APM - Understand project risk and issue management in the context of a project

Question 1

Define the term ‘risk’

Answer 1

A Risk is the potential of a situation or event to impact on the achievement of specific objectives

Question 2

Explain the purpose of risk management

Answer 2

Risk analysis and management is a process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities.

Question 3

Describe the use of risk registers

Answer 3

A Risk register is a document listing identified risk events and their corresponding planned responses. Used interchangeably with risk log or risk repository

Question 4

Define the term ‘issue’

Answer 4

An Issue is a problem that is now breaching, or is about to breach, delegated tolerances for work on a project or programme. Issues require support from the sponsor to agree a resolution

Question 5

Outline the purpose of ‘issue management’

Answer 5

Issue management is the process by which issues can be identified and addressed to remove the threats that they pose.

Question 6

State the stages of an issue resolution process

Answer 6

Issue stage process
• Identify
• Log
• Analyse impact on success criteria – scope, time, cost and benefits
• Prioritise
• Escalate to sponsor who may escalate to the governance board
• Actions are assigned to person or group best placed to resolve in timely manner
• Issues that result in change to scope or any other of the baseline plan are progressed through change control

Question 7

Outline the stages of a typical risk management process (including identification, analysis, response and closure)

Answer 7

Risk process
The risk management plan feeds into the risk response plans which in turn forms part of the over management plan
• Initiate - Risk management plan
• Identification - Risk register
• Analysis - Risk report
• Response - Risk response plans – Overall project management plan
• Closure - Lessons learned