9. Project Risk Management Flashcards
Project risk
An uncertainty that, if it occurs, would affect one or more project objectives
Uncertainty
(Probability) gap between the information required to estimate an outcome and the information already possessed
Effect
(Impact) could be negative or positive
Negative
Threat
Positive
Opportunity
Risk equation
Probability of occurrence X amount of impact
When risk event occurs
Threats called issues
Opportunities called benefits
Individual risk
Effect on one or more of project objectives
Overall project risk
Effect on a project as a whole
Risk tolerance
Degree of risk
Risk management
Understanding and managing risk on a project
Increase the probability and impact of positive events
Decrease probability and impact of negative events
Increase the value of project management
3 risk categories
Known risk
Known unknowns
Unknown unknowns
Known risks
Variations in productivity and material costs
Known unknowns
Predictable or foreseeable
Unknown unknowns
Not foreseeable
