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Project Management > Chapter 11 Risk Management > Flashcards

Chapter 11 Risk Management Flashcards

1
Q

A risk response appropriate for both positive and negative risks, but often used for smaller risks within a project

A

Acceptance

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2
Q

Riska that have an uncertain, unclear nature, such as new laws or regulations, the marketplace conditions, and other risks that nearly impossible to project.

A

Ambiguity risks

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3
Q

A risk response to avoid the risk

A

Avoidance

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4
Q

The most common approach to risk identification; is usually completed by a project team with subject matter experts to identify the risks within the project.

A

Brainstorming

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5
Q

A ranking approach to identify the probability and impact by using a numerical value, from .01 (very low) to 1.o (certain)

A

Cardinal Scales

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6
Q

These risks may negative or positive outcomes.

A

Business Risks

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7
Q

A quick and cost-effective risk identification approach.

A

Checklists

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8
Q

The consideration of the risk ranking scores that takes into account any bias, the accuracy of the data submitted, and the reliability of the nature of the data submitted

A

Data precision

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9
Q

A method to determine which of two or more decisions is the best one. The model examines the costs and benefits of each decision’s outcome and weighs the probability of success for each of the decisions.

A

Decision tree

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10
Q

An anonymous method of querying experts about foreseeable risks within a project, phase, or component of a project. The results of the survey are analyzed by a third party, organized, and then circulated to the experts. The goal is to gain consensus on project risks within the project.

A

Delphi Technique

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11
Q

A risk response that attempts to enhance the conditions to ensure that a positive risk event will likely happen.

A

Enhancing

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12
Q

A risk response that is appropriate for both positive and negative risk events that may fall outside of the project manager’s authority to act upon

A

Escalating

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13
Q

The monetary value of risk exposure is based on the risk’s probability and impact in the risk matrix. This approach is typically used in quantitative risk analysis because it quantifies the risk exposure.

A

Expected Monetary value (EMV)

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14
Q

A risk response that takes advantage of the positive risks within a project.

A

Exploit

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15
Q

These risks are outside of the project but directly affect it. For example, legal issues, labor issues, a shift in project priorities, or weather.

A

External Risks

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16
Q

System or process flowcharts show the relationship between components and how the overall process works. These are useful for identifying risks between system components.

A

Flowcharts

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17
Q

This charts out a decision problem. It identifies all of the elements, variables, decisions, and objectives and also how each factor may influence another.

A

Influence diagrams

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18
Q

This cause-and effect diagrams are also called fishbone diagrams

A

Ishikawa diagrams

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19
Q

Identified and assigned to a watch list for periodic monitoring

A

Low-priority risk watch list

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20
Q

Risks that are expected to remain after a risk response

A

Residual Risks

21
Q

An ordinal scale that used red, amber, and green (RAG) to capture the probability, impact and risk score.

A

RAG Rating

22
Q

The approach attempts to numerically assess the probability and impact of the identified risks.

A

Quantitative risk analysis

23
Q

This approach “qualifies” the risks that have been identified in the project. It examines and prioritizes risks based on their probability of occuring and their impact on the project should they occur.

A

Qualitative risk analysis

24
Q

These risks have only a negative outcome.

A

Pure risks

25
Q

These risks deal with faults in the management of the project: the unsuccessful allocation of time, resources, and scheduling; unacceptable work results; and poor project management.

A

Project Management risks

26
Q

A prompt list is used for risk identification. PESTLE examines risks in the Political, Economic, Social, Technological, Legal, and Environmental domains.

A

PESTLE

27
Q

The performing organization can contribute to the project’s risks through unreasonable cost, time, and scope expectations; poor project prioritization; inadequate funding or the disruption of funding; and competition with other projects for internal resources.

A

Organizational risks

28
Q

A ranking approach that identifies and ranks the risks from very high to very unlikely or to some other value.

A

Ordinal risks

29
Q

The simulation is completed using a computer software program that can simulate a project, using values for all possible variables, to predict the most likely model.

A

Monte Carlo Technique

30
Q

The process of examining the project from the perspective of each characteristic; Strengths, weaknesses, opportunities and threats.

A

SWOT analysis

31
Q

A prompt list used in risk identification to examine the technical, environmental, commercial, operational and political factors of the project.

A

TECOP

32
Q

A risk response that transfers the ownership of the risk to another party. Insurance, licensed contractors, or other project teams are good examples of transference. A fee and contractual relationships are typically involved with the transference of a risk.

A

Transference

33
Q

A type of risk based on the variations that may occur in the project, such as production, number of quality errors, or even the weather.

A

Variability risks

34
Q

A prompt list is used in risk identification that examines the Volatility, Uncertainty, Complexity, and Ambiguity of risk factors within the project.

A

VUCA

35
Q

A risk response that shares the advantages of a positive risk within a project

A

Sharing

36
Q

A quantitative risk analysis tool that examines each risk to determine which one has the largest impact on the projects’ success.

A

Sensitivity analysis

37
Q

New risks that are created as a result of a risk response.

A

Secondary risks

38
Q

This aims to find out why a risk event may be occurring, the causal factors for the risk events, and then, eventually, how the events can be mitigated or eliminated.

A

Root Cause identification

39
Q

The calculated score is based on each risk’s probability and impact. The approach can be used in both qualitative and quantitative risk analysis.

A

Risk score

40
Q

The level of ownership an individual or entity has over a project risk.

A

Risk responsibilities

41
Q

An Audit to test the validity of the established risk responses.

A

Risk response audit

42
Q

This report explains the overall project risks and provides summaries about the individual projects risks.

A

Risk report

43
Q

A project plan component that contains all of the information related to the risk management activities. It’s updated as risk management activities are conducted to reflect the status, progress, and nature of the project risks.

A

Risk register

44
Q

The individual or entities that are responsible for monitoring and responding to an identified risk within the project.

A

Risk owners

45
Q

The agreed-upon approach to the management of the project risk processes.

A

Risk management planning

46
Q

A project management subsidiary plan that defines how risks will be identified, analyzed, responded to, and monitored within the project. The plan also defines the iterative risk management process that the project is expected to adhere to.

A

Risk Management plan

47
Q

The systematic process of combining through the project, the project plan, the work breakdown structure, and all supporting documentation to identify as many risks that may affect the project as possible.

A

Risk identification

48
Q

An uncertain event or condition that can have a positive or negative impact on the project.

A

Risk

Project Management (11 decks)

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