect of the chances that uncertain occurrences will adversely affect project objectives. Project risk management is the art and science of identifying, assessing and responding to project risk throughout the life of a project and in the best interests of its objectives.
Essentially, the goal of project risk management is to increase the probability and impact of positive events and to decrease the probability and impact of events that will negatively impact on the project.
Use the Project Risks list to specify and track threats to the success of the project. Some project template will have some risk predefined (for example the MSF template has 10). This is because many projects face the same type of risks (e.g. requirements keep on changing). Having a plan in place to deal with these risks vastly increases the likelihood of project success.
The Project Risks list has the following options:
Anything changes
I am made owner of a Risk
A Risk is assigned to me
A Risk becomes complete
A high priority Risk changes
Someone else changes a Risk owned by me
Someone else changes a Risk assigned to me
Someone else changes a Risk
Someone else changes a Risk created by me
Someone else changes a Risk last modified by me
Someone changes an item that appears in the following view: