The project risk is futuristic uncertainty that may occur during life of a project and can affect project
deliverables. The risk can be recorded through cause-effect analysis. The cause of risk could be some
hypothesis, limitation, requirement, etc. and the effect could be slippage of timeline, cost
overrun/save, performance degradation/improvement, etc. of the project for example – new
regulatory compliance may be enforced on power projects, economic uncertainty may lead to higher
cost of labour, etc.