Types of Risk

For the PMP exam, know that risks can be categorized under two main types:

Business  Risk of a gain or loss
Pure (Insurable) Risk  Only a risk of loss (e.g., fire, flood, theft…)

When identifying and categorizing your project risks, don’t forget that risks can also be positive.  Many mistakenly only list the negative.  Regardless, the purpose of risk management is to lower it.  Again, business risk can be beneficial or detrimental.  Pure risk is always detrimental. 

About Derek Huether

I'm an Enterprise Agile Coach at LeadingAgile. I have a goal to take the hand waving out of Agile, Kanban, & Scrum. I’m a strange combination of a little OCD, a little ADHD, a lot of grit, and a lot of drive. I come from a traditional PM background but I don't give points for stuff done behind the scenes. The only thing that counts is what you get done and delivered. Author of Zombie Project Management (available on Amazon)