Risk consists of three parts: the uncertain situation, the probability of the situation occurring, and the effect of the event (positive or negative) on the success of the project.
The tripartite definition helps with three critical steps in the risk management process:
When you identify risks, it supports a structured risk description ("risk metalanguage") of the form: "When you step in, something can happen that leads to it."
In risk analysis, knowing the possible causes allows to estimate the probability; impact identification is the basis for impact quantification.
When planning risk measures, different parts of the definition offer different ways to respond