Chap 11. Project Risk Management Flashcards
Name all the process in Project Risk Management.
- Plan project risk management
- Identify Risks
- Quantitative risk analysis
- Quantitative risk analysis
- Plan risk responses
- Execute/Implement risk responses
- Monitor risk responses
Can Risk be positive or negative?
Yes, can be both. Risk is an uncertain event
What is the difference between business risk and pure risks?
Business risk is an investment risk can be positive or negative; while pure risks is only negative, meaning loss of life, etc.
What does the utility function describe?
A persons willingness to tolerate risk.
What are some non-event based risks?
Variability risks and ambiguity risks
Variability risks is uncertainty surrounding a project.
Ambiguity risk means uncertain future.
What is identify risk categories?
Different risks breakdown structure. For example, technical risks, external risks, project management risks.
What is a risk register?
It is a project document that contains all info related to risks (status, progress, responses, outcomes)
Are assumptions tested?
Yes
What is the goal of qualitative risk analysis?
Quickly determine if the risk has high probability so that it needs a quantitative analysis.
What is a probability impact matrix in qualitative analysis?
It is a type of matrix that says the likelihood of risk and impact. (a subjective score)
What are some risk parameters?
- Urgency of the risk: How long before the risk may happen in the project?
- Proximity: How long before the risk will affect a project objective?
- Dormancy: How long after the risk has occurred before its impact is noticed?
- Manageability: How easily can the risk be managed?
- Controllability: How easily can the outcome of the risk even be controlled?
- Detectability: how easily can the evidence of a risks’ occurrence be detected?
- Connectivity: How connected is a risk to other risks within the project?
- Strategic impact: What size of impact will the risk have on the strategic goals?
- Propinquity: What is the risk perception by key stakeholders?
The difference between individual project risk and overall project risk?
Individual project risk - a single affecting project objective.
Overall project risk - uncertainty on the object as a whole, involving stakeholders, etc.
What are some risk response for a negative risk?
- Escalate
- Avoidance
- Transfer
- Mitigation - Try to reduce probability
- Acceptance
What is a sensitivity analysis?
An analysis used in quantitative risk analysis. (tornado diagram) It shows the project risk on its own merit.
What are some risk response for a positive risk?
- Escalate.
- Exploit - to take advantage of
- Share
- Enhance - to ensure it happens
- Acceptance
