Module 10: Project Risk Management Flashcards
Process of risk management
Determine ways to handle risk.
1) Identify all risks
2) Create risk register
3) create risk management plan
Types of risks (+ and -)
Positive (opportunities)
Negative (threats)
Avoid
Remove the threat from the project, or, if possible, eliminate its cause.
Transfer/Share
Put the outcome of the risk on someone else’s shoulders. For example, getting insurance or hiring a third party who would be responsible for the activity with the risk.
Mitigate
Reduce the impact of the risk. For example, if an activity requires the use of a new tool, but no one on the team has adequate experience, the project manager can mitigate the risk of failure by hiring a contractor with a lot of experience to work on this activity or training existing team members.
Accept
Some risk has to be accepted. For example, if a tool is required, but mitigating the risks of using it is not possible, the project manager may accept the risk and hope for the best.
Exploit
Use this strategy when the organization wants to make sure the opportunity is realized
Enhance
Use this strategy when an opportunity seems possible, but needs a little more encouragement from management to make it happen.
Share
Use this strategy when the organization shares the risk or opportunity with an external entity. Joint ventures are a good example of sharing opportunities.
Accept
Use this strategy when you accept the consequences of a risk. In this case, the project identifies the risk, but you take no action to minimize it. An example of this is when you are late for work, but choose to speed, knowing that there is a risk of getting a ticket.
Risk Register contents
Risk ID, priority order for each risk, name and short description, risk response, probability of risk occurring, owners who will take responsibility, category (scope, technical, schedule) and root cause
