Types of Risk

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For the PMP exam, know that risks can be categorized under two main types:

Business  Risk of a gain or loss
Pure (Insurable) Risk  Only a risk of loss (e.g., fire, flood, theft…)

When identifying and categorizing your project risks, don’t forget that risks can also be positive.  Many mistakenly only list the negative.  Regardless, the purpose of risk management is to lower it.  Again, business risk can be beneficial or detrimental.  Pure risk is always detrimental. 

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