Chapter 11 Introducing Project Risk Management

Question 1

Decision tree analysis

Answer 1

A type of analysis that determines which of two decisions is the best. The decision tree assists in calculating the value of the decision and determining which decision costs the least.

Question 2

Delphi technique

Answer 2

A method to query experts anonymously on foreseeable risks within the project, phase, or component of the project. The results of the survey are analyzed and organized, and then circulated to the experts. There can be several rounds of anonymous discussions with the Delphi Technique. The Goal is to gain consensus on project risks, and the anonymous nature of the process ensures that no one expert’s advice overtly influences the option of another participant.

Question 3

Enhance

Answer 3

To enhance a risk is to attempt to modify its probability and/or its impacts to realize the most gains from it.

Question 4

Exploit

Answer 4

The organization wants to ensure that the identified risk does happen to realize the positive impact associated with the risk event.