Chapter 11. Risk Management Flashcards
What are the processes and outputs associated with Risk Management?
(In Order)
Plan Risk Management > Risk Management Plan
Identify Risks > Risk Register & Risk Report
Perform Qualitative Risk Analysis > none
Perform Quantitative Risk Analysis > none
Plan Risk Responses > none
Monitor Risks > none
Implement Risk Responses > Change Requests
Monitor Risks > none
What are the primary process groups touched by Risk Management and which processes fall in which group?
Planning - Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, and Plan Risk Responses
Executing - Implement Risk Responses
Monitoring & Controlling - Monitor Risks
What are the three characteristics of risk?
- It is related to an uncertain event.
- It may affect the project for good or for bad. Although typically bad, it may well have an upside (a favorite exploit on the test).
- Can be an individual project risk or an overall project risk.
What is an individual project risk?
An individual project risk threatens an objective.
What is an overall project risk?
Over project risks threaten the success of the project.
What are the components to consider in a tailored risk approach?
Size of Project Project Complexity Inherent Project Risk Project Methodology Importance
What is the most important compoment of the Plan Risk Management process, aka its sole output?
The Risk Management Plan
Why is Plan Risk Management (and developing the Risk Management Plan) so important?
Risks can significantly influence decisions made about scope, time, cost, quality and procurement.
What are the inputs to Plan Risk Management?
Project Charter - may contain information about risk tolerance and constraints
Project Management Plan - The stakeholder register will list stakeholders who may be able to give input about risk approaches and who may be affected by risk management decisions
Project Documents
Enterprise Environmental Factors
Organizational Process Assets
What are the tools used in Plan Risk Management?
Expert Judgement
Data Analysis
Meetings
What are the outputs of Plan Risk Management
The Risk Management Plan - serves as roadmap to the other 6 risk management processes
Includes level of risk considered tolerable, how risks will be managed, who will be responsible for risk activity, the amounts of time and resource that will be allotted to risk activities, and how risk findings will be communicated.
May also contain info such as standard vocabulary about probability and impact, as they apply to the project.
What is a key part of the Risk Management Plan?
Risk Breakdown Structure (RBS), a graphical, hierarchical decomposition used to facilitate understanding and organization.
Example RBS, p 476 showing sample risk categories:
External Risks
Internal Risks > Technology > Intergration Problems with Backend Solutions
Identify Risks is often performed multiple times on a project why?
Because you understanding of risk and the nature of the risks will change and evolve as the project progresses.
Why is identifying risks important?
It establishes a risk register, which drives the other Risk Management processes.
What are the inputs to Identify Risks?
Project Management Plan
Project Documents
Agreements - rewards and penalties in agreements (contracts) represent types of risks
Procurement Documents - portions of the project procured from outside organizations carry their own inherent risks
Enterprise Environmental Factors
Organizational Process Assets
What are the tools used to Identify Risks?
Expert Judgement Data Gathering - Brainstorming & checklists to make sure the right risks are identified. Data Analysis: - Root Cause Analysis using Ishikawa (fishbone) diagram or the 5 why technique_ to trace risk events back to their underlying factors. See p. 480 for example. - Assumptions & Constraint Analysis - SWOT Analysis - Document Analysis Interpersonal and Team Skills Prompt Lists Meetings
What is the 5 why technique?
The practice of asking why five times to uncover the root cause of an issue. Looks at the problem and asks, “why.” Takes that response and asks, “why” and continues to do that five times in all. The idea is that by the 5th iteration you should have reached the root cause.
Pioneered at Toyota.
What is SWOT Analysis?
A tool used to measure strength (S), weaknesses (W), opportunities (O), and threats (T). each one is plotted in a quadrant. The quandrant where the weaknesses and threats are most concentrated represent the highest negative risks, and where the strengths and opportunities are most concentrated usuall represent the highest positive risks on the project. See p. 481 for example.
What are prompt lists?
A list used by the project team to help facilitate a risk review.
The different frameworks per the PMBOK guide are:
- PESTLE (political, economic, social, technological, & legal, environmental)
- TECOP (technical, environmental, commercial, operational, political)
- VUCU (volatility, uncertainty, complexity, ambiguity)
These are usually evaluated at the end of each phase of a project.
What are the outputs for Identify Risks?
Risk Register
Risk Report
Project Documents Updates - such as an updated RBS
What does a risk register include?
list of all identified risks possible reactions to each risk what the root causes are what categories the risks fall into risk owners
What is the different between a risk report and risk register?
A risk report is more of a summary document, looks at factors contributing to risk and high-level information on the identified risks.
What is involved with Perform Qualitative Risk Analysis?
It takes each risk from the risk register and works to analyze the probability it will occur and its impact if it does. By using a probability and impact matrix (PIM), a prioritization and ranking can be created, and updated on the risk register. This allows you to put the right emphasis on the right risks.
