How is project risk defined?

Project risk is fundamentally defined as the likelihood of an event that may adversely affect the project's objectives. This encompasses various uncertainties that can influence project outcomes, including potential delays, budget overruns, resource shortages, or any other factors that could impede progress or success. Recognizing and assessing these risks is critical for effective project management, as it allows teams to develop strategies to mitigate or manage them proactively.

In the context of project management, understanding the concept of risk is vital for maintaining control over timelines and expectations. Project risks are not only about the negative occurrences, but they're often the first step towards implementing risk management strategies, ensuring that teams are prepared for potential challenges that could threaten project goals. This definition aligns accurately with industry standards and practices, emphasizing the proactive identification and assessment of risks to safeguard project delivery.

The other options, while related to project management concepts, do not accurately capture the essence of what constitutes a project risk. They suggest outcomes or potential benefits rather than focusing on the negative implications inherent in project risks.