What is an important factor to consider when assessing project risks?

When assessing project risks, evaluating the likelihood and impact of each potential risk event is crucial. This process involves identifying what risks could occur and determining how likely they are to happen, as well as what consequences they might have on the project if they do occur. This dual assessment enables project managers to prioritize risks and develop effective risk management strategies to mitigate or address them.

Focusing solely on the likelihood helps in understanding which risks are most pressing, while assessing impact reveals the potential severity of those risks. Therefore, by combining these two dimensions, project managers can make informed decisions that enhance the project's chances of success and reduce uncertainties. This approach is fundamental in risk management frameworks and effective project management practices.

In contrast, factors such as team size, budget, and project duration, while relevant to overall project management, do not directly address the core aspect of risk assessment, which is the evaluation of specific risk events that could hinder project objectives.