Crowe Risk Management Flashcards
Risk Management
Knowledge area with 6 processes that emphasize planning and evaluating the effectivenes of the plans. Risk includes all uncertainty, which could be bad news (negative risk) or good news (positive risk) for your project.
Processes:
• Plan Risk Management (Planning)
• Identify Risks (Planning)
• Perform Qualitative Risk Analysis (Planning)
• Perform Quantitative Risk Analysis (Planning)
• Plan Risk Responses (Planning)
• Monitor and Control Risks (Monitoring and Controlling)
Plan Risk Management
The goal of this first planning process within risk management is to create the risk management plan. This plan will shape how the team carries out the remaining risk processes.
Key Inputs
• (none)
Key Tools
• Planning Meetings & Analysis
Key Outputs
• Risk Management Plan
Identify Risks
The second planning process of risk management works to create a risk register (a list of all possible risks that may affect the project).
Key Inputs
• Activity Cost Estimates
• Scope Baseline
Key Tools
• Checklist Analysis
• Diagramming Techniques
Key Outputs
• Risk register
Perform Qualitative Risk Analysis
Planning process of risk management performs a first asessment of the identified risks to determine which risks on the list “qualify” for further analysis. the team will then have a general ranking and prioritization of risks that might affect project results.
Key Inputs
• (none)
Key Tools
• Risk Probability and Impact Assessment
• Probability & Impact Matrix
Key Outputs
• (none)
Perform Quantitative Risk Analysis
Planning process of risk management that seeks to understand potential impact of each risk fully and assign specific rankings and cost & time estimates to risks.
Key Inputs
• (none)
Key Tools
• Probability Distributions
• Quantitative Risk Analysis & Modeling Techniques
Key Outputs
• (none)
Plan Risk Responses
Planning process of risk management that creates a plan for how each riak will be handled, detailing responses.
Key Inputs
• (none)
Key Tools
•Strategies for Negative Risks or Threats
•Strategies for Positive Risks or Opportunities
Key Outputs
• Risk-Related Contract Decisions
Monitor & Control Risks
monitoring and controlling process of risk management that looks back at performance, compared with the plan.
The emphasis is on the risk plans. Are they effective? Are schedule and cost reserves adequate?
Key Inputs
• (none)
Key Tools
• Risk Reassessment
• Risk Audits
• Reserve Analysis
Key Outputs
• (none)
Planning Meetings & Analysis
Tool of Plan Risk Management.
Meeting of subset of stakeholders to map out the approach to identify, analyze, and plan for risks that may impact this project.
Risk Management Plan
A component of the project management plan created in Plan Risk Management. It determines how the team carries out the remaining risk processes.
Includes:
• What levels of risk are acceptable
• How risks will be managed
• Who will be responsible for risk-related activities
• How much schedule and budget will be devoted to risk activities
• How risk findings will be communicated
• the risk breakdown structure (RBS), a decomposition of the risks into general cetegories
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Checklist Analysis
Tool that provides structure to the Identify Risks process by referencing categories of risks from prior projects that should be considered here. It may use the RBS as a point of reference.
Risk Register
A list of risks that may impact this project. It is created in the Identify Risks process. It becomes an input into 4 other risk management processes and is updated in each of these.
Risk Register is updated with: • Descriptions • Categories • Ranking • Cost estimates • Schedule impacts • Contingency plans • Strategies selected
Risk Probability & Impact Assessment / Probability & Impact Matrix
Tool of Perform Qualitative Risk Analysis to evaluate risks to help assign priorities.
For each risk, assign the likelihood that the risk will occur and the impact if it does occur. Both values are given a relative ranking (low, medium, high) and combined to arrive at a risk score. These scores help set priorities with the list of risks.
Probability Distributions
Tool of Perform Quantitative Risk Analysis that uses mathematical representations to show the likelihood or probability of a risk event occurring.
Quantitative Risk Analysis & Modeling Techniques
Toos of Perform Quantitative Risk Analysis with several subtopics:
Sensitivity Analysis
• Determining how sensitive the project is to a risk event
Expert Judgment
• Interviewing experts to mine their knowledge of a risk
Expected Monetary Value
• Assigns a likely dollar amount to risk events
Decision Tree Analysis
• Shows probabilities and results of risk events
Simulation and Modeling
• Monte Carlo Analysis is an example of this technique
4 Strategies for Negative Risks or Threats
- Avoid
- Transfer
- Mitigate
- Accept
Tool of Plan Risk Responses.
