I'm continuing to read Project Risk Management: A Practical Implementation Approach by Mike Bissonette. The current Wikipedia definition of risk and the PMBOK Guide's definition both address risk from the standpoint of threats and opportunities. From the PMBOK Guide:
An event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
This information is added to the Risk Register. Bissonette suggests cause and effect metalanguage to use in the Risk Register (<risk> due to <cause>). The PMBOK Guide Sixth Edition (22.214.171.124) lists information that may be included in the Risk Register, including identified risk, cause, potential risk owners, and potential risk responses.
Thus, the PMBOK guide Risk Management knowledge area processes are approached with an eye to decreasing the likelihood of threats and increasing the likelihood of opportunities.
It's a fascinating book and I'm plowing ahead with it!
I'm currently reading the projectmanagement.com August book club selection, Project Risk Management: A Practical Implementation Approach. Written by Mike Bissonette, this book focuses on what the author terms "holistic risk management" - or, in Bissonette's words, "project management is all about risk management." Bissonette is a certified project and portfolio manager and he's clearly bringing a broader view (beyond individual project management) to this book.
His opening presentation cited the six constraints of project management, moving beyond the classic triple constraint of scope, schedule, and cost. He adds resources, quality (which I focused on during my PMI Willamette Valley PMP instruction this summer), and risk. Obviously, balancing six constraints increases the complexity of the project management work.
Bissonette demonstrated the use of a project risk matrix tool during this session and emphasized that setting of risk tolerance levels in the matrix should fundamentally be a governance decision as opposed to a PM/project team decision. This followed his description of a project scenario in which the PM added more and more risk to a project (by compromising on future activities, eating into reserves, etc.). This is a challenging point for me to work through (the PM is supposed to be "large and in charge"), but Bisonette again pushes the reader to view projects at the portfolio level and at the organization level to enhance project risk management.
The author recommends creating and using in-depth lessons learned documentation in order to reduce the organization's risk for its projects.
He describes Project Risk Management: A Practical Implementation Approach as a reference book - though my current plan is to do a cover-to-cover read and engage with the author and other readers through the closing webinar, which will be held in October. I'm reading this book in the Kindle format and I'm still unsure of how effectively I can use reference format books (beyond a dictionary) on the Kindle.
Finally, this 2016 book references knowledge areas, processes, and tools from the PMBOK Guide, Fifth edition and not the Sixth edition.