Chapter 7 Flashcards
Risk
An event that poses a potential threat or opportunity for the project
Rework
Going back and repeating steps you’ve already done due to a risk
Process of risk management
- Identify risks
- Analyze risks
- Determine the probability of risk
- Combine impact analysis with probability
Known Risks
Risks with predictable outcomes
Known risks with uncertain outcomes
Risks that you know about but the outcomes are not predictable
Uknown risks
Risks you can’t identify
Where to find risks
- WBS
- Task lists
- Critical success factors
- Business Risks
Business Risks
- Marketability
- Timing
- Management issues
- Vendor delays
- External Project risks
Risk Register
Identification technique that documents information about the risk
Elements of a risk register
- Identification number
- Name
- Risk score
- Risk owner
- Location of the risk response plan
Identification techniques
- Risk register
- Historical information
- Brainstorming
- Delphi technique
- Nominal group technique
- Interviewing
- Checklist of common project risks
probability
The likelihood of the risk occurring
Assigning Risk impacts
using high-med-low ratings to indicate the impact the risk event has on the project.
Probability Impact Matric
Multiplies the probability score by the impact value to come up with an overall risk score
Risk tolerance
The amount of risk a person or organization is willing to tolerate in exchange for the perceived or actual benefits of partaking in the activity
Risk appetite
The level of uncertainty the stakeholders are willing to accept in exchange for the potential positive impact of the risk
Risk Threshold
The level of uncertainty or impact the organization is willing to operate within
escalate
Alerting the risk owner and handing off the management of the risk to them
Risk Owner
the person responsible for monitoring and managing risks and implementing the risk response plan
Accept
Willing to accept the consequences of the risk should it occur.
Avoid
Avoiding the impact of the risk event or eliminating the cause of the risk altogether
Transfer
transfers the responsibility for the management of the risk event to a third party
Mitigate
Reduce the impact of the risk event by reducing the probability of the risk occurrence or reducing the impact of the risk event to an acceptable level.
Exploit
purposefully looking for opportunities to ensure a positive impact.
Share
Assign the risk to a third-party owner who is best able to bring about the opportunity the risk event presents
Enhance
Actively working to increase the probability and or impact of the risk event to help the organization benefit from the opportunity
Contingency planning
a process of planning for known risks to help ensure project success if a risk event occurs
Residual risks
Leftover impacts and or minor risks that remain after the primary risk event has occurred and responses have been implemented
Secondary Risks
A new risk that is generated as a result of implementing risk response plan
Steps for Risk management
- Identify risks
- Analyze risks to determine the probability of the event occurring
- Analyze risks to determine the impact of the risk
- Calculate the overall risk score
- Create detailed response plans and assign resources to carry out the plan in the even a risk occurs.
- Create contingency plan
- Document everything in the risk register.
Risk Triggers
Signs that a risk event is about to occur.
