Uncertainties that occur and cause damage to the project. It can be project threatening , any problems or lost of some opportunity. Which will make it difficult to achieve the objectives.
For construction project , It have direct impact on the budget , construction time and quality of the project. This risks or uncertainties may vary depending on size of project , the complexity of the project , construction site , those involved in the project ,economic condition etc.
There are three main components of risk.
1. Risk Event
2. Uncertainty
3. Damage
It can conclude that risk = f (Risk Event , Uncertainty , Damage)
Uncertainty , risk , opportunity and threat have relationship which each other. The unknown (uncertainty) can result favorable (Opportunity) or unfavorable (Risk)