Ch10 Flashcards
___________ is the art and science of
identifying, assigning, and responding to risk
throughout the life of a project and in the best interests
of meeting project objectives
Project risk management
T/F: Risk management is often overlooked on projects, but it
can help improve project success by helping select
good projects, determining project scope, and
developing realistic estimates
T
Fact: Study by Ibbs and Kwak show how risk management is
neglected, especially on IT projects
A dictionary definition of ______ is “the possibility
of loss or injury”
risk
________ ____ involves understanding potential
problems that might occur on the project and
how they might impede (delay or stop) project
success
Project risk
Fact: Risk management is like a form of insurance; it
is an investment
T/F: The goal of project risk management is to minimize potential risks
while maximizing potential opportunities.
T
Project Risk Management processes include
Risk management planning
Risk identification
Qualitative risk analysis
Quantitative risk analysis
Risk response planning
Risk monitoring and control
__________________ deciding how to approach and plan the risk management activities for the project
Risk management planning:
_______________: determining which risks are likely to affect a project and documenting their characteristics
Risk identification
______________: characterizing and analyzing risks and prioritizing their effects on project objectives
Qualitative risk analysis
____________: measuring the probability and consequences of risks
Quantitative risk analysis
______________: taking steps to enhance opportunities and reduce threats to meeting project objectives
Risk response planning
____________________: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction
Risk monitoring and control
The main output of risk management planning is a
risk management plan
Fact:
• The project team should review project
documents and understand the organization’s
and the sponsor’s approach to risk
• The level of detail will vary with the needs of
the project
__________ are predefined actions that the
project team will take if an identified risk event
occurs
Contingency plans
____________are developed for risks that have a
high impact on meeting project objectives
Fallback plans
____________________ are provisions
held by the project sponsor that can be used to
mitigate cost or schedule risk if changes in scope or
quality occur
Contingency reserve or allowances
Categories of Risk
Market risk
Financial risk
Technology risk
_________-: Will the new product be useful
to the organization or marketable to others?
Will users accept and use the product or
service?
Market risk
_______________Can the organization afford to
undertake the project? Is this project the best
way to use the company’s financial resources?
Financial risk:
______________: Is the project technically
feasible? Could the technology be obsolete
before a useful product can be produced?
Technology risk
_____________ is the process of understanding what
potential unsatisfactory outcomes are associated with a
particular project
Risk identification
Several risk identification tools and techniques include
Brainstorming
The Delphi technique
Interviewing
SWOT analysis(Strengths/Weaknesses Opportunities/Threats)
Assess the likelihood and impact of
identified risks to determine their magnitude
and priority
Quantitative Risk Analysis
Risk quantification tools and techniques
include
Probability/Impact matrixes
The Top 10 Risk Item Tracking technique
Expert judgment
_________________ is a tool for
maintaining an awareness of risk throughout
the life of a project
Top 10 Risk Item Tracking
Fact:
• Establish a periodic review of the top 10
project risk items
• List the current ranking, previous ranking,
number of times the risk appears on the list
over a period of time, and a summary of
progress made in resolving the risk item
Many organizations rely on the feelings and past
experience of experts to help identify potential
project risks
Expert Judgment
T/F: Experts can categorize risks as high, medium, or
low with or without more sophisticated
techniques
T
Fact: Quantitative Risk Analysis Often follows qualitative risk analysis, but both can be done together or separately
T/F:Large, complex project involving leading edge
technologies often require extensive qualitative risk analysis
F: extensive quantitative risk analysis
Quantitative Risk Analysis Main techniques include
– Decision tree analysis
–simulation
A __________ is a diagramming method used to
help you select the best course of action in
situations in which future outcomes are
uncertain
decision tree
_______ is a type of decision tree where you
calculate the expected monetary value of a
decision based on its risk event probability and
monetary value
EMV
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___________ uses a representation or model of a system
to analyze the expected behavior or performance of the
system
Simulation
___________ analysis simulates a model’s outcome
many time to provide a statistical distribution of the
calculated results
Monte Carlo
Fact: To use a Monte Carlo simulation, you must have three
estimates (most likely, pessimistic, and optimistic) plus
an estimate of the likelihood of the estimate being
between the optimistic and most likely values
T/F: before identifying and quantifying risk, you must decide
how to respond to them
F: After
Risk Response Planning Four main strategies:
Risk avoidance
Risk acceptance
Risk transference
Risk mitigation
______________: eliminating a specific threat or risk, usually by eliminating its causes
Risk avoidance
______________: accepting the consequences should a risk occur
Risk acceptance
___________: shifting the consequence of a risk and responsibility for its management to a third party
Risk transference
______________: reducing the impact of a risk event by reducing the probability of its occurrence
Risk mitigation
T/F: Monitoring risks involves knowing their status
T
____________ involves carrying out the risk
management plans as risks occur
Controlling risks
______________ are unplanned responses to risk
events that must be done when there are no
contingency plans
Workarounds (حلول بديلة)
The main outputs of risk monitoring and control
are
corrective action, project change requests,
and updates to other plans
_________________ involves executing the
risk management processes and the risk
management plan to respond to risk events
Risk response control
Fact:
• Risks must be monitored based on defined
milestones and decisions made regarding risks
and mitigation strategies
• Sometimes workarounds or unplanned
responses to risk events are needed when there
are no contingency plans
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