Chapter 5.4 Risk Management Flashcards
Identify, analyze treat and monitor the risks continuously.
What is the purpose of Risk Management?
Identify, analyze, treat and monitor the risks continuously.
Risk management is a continuous process for systematically addressing risk throughout the life cycle of a system product or service. It can be applied to risks related to the acquisition, development, maintenance or operation of a system.
What is E.H. Conrow’s definition of “opportunity”?
The potential for the realization of wanted, positive consequences of an event.
Technical risk is?
Systems technological accomplishments near the limits of the state-of-the-art
Internal interfaces existing by the system elements
Potential failure to meet any requirement that can be expressed in technical terms is a source of technical risk.
Schedule risk is?
Rushing development to deploy as soon as possible to exploit a marketing opportunity or to meet an imminent threat
The possibility the project will fail to meet schedule milestones
Cost risk?
Always present because all systems are funding-limitied
The possibility that available budget will be exceeded
If a project must devote more resources than planned to achieve technical requirements
If project must add resource to support slipped schedules due to any reason
If changes must be made to the number of items produced, or if changes occur in the organization or national economy
Collective effects of element-level cost risks can produce cost risk for the whole project
Describe Ambient Risk
Risk caused by the environment of the system.
What are four general strategies of coping with risk?
- Transference (by agreement with another party)
- Avoidance (change of requirements or redesign)
- Acceptance
- Taking action to reduce anticipated negative impacts
Objective of Risk Management
Balance the allocation of resources such that the minimum amount of resources achieves the greatest risk mitigation or opportunity realization benefit.
Risk Management Process Inputs?
Candidate risks and opportunities
Where, in what process, are risk situations identified?
Project Assessment and Control Process
Controls and enablers governing the Risk Management Process?
Applicable Laws & Regulations Industry Standards Agreements Project Procedures and Standards Project Directives Organization/Enterprise policies, procedures and standards Organizational/Enterprise infrastructure Project infrastructure
Outputs of the Risk Management Process?
Risk Management Strategy
Risk Profile (risk matrix)
Risk Report
Describe the content of the Risk Report
Risks with their rationale, assumptions, treatement plans, current status
Action plan for selected risks to direct the project team to properly respond
Change requests generated to mitigate technical risk
What are the Risk Management Process activities?
Plan risk management (risk strategy)
Manage the Risk Profile (risk thresholds and acceptable/unacceptable risk conditions)
Analyze Risks (identify/define risk situations, likelihood, consequences, priority for treatment and treatment plan)
Treat Risks (generate plan of action when risk threshold exceeds acceptable levels)
Monitor Risks (Maintain records and transparent communications)
Evaluate the Risk Management Process
What statement format is used to identify a risk?
if then
