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4 Types of Project Risk - Different Forms of Uncertainty

A project risk is simply ‘uncertainty that can affect outcome’. And when we classify risks, we focus on the types of impact that they can have: - Schedule - Budget - Technology - People - Compliance - Political… - Etc We rarely think of the differences in the kinds of uncertainties. Yet, differences there are. And they are important. The easiest classification is into: - Known-knowns Risks we know all about, but their occurrence remains random Probabilistic risks - aka Aleatory risks - Known-unknowns Risks that arise from gaps in our knowledge, which we are aware about Reducible risks - aka Epistemological risks - Unknown-unknowns – or ‘unk-unks’ Gaps in our knowledge about which we are wholly ignorant Fog of ignorance, or 'Black Swans' - aka Ontological risks For more about Black Swans, see 'What is a Black Swan?'    • What is a Black Swan?   - Unknown-knowns Things we do have knowledge of – but that it has been lost or obscured Hidden knowledge - aka Latent risks Recommended Videos. Carefully curated video recommendations for you: - What is Project Risk Management? ...    • What is Project Risk Management? Proj...   - What is Risk Tolerance? ...    • What is Risk Tolerance? Project Manag...   - How to Manage Project Risk ...    • Project Risk Management - How to Mana...   - What to Put in Your Risk Register (Risk Log) ...    • What to Put in Your Risk Register (Ri...   - Risk Management - 5 Tips to do it right ...    • Risk Management - 5 Tips to Do it Right   For more great Project Management videos, please subscribe to this channel:    / @onlinepmcourses   For all our great Project Management articles and resources, please check out the OnlinePMCourses website: https://onlinepmcourses.com/ For basic Management Courses - free training hosted on YouTube, with 2 new management lessons a week, check out our sister channel, Management Courses:    / managementcourses   For more of our Project Management videos in themed collections, join our Free Academy of Project Management: https://onlinepmcourses.com/free-acad... #Project #ProjectManagement #MikeClayton