Project risk management is the systematic process of identifying, analyzing, and responding to uncertainties that could positively or negatively affect project objectives. Within project management frameworks like PMI's PMBOK, risk encompasses both threats (negative risks) and opportunities (positive risks), requiring proactive strategies for both downside protection and upside capture. Effective risk management doesn't eliminate uncertainty but structures decision-making around it, enabling project teams to reduce exposure to threats while maximizing the potential benefits of opportunities. A crucial insight often overlooked: most project failures stem not from the risks themselves but from the absence of systematic risk processes — identification happens, but analysis, response planning, and monitoring get deprioritized until crisis occurs.