11. Risk Flashcards
What is the process of risk managment?
- Plan risk managment
- Idnetify risks kgh
- Perform qualitative risk anaysis
- Perform qantitative risk analysis
- Plan risk responses
- Control risks
What is the key output of the plan risk mgt process?
Risk mgt plan
What is the key output of the indentify risk process?
Risk register
What key output of the perform qualitative risk analysis process are added to the risk register?
- Risk ranking for the project
- Prioritized risks and their probability and impact rating
- Risks grouped by category
- List of risks requiring additional analysis and response
- list of risks requiring analysis the near term
- Watch list of noncritical risks
What key output of the perform quantitative risk analysis process are added to the risk register?
- prioritized list of quantified risks
- initial amount of contingency time and cost reserves needed
- possible realistic and achievable completion date and project cost
- Quantified probability of meeting project objectives
- Trend in quantitative risk analysis
What key outputs of the plan risk responses process are added to the risk register?
- Residual risks
- contingency plan
- fallback plans
- risk owners
- security risks
- risk triggers
- contacts
- reserve for time and cost
What are the key output of the control risks process?
- Work performance information
- risk register update
- change requests
- update to the project mgt plan and project documents
- update to organizational process assets
What key outputs of the control risks process are dded to the risk register?
- outcomes of risk assessments and risk audits
- results of implemented risk responses
- updates to previous part of the risk mgt
- closing of irks that are no longer applicable
- details of what happened wien risks occurred
lessons learned
What is a risk?
a future occurrence that may or many not happen that can have a positive or negative impact on the project
What are the four key factors that need to be determined for each risk
- probability
- impact
- timing
- frequency
A person who is risk averse is:
unwilling to take risks
Define risk appetite, risk tolerance, and risk threshold
Risk appetite; a general, high-level description of the acceptable level of risks
- risk tolerance: a measurable amount of acceptable risks
- Risk threshold: the specific point at which risk become unacceptable
What are the inputs of the risk mgt process?
- project background info and other organizational process assets
- enterprise environmental factors
- project charter, network diagram, and other project documents
- project mgt plan (including scope baseline and knowledge area plans)
- Time and cost estimates
- procurements documents
- stakeholder register
- risk register
- work performance data and reposts
What are some examples of risks?
- technical
- project mgt
- schedule
- cost
- quality
- scope
- resources
- customer satisfaction
what are some examples of risk identifications techniques?
- documentation reviews
- information gathering techniques
- SWOT analysis
- Checklist analysis
- Assumptions analysis
- Diagramming techniques
What are risk triggers
Early warning signs that a risk event has occurred or is about to occur
that lst risk owners know when take action
What is assumptions analysis?
When is it done?
Assessing the assumptions made on the project and determining whether they are valid
During identify risks
What is risk data quality assessment?
When is it done?
Determining how accurate, reliable, and well understood the risk information is
During perform qualitative risk analysis
What is a probability and impact matrix?
The company’s standard rating system to promote a common understanding of what each risk rating means
What is sensitivity analysis?
A technique to analyze and compare the potential impact of identified risks.
What is the formula for expect monetary value?
probability times impact
EMV = P * I
What is a decision tree?
A model of a decision to be made that include the probabilities and impacts of future events
Who is the risk owners
?
The persons assigned to develop and execute risk responses for a critical risks
What are the possible risk response strategies for threats
- Avoid: eliminate the threat by eliminating the cause
- Mitigate: reduce the probability or impact of the threat
- Transfer: Make another party responsible for the risk (outsourcing, insurance, bonds, guarantees)
- Accept:
- passive acceptance: do nothing; if it happens, it happens
- active acceptance: develop contingency plan in advance
What are the possible risk response strategies for opportunities?
- Exploit: make sure the opportunity occurs
- Enhance: increase probability positive impact of the risk event
- Share: allocate full or partial ownership of the opportunity to a third party
- Accept: do nothing; if it happens, it happens
What is residual risks?
Risks that remain after risk response planning
What are secondary risks
new risks created by the implementation of risk response strategies
How does buying insurance related to risk planning?
It exchange an unknown cost impact of known risk for a known cost impact
it’s a method to decrease a project risk
How does a contact related to risk response planning?
A contract helps allcate and mitigatge risk
risk analysis must be done before contact is singed
What are contingency plan?
panned responses to be implemented when and if a risk event occurs
What are a fallback plans?
action that will be taken if the contingency plan is not effective
What are reserves?
What are the two kinds of reserves?
Time or cost added to the project to account for risk
management reserve
contingency reserve
What is a contingency reserve
Time or cost allocated to cover unknowns
it is included in the cost baseline
What is mgt reserve?
time or cost allocated to cover unknown unknowns
it is added to the cost baseline to get the cost budget
What are workarounds
unplanned responses developed to deal with occurrence of unanticipated events or problems on a project (or to deal with risks that had been accepted because of unlikelihood of occurrence and/or minimal impact)
What are risk assessments?
When do they occur?
Reviews of the risk management plan and risk register
During control risks
What is reserve analysis?
When is it done during the risk mgt process?
Managing the reserves and making sure the amount remaining is adequate
During control risks
What are risk audits?
Assessing the effectiveness of the risk mgt process and specific risk responses that have been implemented
