Each project is faced with many types of risks. These include:
Analysis and management of project risks is also a very important activity that a project manager must perform in order to improve the chances for the project. Robert Charette defines risk as follows:
Risk concerns future happenings. Today and yesterday are beyond active concern. The question is, can we, therefore, by changing our action today create and opportunity for a different and hopefully better situation for ourselves tomorrow. This means, second, that risk involves change, such as changes in mind, opinion, action, or places. … [Third,] risks involve choice, and the uncertainty that choice itself entails.