9A - Create a Risk Management Plan

Question 1

An uncertain event that has either a positive or negative effect on the project. Its primary components are a measure of probability that a ___ will occur and the impact of the ___ on a project.

Answer 1

risk

Question 2

Risks that have a negative impact on the project.

Answer 2

negative risks (threats)

Question 3

Risks that when taken, produce a positive project outcome.

Answer 3

positive risks (opportunities)

Question 4

A way of analyzing the major risks that are inherent to a project that could have an impact on its success. These major risks include time, cost, quality, and scope.

Answer 4

effect-based risk classification

Question 5

A method of analyzing risk in terms of it origins.

Answer 5

source-based risk classification

Question 6

The inherent risk in any business endeavor that carries the potential for either profit or loss. Types of ___s are competitive, legislative, monetary, and operational.

Answer 6

business risk

Question 7

A risk that has only the potential for loss and no potential for profit or gain. An ___ is one for which insurance may be purchased to reduce or offset the possible loss. Types of ___s are direct property, indirect property, liability, and personnel-related.

Answer 7

insurable risk

Question 8

A graph showing the assignment of value to the likelihood of a risk occurring.

Answer 8

probability scale

Question 9

The sum of the events divided by the number of occurrences.

Answer 9

mean

Question 10

The number that separates the higher half of a probability distribution from the lower half. It is not the same as the average, although the two terms are often confused.

Answer 10

median

Question 11

This is the measure of the spread of the data, or the statistical dispersion of the values in your data set.

Answer 11

standard deviation

Question 12

The scattering of values assigned to a likelihood in a sample population.

Answer 12

probability distribution

Question 13

A visual depiction of probability distribution in which the vertical axis refers to the probability of the risk event and the horizontal axis refers to the impact that the risk event will have on the project objectives.

Answer 13

PDF

Question 14

What does PDF stand for?

Answer 14

Probability Density Function

Question 15

Probability based on people’s opinions, which may be shaped by information, experience, and attitude.

Answer 15

subjective probability

Question 16

Probability that is deduced mathematically.

Answer 16

objective probability

Question 17

A visual depiction of a PDF in which the data is distributed symmetrically in the shape of a bell with a single peak.

Answer 17

normal distribution PDF

Question 18

A visual depiction of a PDF in which the data is skewed to one side, indicating that an activity or element presents relatively little risk to project objectives.

Answer 18

triangular distribution PDF

Question 19

The assignment of a value that reflects the magnitude of the impact of a risk event on project objectives.

Answer 19

impact scale

Question 20

A way of analyzing the risks of a project based on how much is known about them.

Answer 20

levels of uncertainty

Question 21

A risk ranking technique that categorizes risks to identify the areas of the project most exposed to the effects of uncertainty.

Answer 21

risk categorization

Question 22

A hierarchical arrangement of identified risks that helps project managers organize potential sources of risk to the project.

Answer 22

RBS

Question 23

What does RBS stand for?

Answer 23

Risk Breakdown Structure

Question 24

The evaluation of the probability and impact of the occurrence of a risk.

Answer 24

risk analysis

Question 25

The level of risk a project manager or key stakeholder is willing to take when the investment is compared to the potential payoff.

Answer 25

risk tolerance