LO10 Understand Risk and Issue Management in the context of project management

Question 1

10.1 Stages of the risk management process

Answer 1

• Initiate

Ensure that there is common understanding of the project to which the risk management process is applied

Make sure the level of process used will fit the specific requirements of the project

Creation of the risk management plan - Reference for all stakeholders, makes it clear how risk is going to be tackled in the project

• Identification

Essential for project objectives to be understood.

Assumption and constraints analysis

Brainstorming

checklists

prompt lists

SWOT analysis

• Analysis

Probability/impact grid

• Response

Risk owner uses Risk identification and risk analysis to determine whether to uses resources to bring risk into a tolerable level

Deciding on when to react is down to the appetite for risk of the sponsor and ultimately the investing organisation

• Closure

Question 2

Proactive and reactive responses to risk

Answer 2

• avoid
• reduce
• transfer
• or accept
• and exploit
• enhance
• share
• reject