This document discusses risk and risk-based testing in software development. It defines risk as the possibility of a system or software failing to meet a customer or stakeholder expectation. Product risks include issues with functionality, security, reliability, usability, maintainability and performance. Risk-based testing prioritizes and emphasizes tests according to identified risks. It aims to reduce the likelihood of defects in critical areas. Project risks also apply to testing and include logistical issues, excessive changes invalidating tests, and insufficient testing environments. Managing risks appropriately involves understanding likelihood and impact, and balancing risks with quality, features and schedules.