Chapter 11- Project Risk Management Flashcards
Plan Risk Management
Process of defining how to conduct risk management activities for the project. The key benefit- ensures that the degree, type and visibility of risk management are commensurate with both the risks and the importance of the project organisation.
Plan Risk Management ITTO
Inputs: Project Management Plan Project Charter Stakeholder register Enterprise Environmental Factors Organisational Process Assets
T&T
Analytical techniques
Expert judgement
Meetings
Outputs
Risk Management Plan
Project Risk
An uncertain event or a condition, that if occurs can have positive or a negative impact on one or more objectives such as scope, quality, schedule and cost.
Risk appetite
Degree of uncertainty an entity is willing to take on in anticipation of a reward.
Risk tolerance
degree, amount, or volute of risk that an organisation or individual will withstand
Risk threshold
measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below the threshold the organisation will accept the risk, above will not.
Positive risk/ negative risk
opportunity/threat.
Risk Management Plan includes
Methodology (defines approaches, tools, data sources that will be used to perform risk management on the project). Roles and Responsibilities Budgeting Timing Risk Categories Definitions of risk probabilities and impact Probability and impact matrix Revised stakeholder's tolerance Reporting formats Tracking
Ways to classify Risk Categories
External- Regulatory, environmental, governmental, market-related shifts.
Internal-Time, cost, or scope changes; inexperience, poor planning; people; staffing; material; equipment.
Technical-change in technology
Unforeseeable
Identify risks
Process of determining which risks may affect the project and documenting their characteristics. The key benefit of this process is the documentation of existing risks and the knowledge and ability it provides to the project team to anticipate events.
Identify Risks ITTO
Inputs 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 Enterprise environmental factors Organisational process assets
TT Documentation reviews Information gathering techniques Checklist analysis Assumptions analysis Diagramming techniques SWOT analysis Expert judgement
Output Risk register ( initial incl list of identified risks, list of potential responses)
Information gathering techniques
Brainstorming, Delphi Techniques, Interviewing, Root cause analysis.
Diagramming techniques
Cause and effect diagrams
System or process flow charts
Influence diagrams
Information gathering techniques
These are also known as Ishikawa or fishbone diagrams and are useful for identifying causes of risks
System or process flow charts
These show how various elements of a system interrelate and the mechanism of causation
Influence diagrams
These are graphical representations of situations showing casual influences, time ordering of events, and other relationships among variables and outcomes
Perform a qualitative risk analysis
The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact. The key benefit of this process is that it enables project managers to reduce the level of uncertainty and to focus on a high priority of risks.
Perform a qualitative risk analysis ITTO
Inputs Risk management plan Scope baseline Risk register Enterprise environmental factors Organisational process assets
TT Risk probability and impact assessment Probability and that impact matrix risk data quality assessment Risk categorization Risk urgency assessment Experts judgment
Outputs
Project documents updates
Risk probability assessment
It investigates the likelihood that each specific risk will occur.
Risk impact assessment
Investigates the potential effect on the project objective such as schedule, cost, quality, or performance, including both negative effects for threats, and positive effects for opportunities.
Probability and that impact matrix
add details
risk data quality assessment
technique to evaluate the degree to which the data about risks is useful for risk management. It involves examining the degree to which risk is understood and the accuracy, quality, reliability and integrity of the data about the risk.
Perform Quantitative risk analysis
Process of numerically analysing the effect of identified risks on overall project objectives. The key benefit of this process is that it produces quantitative risk information to support the decision making in order to reduce project uncertainty.
Perform Quantitative risk analysis ITTO
Inputs Risk management plan Cost management plan Schedule management plan risk register Enterprise environmental factors Organisational process assets
TT
Data gathering and representation techniques ( interviewing, probability distributions)
Quantitative risk analysis and modelling techniques ( sensitivity analysis, expected monetary value analysis, modelling and simulation)
Experts judgment
OUTPUTS
Project documents updates
