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capm > 11 Project Risk Management > Flashcards

11 Project Risk Management Flashcards

1
Q

A risk response appropriate for both positive and
negative risks, but often used for smaller risks
within a project.

A

Acceptance

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2
Q

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

A

Ambiguity risks

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3
Q

A risk response to avoid the risk.

A

Avoidance

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4
Q

The most common approach to risk
identification; usually completed by a project
team with subject matter experts to identify the
risks within the project.

A

Brainstorming

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5
Q

These risks may have negative or positive
outcomes. Examples include using a less
experienced worker to complete a task, allowing
phases or activities to overlap, or forgoing the
expense of formal training for on-the-job
education.

A

Business risks

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6
Q

A ranking approach to identify the probability
and impact by using a numerical value, from .01
(very low) to 1.0 (certain).

A

Cardinal scales

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7
Q

A quick and cost-effective risk identification

approach.

A

Checklists

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8
Q

The consideration of the risk ranking scores that
takes into account any bias, the accuracy of the
data submitted, and the reliability of the nature
of the data submitted.

A

Data precision

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9
Q

A method to determine which of two or more
decisions is the best one. The model examines
the costs and benefits of each decision’s outcome
and weighs the probability of success for each of
the decisions.

A

Decision tree

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10
Q

An anonymous method of querying experts about
foreseeable risks within a project, phase, or
component of a project. The results of the survey
are analyzed by a third party, organized, and then
circulated to the experts. There can be several
rounds of anonymous discussion with it, without fear of backlash or offending
other participants in the process. The goal is to
gain consensus on project risks within the
project.

A

Delphi Technique

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11
Q

A risk response that attempts to enhance the
conditions to ensure that a positive risk event will
likely happen.

A

Enhancing

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12
Q

A risk response that is appropriate for both
positive and negative risk events that may
outside of the project manager’s authority to act
upon.

A

Escalating

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13
Q

The monetary value of a risk exposure based on
the risk’s probability and impact in the risk
matrix. This approach is typically used in
quantitative risk analysis because it quantifies the
risk exposure.

A

Expected monetary value (EMV)

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14
Q

A risk response that takes advantage of the

positive risks within a project.

A

Exploit

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15
Q

These risks are outside of the project, but directly
affect it—for example, legal issues, labor issues, a
shift in project priorities, or weather. “Force
majeure” risks call for disaster recovery rather
than project management. These are risks caused
by earthquakes, tornadoes, floods, civil unrest,
and other disasters.

A

External risks

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16
Q

System or process flowcharts show the
relationship between components and how the
overall process works. These are useful for
identifying risks between system components.

A

Flowcharts

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17
Q

Charts out a decision
problem. It identifies all of the elements,
variables, decisions, and objectives and also how
each factor may influence another.

A

Influence diagrams

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18
Q

These cause-and-effect diagrams are also called
fishbone diagrams and are used to find the root
cause of factors that are causing risks within the
project.

A

Ishikawa diagrams

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19
Q

Low-priority risks are identified and assigned to a

watch list for periodic monitoring.

A

Low-priority risk watch list

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20
Q

A risk response effort to reduce the probability

and/or impact of an identified risk in the project.

A

Mitigation

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21
Q

A simulation technique that got its name from
the casinos of Monte Carlo, Monaco. The
simulation is completed using a computer
software program that can simulate a project,
using values for all possible variables, to predict
the most likely model.

A

Monte Carlo technique

22
Q

A ranking approach that identifies and ranks the
risks from very high to very unlikely or to some
other value.

A

Ordinal scales

23
Q

The performing organization can contribute to
the project’s risks through unreasonable cost,
time, and scope expectations; poor project
prioritization; inadequate funding or the
disruption of funding; and competition with other
projects for internal resources.

A

Organizational risks

24
Q

A prompt list used for risk identification. It
examines risks in the Political, Economic, Social,
Technological, Legal, and Environmental
domains.

A

PESTLE

25
Q

A matrix that ranks the probability of a risk event
occurring and its impact on the project if the
event does happen; used in qualitative and
quantitative risk analyses.

A

Probability and impact matrix

26
Q

These risks deal with faults in the management of
the project: the unsuccessful allocation of time,
resources, and scheduling; unacceptable work
results; and poor project management.

A

Project management risks

27
Q

These risks have only a negative outcome.
Examples include loss of life or limb, fire, theft,
natural disasters, and the like.

A

Pure risks

28
Q

This approach “qualifies” the risks that have been
identified in the project. Specifically, qualitative
risk analysis examines and prioritizes risks based
on their probability of occurring and their impact
on the project should they occur.

A

Qualitative risk analysis

29
Q

This approach attempts to numerically assess the
probability and impact of the identified risks. It
also creates an overall risk score for the project.
This method is more in-depth than qualitative
risk analysis and relies on several different tools
to accomplish its goal.

A

Quantitative risk analysis

30
Q

An ordinal scale that uses red, amber, and green
to capture the probability, impact, and risk
score.

A

RAG rating

31
Q

Risks that are expected to remain after a risk

response.

A

Residual risks

32
Q

Uncertain event or condition
that can have a positive or negative impact on
the project.

A

Risk

33
Q

The 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.

A

Risk identification

34
Q

A project management subsidiary plan that
defines how risks will be identified, analyzed,
responded to, and monitored within the project.
The plan also defines the iterative risk
management process that the project is expected
to adhere to.

A

Risk management plan

35
Q

The agreed-upon approach to the management

of the project risk processes.

A

Risk management planning

36
Q

The individuals or entities that are responsible for
monitoring and responding to an identified risk
within the project.

A

Risk owners

37
Q

It’s 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, progress, and nature of the project
risks.

A

Risk register

38
Q

It explains the overall project risks
and provides summaries about the individual
project risks.

A

Risk report

39
Q

An audit to test the validity of the established risk

responses.

A

Risk response audit

40
Q

The level of ownership an individual or entity has

over a project risk.

A

Risk responsibilities

41
Q

The calculated score based on each risk’s
probability and impact. The approach can be
used in both qualitative and quantitative risk
analysis.

A

Risk score

42
Q

It 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.

A

Root cause identification

43
Q

New risks that are created as a result of a risk

response.

A

Secondary risks

44
Q

A quantitative risk analysis tool that examines
each risk to determine which one has the largest
impact on the project’s success.

A

Sensitivity analysis

45
Q

A risk response that shares the advantages of a

positive risk within a project.

A

Sharing

46
Q

It’s the process of examining the
project from the perspective of each
characteristic: strengths, weaknesses,
opportunities, and threats.

A

SWOT analysis

47
Q

A prompt list used in risk identification to
examine the Technical, Environmental,
Commercial, Operational, and Political factors of
the project.

A

TECOP

48
Q

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 performance.

A

Technical, quality, or performance risks

49
Q

A risk response that transfers the ownership of
the risk to another party. Insurance, licensed
contractors, or other project teams are good
examples of transference. A fee and contractual
relationships are typically involved with the
transference of a risk.

A

Transference

50
Q

A type of risk based on the variations that may
occur in the project, such as production, number
of quality errors, or even the weather.

A

Variability risks

51
Q

A prompt list used in risk identification that
examines the Volatility, Uncertainty, Complexity,
and Ambiguity of risk factors within the project.

A

VUCA

capm (13 decks)

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