All-In-One Chapter 11 - Managing Project Risks

Question 1

Acceptance

Answer 1

a risk response appropriate for both positive and negative risks, but often used for smaller risks within a project

Question 2

Avoidance

Answer 2

a risk response to avoid the risk

Question 3

Brainstorming

Answer 3

the most common approach to risk identification; usually completed by a project team with subject matter experts to identify the risks within the project

Question 4

Business Risks

Answer 4

these risks may have negative or positive outcomes.

Question 5

Cardinal scales

Answer 5

A ranking approach to identify the probability and impact by using a numerical value, from .01 (very low) to 1.0 (certain)

Question 6

Checklists

Answer 6

a quick and cost-effective risk identification approach

Question 7

Data precision

Answer 7

the consideration of the risk ranking scores that takes into account any bias, the accuracy of the data submitted, and the reliability of the nature of the data submitted

Question 8

Decision tree

Answer 8

a method to determine which of two or more decisions is the best one. The model examines the costs and benefits of each decision’s outcome and weighs the probability of success for each of the decisions

Question 9

Delphi Technique

Answer 9

an anonymous method of querying experts about forseeable risks within a project, phase, or component of a project. The results of the survey are analyzed by a third party, organized, and then circulated to the experts. The goal is to gain consensus on project risks within the project

Question 10

Enhancing

Answer 10

a risk response that attempts to enhance the conditions to ensure that a positive risk event will likely happen

Question 11

Expected Monetary Value (EMV)

Answer 11

the monetary value of a risk exposure based on the risk’s probability and impact in the risk matrix. This approach is typically used in quantitative risk analysis because it quantifies the risk exposure.

Question 12

Exploit

Answer 12

a risk response that takes advantage of the positive risks within a project

Question 13

External risks

Answer 13

these risks are outside of the project, but directly affect it

Question 14

Flowcharts

Answer 14

system or process flowcharts show the relationship between components and how the overall process works. These are useful for identifying risks between system components

Question 15

Influence diagrams

Answer 15

an influence diagram charts out a decision problem. It identifies all of the elements, variables, decisions, and objectives and also how each factor may influence another

Question 16

Ishikawa diagrams

Answer 16

these cause-and-effect diagrams are also called fishbone diagrams and are used to find the root cause of factors that are causing risks within the project

Question 17

Low-priority risk watch list

Answer 17

low-priority risks are identified and assigned to a watch list for periodic monitoring

Question 18

Mitigation

Answer 18

a risk response effort to reduce the probability and/or impact of an identified risk in the project

Question 19

Monte Carlo technique

Answer 19

a simulation technique that got its name from the casinos of Monte Carlo, Monaco. The simulation is completed using a computer software program that can simulate a project, using values for all possible variables, to predict the most likely model

Question 20

Ordinal scales

Answer 20

a ranking approach that identifies and ranks the risks from very high to very unlikely or to some other value

Question 21

Organizational risks

Answer 21

the performing organization can contribute to the project’s risks through unreasonable cost, time, and scope expectations; poor project prioritization; inadequate funding or the disruption of funding; and competition with other projects for internal resources

Question 22

Probability and impact matrix

Answer 22

a matrix that ranks the probability of a risk event occurring and its impact on the project if the event does happen; used in qualitative and quantitative risk analysis

Question 23

Project management risks

Answer 23

these risks deal with faults in the management of the project: the unsuccessful allocation of time, resources, and scheduling; unacceptable work results; and poor project management

Question 24

Pure risks

Answer 24

these risks have only a negative outcome.

Question 25

Qualitative risk analysis

Answer 25

the approach “qualifies” the risks that have been identified in the project. Specifically, qualitative risk analysis examines and prioritizes risks based on their probability of occurring and their impact on the project should they occur

Question 26

Quantitative risk analysis

Answer 26

this approach attempts to numerically assess the probability and impact of the identified risks. It also creates an overall risk score for the project. This method is more in-depth than qualitative risk analysis and relies on several different tools to accomplish its goal

Question 27

RAG racing

Answer 27

an ordinal scale that uses red, amber and green (RAG) to capture the probability, impact, and risk score

Question 28

Residual risks

Answer 28

risks that are expected to remain after a risk response

Question 29

Risk

Answer 29

a project risk is an uncertain event or condition that can have a positive or negative impact on the project

Question 30

Risk identification

Answer 30

the systematic process of combining through the project, the project plan, the work breakdown structure, and all supporting documentation to identify as many risks that may affect the project as possible

Question 31

Risk management plan

Answer 31

a project management subsidiary plan that defines how risks will be identified, analyzed, responded to, and monitored within the project. The plan also defines the iterative risk management process that the project is expected to adhere to

Question 32

Risk management planning

Answer 32

the agreed-upon approach to the management of the project risk processes

Question 33

Risk owners

Answer 33

the individuals or entities that are responsible for monitoring and responding to an identified risk within the project

Question 34

Risk register

Answer 34

the risk register is a project plan component that contains all of the information related to the risk management activities. It’s updated as risk management activities are conducted to reflect the status, progress, and nature of the project risks.

Question 35

Risk response audit

Answer 35

an audit to test the validity of the established risk responses

Question 36

Risk responsibilities

Answer 36

the level of ownership an individual or entity has over a project risk

Question 37

Risk score

Answer 37

the calculated score based on each risk’s probability and impact. The approach can be used in both qualitative and quantitative risk analysis

Question 38

Root cause identification

Answer 38

root cause identification aims to find out why a risk event may be occurring, the causal factors for the risk events, and then, eventually, how the events can be migrated or eliminated

Question 39

Secondary risks

Answer 39

new risks that are created as a result of a risk response

Question 40

Sensitivity analysis

Answer 40

a quantitative risk analysis tool that examines each risk to determine which one has the largest impact on the project’s success

Question 41

Sharing

Answer 41

a risk response that shares the advantages of a positive risk within a project

Question 42

SWOT analysis

Answer 42

SWOT analysis is the process of examining the project from the perspective of each characteristic: strengths, weaknesses, opportunities, and threats

Question 43

Technical, quality or performance risks

Answer 43

technical risks are associated with new, unproven, or complex technologies being used on the project. Changes to the technology during the project implementation can also be a risk. Quality risks are the levels set for expectations of impractical quality and performance

Question 44

Transference

Answer 44

a risk response that transfers the ownership of the risk to another party. A fee and contractual relationships are typically involved with the transference of a risk