Lecture 3 - Risk Management (definitions)

Question 1

Risk management

Answer 1

the art and science of identifying, analysing, and responding to risk factors throughout a project and in the best interest of its objective

Question 2

Project risk

Answer 2

any possible event that can negatively affect the viability of a project

Question 3

Four stages of risk management

Answer 3

Risk identification
Analysis of probability and consequences
Risk mitigation strategies
Control and Documentation

Question 4

Risk identification

Answer 4

Determine the specific risk factors that can reasonably
be expected to affect the project.

Question 5

Analysis of probability and consequences

Answer 5

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 6

Risk mitigation

Answer 6

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

Question 7

Control and documentation

Answer 7

Creating a knowledge base for future projects based on lessons learned

Question 8

Mitigation of risk

Answer 8

Accept
Minimize
Share
Transfer

Question 9

Accept

Answer 9

If the likelihood is small or the consequences are minor we may judge the risk as acceptable

Question 10

Minimize

Answer 10

Employ appropriate strategies e.g. ensure subcontracting quality

Question 11

Share

Answer 11

Form partnerships and not sull ownership

Question 12

Transfer

Answer 12

Passing the risk to another entity through a contract c