Chapter 11: Project Risk Management Flashcards
What is a workaround and when might it be used?
A response to a threat that has occured, for which a prior response had been planned or was not effective.
What is the primary goal of risk management?
Increase the probability and impact of positive risk (opportunities) and decrease the probability and impact of negative risks (threats)
What is the difference between contingency reserves and management reserves?
Contingency reserves: Budget within the cost baseline or performance measurement baseline that is allocated for identified risks that are accepted and for which contingent or mitigating responses are developed.
Management reserves: An amount of the project budgets reserved for unforseen work that is within the scope of the project. THe management reserve is not included in the performance measurement baseline (PMB).
What is probability?
The likelihood that the event or condition may occur.
Which process uses information-gathering techniques as tools and techniques?
What are some exemples of information gathering techniques?
Identify Risk process
Examples of information-gathering techniques: Brainstorming Delphi technique Interviewing (or expert interviewing) Root cause analysis
What is the formula for calculating the EMV and how is the value used?
P x Value of I = EMV
What are the strategies for negative risks (threats)?
Avoid
Transfert
Mitigate
Accept
What is the purpose of the planning meetings and analysis in the Plan Risk Management process?
Conducting high-level plans for risk management activities, which might:
Determine the definition of risk, probability, and impact for projects
Assign risk reserve approches
Tailor templates for risk documents
Develop cost elements and schedule activities for the project budget and schedule
Why is the stakeholder register an input to Identify Risks?
Key stakeholders, especially customers, identify in the stakeholder register should participate in identifying risks.
What is a trigger condition?
An event or situation that indicates that a risk is about to occur.
Updates to the risk register are key outputs of which 4 Project Risk Management processes?
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Control Risks
Risk-related contract decisions are outputs of which Project Risk Management process?
Plan Risk Responses
What are the 2 kind of risk?
Negative risks (threats): Can result in increased cost, lost time, or other detrimental to the project
Positive risks (opportunities): Can save time or money or produce other project benefits
What are the 13 inputs to Identify Risks?
Risk management plan Cost management plan Schedule management plan Quality management plan Human resource management plan Scope baseline Activity cost estimates Activity duration estimates Stakeholder register Project documents Procurement documents Enterprise environmental factors Organizational process assets
What is the primary difference between Plan Risk Management and Plan Risk Responses?
Plan Risk Management: The process of defining how to conduct risk management activities for a project.
Plan Risk Responses: The process of developing options and actions to enhance opportunities and reduce threats to project objectives.
What is the difference between secondary risks and residual risks?
Secondary risks: A risk that arises as a direct result of implementing a risk response.
Residual risks: A risk that remains after risk responses have been implemented.
What is impact?
The consequences to the project if an event occurs
What is the primary output of Identify Risk?
The risk register
Risk probability and impact assessment, probability and impact matrix, risk data quality assessment, risk categorization, risk urgency assessment, and expert judgement are tools and techniques for which Project Risk Management process?
Perform Qualitative Risk Analysis
What are the 6 Project Risk Management processess?
Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Control Risks
What are the strategies for positive risks (opportunities)?
Exploit
Enhance
Share
Accept
What are the main responsibilities of risk owners?
Tracking their assisgned risks
Implementing the documented risk response pan if/when the risk occurs
Monitoring the risk for changes in probability or impact
Why ar documentation reviews considered tools and techniques for Identify Risks?
Project documentation, including plans, assumptions, previous project files, and plans from past projects can be good indicators of project risks.
How does the PMI define risk?
An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
What are the primary inputs to Plan Risk Management?
Project Management plan Project charter Stakeholder register Enterprise environmental factors Operational process assets
Risk assessment includes which 3 risk management processes?
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
What is the formula for calculating the risk score and how is this score used?
P x I = Risk Score
When performing qualitative risk analysis, calculaate a risk score for each risk identified on the risk register in order to determine which risks have the highest score and should be further considered by quantitative risk analysis and/or risk response planning.
