Chapter 7 Key Terms

Question 1

Analysis of probability and consequences

Answer 1

The potential impact of these risk factors, determined by how likely they are to occur and the effect they would have on the project if they did occur.

Question 2

Change management

Answer 2

A report that is a part of risk mitigation strategy. The report asks the questions: Who, what, when, why, and how.

Question 3

Contractual or legal risk

Answer 3

This form of risk is common with projects in which strict terms and conditions are drawn up in advance.

Question 4

Control and documentation

Answer 4

Creating a knowledge base for future projects based on lessons learned.

Question 5

Execution risk

Answer 5

Is a broad category that seeks to assess any unique circumstances or uncertainties that could have a negative impact on execution of the plan.

Question 6

Financial risk

Answer 6

The financial exposure a firm opens itself to when developing a project.

Question 7

Mentoring

Answer 7

Junior or inexperienced project personnel are paired with senior managers to help them learn best practices.

Question 8

Project risk

Answer 8

As “an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.”

Question 9

Project risk analysis and Management (PRAM)

Answer 9

The PRAM model offers a step-by-step approach to creating a comprehensive and logically sequenced method for analyzing and addressing project risk

Question 10

Risk Identification

Answer 10

Falls into one or more classifications:
Financial, Technical, commercial, execution, contractual or legal

Question 11

Risk Management

Answer 11

The capacity of any project to run into trouble. Identify, analyze, and responding to risk factors throughout the life of a project.

Question 12

Risk mitigation strategies

Answer 12

Steps taken to minimize the potential impact of those risk factors deemed sufficiently threatening to the project.