7.0 Risk

Question 1

PRINCE2 Risk is based on which framework?

Answer 1

The OGC Management of Risk Framework

Question 2

What are the 2 types of risk?

Answer 2

1. Threats

2. Opportunities

Question 3

What are the 6 responses to risk?

Answer 3

1. EXPLOIT an opportunity (taking actions to make it more likely to happen) or AVOID a threat
2. ENHANCE an opportunity or REDUCE (mitigate) a threat
3. SHARE the risk (opportunity or threat)
4. TRANSFER the risk (e.g. insurance)
5. ACCEPT the risk (tolerate the consequences)
6. CONTINGENCY (having a plan to react to any of the above developing)

Question 4

PRINCE2 Management Procedures

Answer 4

• Identify risk
• Analyse risk
• Plan for the risk
• Implement the actions

Question 5

What is a risk?

Answer 5

An uncertain event or set of events that, should it occur, will have a negative or positive effect on the achievement of project objectives (time, cost, quality, scope, benefits and overall risk) and therefore the Business Case.

Question 6

What is a threat?

Answer 6

Uncertain events that would have a negative impact on objectives and benefits

Question 7

What is an opporunity?

Answer 7

Uncertain events that would have a positive impact on objectives and benefits

Question 8

What is risk appetite?

Answer 8

An organisation’s unique attitudes towards risk-taking that in turn dictates the amount of risk that it considers acceptable

Question 9

What are risk tolerances?

Answer 9

The threshold levels of risk exposure that, with appropriate approvals, can be exceeded, but which when exceeded will trigger some form of response (e.g. reporting the situation to senior management for action)

Question 10

Who is accountable for ensuring risk management takes place?

Answer 10

Project Manager

Question 11

What is risk management?

Answer 11

A process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities

OR

The systematic application of principles, approaches and processes to the tasks of identifying and assessing risks, planning and implementing risk responses and communicating risk management activities with stakeholders

Question 12

What is the purpose of the risk theme?

Answer 12

To identify, assess and control uncertainty and, as a result, improve the ability of the project to succeed

Question 13

Who prepares and assists the Project Manager in maintaining the project’s risk register?

Answer 13

Project Support

Question 14

Who reviews risk management practices to ensure they are performed in line with the project’s risk management approach?

Answer 14

Project Assurance

Question 15

Who creates the risk management approach?

Answer 15

Project Manager

Question 16

Who ensures the risk management approach is appropriate?

Answer 16

Executive

Question 17

Who provides the corporate, programme management or customer risk management policy and risk management process guide (or similar documents)?

Answer 17

Corporate, programme management or the customer

Question 18

Who ensures that risk to the users are identified, assessed and controlled (such as the impact on benefits, operational use and maintenance)?

Answer 18

Senior user(s)

Question 19

Who maintains the risk register?

Answer 19

Project Manager

Question 20

Who participates in the identification, assessment and control of risks?

Answer 20

Team Manager(s)

Question 21

Who ensures that risks associated with the business are identified, assessed and controlled?

Answer 21

Executive

Question 22

Who escalates risks to corporate, programme management or the customer as necessary?

Answer 22

Executive

Question 23

Who ensures that project risks are being identified, assessed and controlled throughout the project lifecycle?

Answer 23

Project Manager

Question 24

What is a risk response?

Answer 24

Actions that may be taken to bring a situation to a level where exposure to risk is acceptable to the organisation

Question 25

What 2 products are produced and maintained for the risk theme?

Answer 25

1. Risk Management Approach

2. Risk Register

Question 26

Risk Management Approach

Answer 26

Described how risk will be managed on the project, including the specific processes, procedures, techniques, standards and responsibilities to be applied

Question 27

Risk Register

Answer 27

Provides a record of identified risks relating to the project, including their status and history. It is used to capture and maintain information on all the identified threats and opportunities relating to the project

Question 28

To be following PRINCE2, what must a project do in relation to risks?

Answer 28

• Define its risk management approach
• Assess whether risks might have an impact
• Define the roles & responsibilities for risk management
• Maintain a risk register
• Ensure risks are dealt with correctly
• Use lessons to inform risk management

Question 29

What must the Risk Management Approach cover?

Answer 29

• how risks are identified and assessed
• how responses are planned and carried out
• how the management of risk is communicated throughout the lifecycle

Question 30

Risk factors to be considered

Answer 30

• novelty (have you ever done it before?)
• pace (how quickly does it need to be done?)
• complexity (how much will the project impact on working practices or the wider infrastructure?)
• scale (how big is it and how much of the organisation capacity will it absorb?)
• costs

Question 31

As part of which management products are risks communiated?

Answer 31

• checkpoint reports
• highlight reports
• end stage reports
• end project report
• exception reports

Question 32

Risk techniques

Answer 32

1. Identify
2. Assess
3. Plan
4. Implement
5. Communicate

Question 33

When should risks be identified?

Answer 33

At any time during the management and delivery of the project

Question 34

Who can raise a risk or issue?

Answer 34

Any member of the team

Question 35

What is the risk cause?

Answer 35

The source of the risk (often referred to as risk drivers)

Question 36

What is the risk event?

Answer 36

The area of uncertainty in terms of the threat or the opportunity

Question 37

What is the risk effect?

Answer 37

The impact(s) that the risk would have on the project objectives should it materialise

Question 38

What are possible techniques for identifying risks?

Answer 38

• lessons learned from others
• risk checklists
• risk prompt lists
• brainstorming
• risk breakdown structures

Question 39

What is the risk proximity?

Answer 39

How quickly the risk is likely to materialise if no action were taken

Question 40

What is the risk owner?

Answer 40

A named individual who is responsible for the management, monitoring and control of all aspects of a particular risk assigned to them, including the implementation of the selected responses to address the threats or to maximise the opportunities

Question 41

What is the risk actionee?

Answer 41

An individual assigned to carry out a risk response action or actions to respond to a particular risk or set of risks. They support and take direction from the risk owner