7. Project Risk Flashcards
The project manager has just met with her team to
brainstorm some of the problems that could occur on
the upcoming project. Today’s session was intended
to generate possible issues that could arise and get
everyone to start thinking in terms of what they should
be looking for once the project kicks off. This meeting
would be an example of what element in the risk management
process?
a. Risk mitigation
b. Control and documentation
c. Risk identification
d. Analysis of probability and consequences
c —Brainstorming meetings are usually created
as an effective means to get project team members to
begin identifying potential risks
Todd is working on resource scheduling in preparation
for the start of a project. There is a potential problem
in the works, however, as the new collective bargaining
agreement with the company’s union has not been
concluded. Todd decides to continue working on the
resource schedule in anticipation of a satisfactory settlement.
Todd’s approach would be an example of which
method for dealing with risk?
a. Accept it
b. Minimize it
c. Transfer it
d. Share it
a—Todd is choosing to
accept the risk of potential future problems by continuing
to work on his resource schedule in anticipation of positive contract talks
A small manufacturer has won a major contract with
the U.S. Army to develop a new generation of satellite
phone for battlefield applications. Because of the significant
technological challenges involved in this project
and the company’s own size limitations and lack
of experience in dealing with the Army on these kinds
of contracts, the company has decided to partner with
another firm in order to collaborate on developing the
technology. This decision would be an example of what
kind of response to the risk?
a. Accept it
b. Minimize it
c. Transfer it
d. Share it
d—The firm has decided to share the risk
of the new project by partnering with another company
All of the following would be considered examples of
significant project risks except:
a. Financial risks
b. Technical risks
c. Commercial risks
d. Legal risks
e. All are examples of significant potential project risks
e—All are examples of significant potential project risks
Suppose your organization used a qualitative risk
assessment matrix with three levels each of probability
and consequences (high, medium, and low).
In evaluating a project’s risks, you determine that commercial risks pose a low probability of occurrence but
high consequences. On the other hand, legal risks are
evaluated as having a high probability of occurrence
and medium consequences. If you are interested in prioritizing your risks, which of these should be considered
first?
a. Commercial risk
b. Legal risk
c. Both should be considered equally significant
d. Neither is really much of a threat to this project, so
it doesn’t matter what order you assign them
b—Legal risks would be of higher overall significance
(high probability, medium consequence) and so should
probably be considered first in a prioritization scheme.
What are the four key stages in project risk management?
- Risk Identification
- Analysis of probability and consequences
- Risk mitigation strategies
- Control and documentation
What is Risk management?
the art and science of identifying, analyzing, and responding to risk factors throughout the life of a project and in the best interest of its objectives.
How many risk clusters are there?
Five
List the risk clusters?
Financial Technical Commercial Execution Contractual or legal risk
List some common types of risks?
Absenteeism Resignation Staff pulled away Time overruns Skills unavailable Ineffective training Specs incomplete Change orders
What are the methods to identify the risks?
Brainstorming meetings
Expert opinion
Past history
Multiple (or team based) assessments
What does RBS stand for?
Risk Breakdown Structure
What is a Risk Breakdown Structure?
a source-oriented grouping of project risks that organizes and defines the total risk exposure of the project.
In the Risk Impact matrix what are the x and y axes?
consequences
likelihood
