Chapter 10 - Risk management Flashcards
Identify the four steps in project risk management
- Identify
- Analyze
- Action
- Tracking
Define project risk
Possibility or probability that the project will not turn out as planned or desired
What does project risk have an impact on?
- Scope (what)
- Schedule (when)
- Budget (how much)
Name four steps in the project risk management process
- Identify risks
- Assess risks
- Develop appropriate responses to risks
- Track and control the risks
Describe two internal sources of risks
- Needs and definition: Failure to correctly identify and define current or changing customer needs
- Technical: Failure of the end item
Name four factors that contribute to Technical internal risks
- High complexity
- Low maturity
- Low reliability
- High concurrency
Name some of the external sources of risk in projects
- Market conditions
- Government mandate
- Physical environment
- Labour and other resource availability
- Project priorities
- Customer relationships
- Exchange rates
What is the best way of identifying risks in the project environment?
Identify risks systematically through the process of planning, scoping, scheduling, budgeting
Name and briefly describe three risk identification techniques
- Brainstorming (group discussions)
- Delphi technique: Group survey technique for combining the options of several people to develop a single judgement
- Cause effect analysis: Helps the project team to identify likely causes of risks, and effects they might have
What does RC mathematically? What is this value called?
RC = (Probability) x (Impact)
- Equivalent risk value
Risk is a function of:
- Probability
- Impact
What it the quantitative approach to assessing risk consequence?
RC = Probability x impact
numerical value
What is the qualitative approach to assessing risk consequence?
RC = f(probability, impact)
probability and impact expressed as nominal value
Depending on the size of the risk, what are the different actions that should be taken?
- Low risk –Take no action
- Medium risk –Put contingencies in place
- High risk –Mitigate, or transfer the risk
- Very high risk –Remove the activity or part of the risk
Name two ways of risk tracking and response
- Risk log, register
- Continuously monitor project for trigger symptoms of previously identified risks, and new risks
