Risks & Issues

Risk is something that is likely to occur and has a direct bearing on cost, schedule, or quality (or all the three) of a project. Risks can be prevented from becoming issues through proper Risk Management. Risks should be identified, categorized, prioritized, and discussed on a regular basis (team meetings).

Issue is something that's already there. It is a "risk that has occurred". Issues can only be dealt with, but cannot be prevented. Issues are limitations that we have to live with or we have to find a suitable workaround for them.