Rethinking Risk Management

Definition, Analysis, and Response

COMMENTARY

By Ayman Sadek                          

Egypt

Abstract

This article negotiates the gap between executive and traditional risk managers when it comes to decision-making. We can see that standards such as PMI and ISO 31000 define the risk as effective uncertainty on objectives, but still deal with risk assessment and response as a practice activity governed by scoring and reporting, rather than strategic insights.

On the other side, the executive evaluates the risk according to the strategic impact, and to gain the executive’s cooperation, we present the risk management in their language.

Ultimately, the article highlights the advantages of transforming the concept of uncertainty into an actionable strategic vision.

Introduction

Theoretically, risk management is presented as a sequential, integrated process of planning, identifying, analyzing, and responding.

However, in practice, it is often reduced to a routine reporting process rather than an effective decision-making tool.

To recognize the reasons for that, we need to revisit the main risk management fundamentals.

1️- What Is Risk—Really?

The Project Management Institute (PMI) defines risk as: “Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more objectives.”

According to ISO 31000 (2018), risk is the “effect of uncertainty on objectives. “An effect is a positive or negative deviation from what is expected.

While both definitions are accurate, they become insufficient when applied to executive decision environments, but they give a narrow conception of risk when it comes to reality, where the executive level cannot deal with uncertainty; they can only handle and understand the defined risks. This perspective transforms everything about risk management, from simply recording events and filling models to a comprehensive understanding of the risk impact upon the strategy, assessing the risk, and planning the proper response for each risk, considering that risk is not the event itself, but what the event means for your objectives.

By considering some principles during the following process, we may solve that problem.

More…

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How to cite this article: Sadek, A. (2026).  Rethinking Risk Management: Definition, Analysis, and Response, commentary, PM World Journal, Vol. XV, Issue IX, September.  Available online at https://pmworldjournal.com/wp-content/uploads/2026/09/pmwj168-Sep2026-Sadek-Rethinking-Risk-Management.pdf

About the Author

Ayman Sadek

Egypt

Eng. Ayman Sadek graduated from Helwan University in 1992 with a Bachelor’s degree in Mechanical Engineering. He has been a member and volunteer at PMI, the Project Management Institute, and has been certified as PMP, PgMP, RMP-PMI, and PBA-PMI. He began his career as a Maintenance Engineer, later advancing to Site and Project Manager in industrial construction projects, for example, but not limited to, petrochemicals, cement products, polymers, and polypropylene products. He then joined a maritime company as a Technical Superintendent, overseeing technical operations and projects for ship repairs and shipbuilding. Over time, he progressed to Execution Management, involved in Digital transformation and change management at many companies. He currently serves as the Managing Director of the company and a member of the Board. He can be contacted at: tam330@hotmail.com