Risk Breakdown Structure (RBS)

The risk breakdown structure (RBS) is a hierarchical framework of potential sources of risk to a project. Risks include anything unplanned and unforeseen that can have a negative impact on the project’s costs, timing or quality. A good project manager should be able to manage the risks effectively and get the project on track. One of the important tools available for managing risk is the Risk Breakdown Structure (RBS). RBS is a hierarchical representation of risks, starting from higher levels and going down to finer levels of risks. This is similar to the organization of the Work Breakdown Structure (WBS).