Risk analysis is the one of the preliminary analysis of ideas. A risk is any event that could prevent the realization of project objective.The consequences of available alternatives are not known but the probability estimates are possible. Risks is present throughout the project cycle. Higher the risks higher will be the yield and lower the risks lower will be the yield. Risks can be:
- Project Risks: Project Risks are associated with technical aspects of the project. Any project has many unknown factors.
- Process Risks: Process risks are associated with project process, procedures, tools, techniques and performance.