A Threat is a risk that would have a negative effect on one or more portfolio, program, or project objectives.
It represents uncertainty that, if it occurs, could harm scope, schedule, cost, quality, or stakeholder satisfaction. Identifying and responding to threats is a core function of risk management aimed at minimizing their likelihood or impact.
Key Characteristics
- Negative in Nature – A subset of risks that result in adverse outcomes
- Probability-Based – May or may not occur, but must be planned for
- Requires a Response Strategy – Mitigated, transferred, avoided, or accepted
- Tracked in Risk Register – Continuously monitored and updated throughout the lifecycle
Example Scenarios
- Potential delays from a single-source supplier
- Risk of cost overrun due to unstable material prices
- Possibility of regulatory changes affecting compliance
Role in Risk Management
- Informs Planning and Control – Drives the development of response and contingency plans
- Supports Communication – Enables early discussion with stakeholders and sponsors
- Feeds Monitoring Activities – Reviewed regularly for changes in exposure or impact
- Enables Risk-Based Decision Making – Helps prioritize mitigation resources effectively
See also: Risk, Opportunity, Issue, Risk Register, Contingency Reserve.