A risk is a possiblepotential event an example is

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Unformatted text preview: ned, most people tend to 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 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 materialize and then become problems. Dr. Maged Ezzat Georgy Textbook Example Crossing the street to catch a meeting. Consequences. Likelihood/chances. Dr. Maged Ezzat Georgy Construction Construction Examples Late delivery of equipment shipped from overseas. Shortage of cash / lack of self-financing. Bad quality from subcontractors. Site interferences due to crowding. Excessive inflation. 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.

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