Chapter 11 Flashcards
what is project risk management?
- process of conducting risk management planning, identification, analysis, response planning and monitoring and conrol on a project
what are the objectives of Project Risk Management?
- increase probability and impact of positive events, decrease probability and impact of negative events
what are the processes to Project Risk Management?
- 1 plan risk management
- 2 identify risks
- 3 perform qualitative risk analysis
- 4 perform quantitative risk analysis
- 5 plan risk responses
- 6 monitor and control risks
what is risk?
an uncertain event or condition that has an effect on at least one project objective if it occurs
what are objectives?
- can include scope, schedule, cost and quality
what is a cause?
- a requirement, assumption, constraint or condition that creates the possibility of negative or positive outcomes
what are risk conditions?
- aspects of the project/org’s environment that may contribute to project risk
- ex. immature project management practices, lack of integrated management systems, concurrent multiple projects, dependencies on external participants who can’t be controlled
what are known risks?
- those that have been identified and analyzed, making it possible to plan responses to those risks
what are unknown risks
- cannot be managed proactively. should create a contingency plan
what steps does an org need to make to be successful in handling risk?
- committed to address risk management proactively and consistently throughout the project
- conscious choice to actively identify and pursue effective risk management during the life of the project
what is the Plan Risk Management process?
- process of defining how to conduct risk management activities for a project
- should be completed early during project planning
why is the Plan Risk Management process important?
- ensures that the degree, type, and visibility of risk management are commensurate with the risks and the importance of the project to the org
- provides sufficient resources and time for risk management activities and to establish an agreed-upon basis for evaluating risks
what are the inputs to the Plan Risk Management process?
- project scope statement
- cost management plan
- schedule management plan
- communications management plan
- enterprise environmental factors
- organizational process assets
what are the tools and techniques to the Plan Risk Management process?
- planning meetings and analysis
what are the outputs to the Plan Risk Management process
- risk management plan
how is the project scope statement an input to the Plan Risk Management process?
- provides a clear sense of the range of possibilities associated with the project and establishes the framework for how significant risk management may become
how is the cost management plan an input to the the Plan Risk Management process?
- defines how risk budgets, contingencies and management reserves will be reported and accessed
how is the schedule management plan an input to the Plan Risk Management process?
- defines how schedule contingencies will be reported and assessed
how is the communications management plan an input to the Plan Risk Management process?
- defines interactions that will occur on the project and determines who’s available to share info on risks and responses at different times and locations
what enterprise environmental factors can influence the the Plan Risk Management process?
- risk attitudes and tolerances that describe the degree of risk that the org will withstand
what organizational process assets can influence the Plan Risk Management process?
- risk categories
- common definitions of concepts and terms
- risk statement formats
- standard templates
- roles and responsibilities
- authority levels for decision making
- lessons learned
- stakeholder registers
how are planning meetings and analysis a tool & technique for the Plan Risk Management process?
- planning meetings of PM, team members, stakeholders, etc held to develop risk management plan
- high level plans for conducting risk management activities are defined in these meetings
- risk management cost and schedule activities established
- risk management responsibilities assigned
- org templates for risk tailored to the project
- outputs of these meetings summarized in risk management plan
what goes in the risk management plan after the Plan Risk Management process?
- describes how risk management will be structured and performed on the project
includes
- methodology: approches, tools and data sources that may be used to perform risk management
- roles and responsibilities: defines the lead, support and risk management team members for each type of activity in the risk management plan
- budgeting: resources and funds needed for risk management to be included in the cost performance baseline, and establishes protocols for applying the contingency reserve
- timing: defines when and how often risk management process will be performed throughout the project and establishes protocols for applying schedule of contingency reserves
- risk categories: provies structure that ensures a comprehensive process of systematically identifying risks to a consistent level of detils (ex. a Risk Breakdown Structure – RBS)
- definitions of risk probability and impact: general definitions of probability and impact levels are tailored to the project
- probability and impact matrix: table with specific combinations of probability and impact that lead a risk to be rated high/med/low
- revised stakeholders; tolerances
- reporting formats: how outcomes of the risk management processes will be documented, analyzed and communicated
- tracking: hor risk activities will be recorded for the current project and future needs
what is the Identify Risks process?
- process of determining which risks may affect the project and documenting their characteristics
- participants can include PM, team members, risk management team, customers, subject matter experts, end users, other PMs, stake holders, risk management experts