Fundamentals of Risk Management

Glossary of terms
441
Term
Definition
reference
Preventive control
Type of control that is designed to eliminate 
the possibility of an undesirable risk 
materializing
Table 16.1
Principles of risk 
management
Set of attributes defining the features of 
successful (enterprise) risk management, 
summarized as proportionate, aligned, 
comprehensive, embedded and dynamic 
(PACED)
Table 5.1
Project risk
Risk that could cause doubt about the ability 
to deliver a project on time, within budget 
and to quality
Chapter 31
Project risk assessment 
and management
Process developed by the Association for 
Project Management that enables the 
successful analysis and management of the 
risks associated with a project
Table 31.1
Proportionate, aligned, 
comprehensive, embedded 
and dynamic (PACED)
See ‘Principles of risk management’
Table 5.1
Reduce
See ‘Treat’
Table 15.1
Residual risk
See ‘Current risk’
Figure 23.1
Retain
See ‘Tolerate’
Table 15.1
Risk
Defined in Guide 73 as ‘effect of uncertainty 
on objectives’ – see Table 1.1 for a range of 
definitions
Table 1.1
Risk appetite
Defined in Guide 73 as ‘amount and type of 
risk that an organization is willing to pursue 
or retain’ but definitions of risk appetite can 
vary considerably
Table 25.1
Risk architecture, strategy 
and protocols (RASP)
See ‘Risk management framework’
Chapter 21
Risk assessment
Means by which significant risks are 
evaluated and prioritized by undertaking
the three stages of ‘Risk recognition’,
‘Risk rating’ and ‘Risk ranking’
Chapter 10

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