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Unformatted text preview: ned, most people tend
to think of negative consequences.
A risk is a possible/potential event.
An example is fluctuations in exchange rate. Dr. Maged Ezzat Georgy Meaning of “ RISK “
Any possible/potential event could have either:
◦ Positive consequences (opportunity).
◦ Negative consequences (threats). Typically, we get more concerned about threats than
opportunities. Dr. Maged Ezzat Georgy Risks
Risks vs. Problems
Risks aren’t problems.
Problems are negative events that are in the process
of occurring right now.
Risks are potential/possible events that can
materialize and then become problems. Dr. Maged Ezzat Georgy Textbook Example
Crossing the street to catch a meeting.
Likelihood/chances. Dr. Maged Ezzat Georgy Construction
Late delivery of equipment shipped from overseas.
Shortage of cash / lack of self-financing.
Bad quality from subcontractors.
Site interferences due to crowding.
etc. Dr. Maged Ezzat Georgy A Hint on Risk Consequences
Remember that the extent to which a proje...
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This document was uploaded on 01/22/2014.
- Winter '14