Risk and issue are terms that are frequently used interchangeably. While they are interrelated and share some common characteristics – they are not the same thing.
A risk refers to a potential problem or event that may occur in the future, which could have an impact on an organization. Risks are uncertain and may or may not materialize. They are often identified in advance, allowing for proactive measures to be taken to mitigate them. For example, we may identify a risk of supply chain disruptions due to natural disasters or economic changes.
An issue is something that has already occurred. Issues are actual problems that require attention and resolution. Unlike risks, issues are certain and have a direct impact on an organization. For instance, a software team may encounter an issue with a bug that is causing system crashes, requiring immediate fixing. Understanding the difference between risks and issues is crucial for effective risk management and issue resolution, enabling proactive and reactive measures to be taken to minimize their impact.
