11 - Project Risk Management Flashcards
Acceptance
Risk Response
Good for + and - risks
Often used for smaller risks in project.
Ambiguity Risks
Risks that have an uncertain, unclear nature, such as new laws or regulations, the marketplace conditions, and other risks that are nearly impossible to predict
Avoidance
A risk response to avoid the risk
Brainstorming
The most common approach to risk identification
Usually completed by a project team with subject matter experts to identifyt the risks within the project
Business risks
These risks may have negative or positive outcomes.
Examples include using a less experienced worker to complete a task, allowing phases to overlap, forging the expense of formal training for on-the-job education.
Cardinal scales
Ranking approach to identify probability and impact using a numerical value (0.01 very low to 1.0 certain)
Checklists
Quick/cost effective risk identification approach
Data precision
Consideration of the risk ranking scores that takes into account any bias, accuracy of the data submitted, and the reliability of the nature of the data submitted.
Decision tree
A method to determine which of two or more decisions is the best one.
Examines costs and benefits of each decisions outcome and weighs probability of success for each decision.
Delphi technique
An anonymous method of querying experts about foreseeable risks within a project, phase, or component of a project.
Results of the survey are analyzed by a third party then circulated to experts. Several rounds of anonymous discussion with the technique, wihtout fear of backlash or offending other participants i nthe process.
Goal is to gain consesnsus on project risks within the prkject
Enhancing
Risk response that attempts to enhance the conditions to ensure a positive risk event will likely happen
Escalating
Risk reponse for + and - risks. Raise it to more sr. member.
Expected monetary value (EVM)
The monetary value of a risk exposure based on the risk’s probability and impact on the risk matrix.
Used in quantitative risk analysis because is quantifies the risk exposure, .
Exploit
Risk reponse that takes advantage of the positive risks wihtin a project.
External risks
Risks outside the project, but that directly affect it.
e.g. legal issues, weather, etc.
Flowcharts
System or process flowcharts show the replationship between components and how the overall process works.
Useful for identifygin risks between system components.
Influence diagrams
Graphical representation of situations showing causal influences, time ordering, other relationships among variables and outcomes
Identifies all elements, variables, decisions, and objectives and also how each factor may influence another.
Ishikawa diagrams
Cause and effect fishbone diagram.
Used to find root cause of factors that are causing risks in the project
Low-priority risk watch list
Low priority risks are identified and assigned to a watch list for periodic monitoring
NMitigation
Risk response effort to reduce the probability and/or impact of an identified risk in the project
Monte carlo technique
Simulation technique used to simulate all outcomes based on variables inputted.
Ordinal scales
Ranking approach that ranks outcomes from very low to very high
Organizational risks
Performing organization can contribute to the projects risks through unreasonable cost, time, and scope expectations; poor project prioritization; inadequuate funding or the disruption of funding; and ocmpletion wiht other projects for internal resources.
PESTLE
A prompt list used for risk identification.
Examines risks in the: Political Economical Social Technological Legal Environmental ....domains.
Probability and impact matrix
Matrix that ranks the probability of r risk event occuring and its impact on the project if the event does happen; used in qual and quant analysis
Project management risks
Risk deal with faults in the mgmt of the project:
..bad allocation of time, resources, scheduling. etc.
Pure risks
Only a negative outcome
Qualitative risk analysis
“qualifies” the risks that have been identified in the project.
Examines and prioritizes based on probabilityximpact if occurs (no numbers)
Quantitative risk analysis
Numerically assess the probability and impact of the identified risks. Also creates an overall risk score for the project.
Method is more in depth than qualitative risk analysis and relies on several tools
RAG rating
Red amber green
Residual risks
Risks that are expected to remain after a risk response.
Risk
An uncertain event or condition that can have a positive or negative impact on the project
Risk identification
Systematic process of combing through the project, the project plan, the work breakdown structure, and all supporting documentation to identify as many risks that may affect the project as possible.
Risk management plan
PM subsidiary plan that defines how risks will be identified, analyzed, responded to, and monitored within project.
Also defined iterative risk management process that the project is expected to adhere to
Risk management planning
Agreed-upon approach to the management of the project risk processes
Risk owners
Individual/entity that are responsible for monitoring and responding to an identified risk wihtin the project
Risk register
The risk register is a project plan component that contains all of the information related to the risk management activities. It’s updated as risk management activities are conducted to reflect the status, progrss, and nature of the project risks.
Risk report
Explains the overall project risks and provides summaries about the individual project risks
Risk response audit
An audit to test the validity of the established risk responses
Risk responsiblities
The level of ownership an individual or entity has over a project risk
Risk score
The calculated score based on each risk’s probabvility and impact. The approach can be used in both qualitative and quantitative risk analysis
Root cuase identification
Root cause identification aims to find out why a risk event may be occurring, the causal factors for the risk events, and then, eventually, how the events can be mitigated or eliminated.
Secondary risks
New risks that are created as a result of a risk response
Sensitivity analysis
A quantitative risk analysis tool that examines each risk to determine which one has the largest impact on the project’s success
Sharing
A risk response that shares the advantages of a positive risk wihtin a project
SWOT analysis
Examining the project from the perspective of each characterstic: strengths, weaknesses, opportunities, and threats
TECOP
A prompt list used in risk identification to examine the Technical, Environmental, Commercial, Operational, and political factors of the project
Technical, quality, or performance Risks
Technical risks are associated with new, unproven, or complex technologies being used on the project.
Changes to the technology during the project implementation can also be a risk. Quality risks are the levels set for expectations of impractical quality and performnace
Transference
Risk reponse that transfers ownership to another party.
Insurance, licenced contractors, etc are good examples.
Fee/contract is typically involved with the reansference of a risk
Variability risks
Example of a non-event risks.
Uncertainty exists about some key characteristics of a planned event, activity, or decision.
e.g. productivity could be higher or lower than expected, weather event during construction?
VUCA
A prompt list used in risk identification that examines the: Volatility Uncertainty Complexity Ambiguity ..of risk factors wihtin the project
