Module 3 Flashcards
Risk register
A repository in which outputs of risk management processes are recorded
Non-event risk
Subtle risks which can be either due to set of conditions which are certain to happen (but the extent of its impact is not known) or ambiguity or disruption that may happen which is not known at all.
It is very difficult to plan for non event based risks, and Project has to have the level of resilience, nimbleness and agility built in to adapt to such risks
Risk P&I Matrix (Probability and Impact Matrix)
A grid for mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs.
Risk score
A calculated number (score) that reflects the severity of a risk due to some factors. Risk Score is the value determined by multiplying the Impact Rating with Risk Probability.
Risk trigger
An event or situation that indicates that a risk is about to occur.
Risk Breakdown structure (RBS)
A hierarchical representation of potential sources of risk
SWOT analysis
An analysis of strengths, weakness, opportunities, and threats of an organization, project or option
Project resilience
The capacity to maintain core purpose and integrity in the face of external or internal shock and change. Sometimes known as “bounce-back-ability.” This requires each project to have:
The right level of contingency built into its budget and schedule for currently-unknown emergent risks, in addition to a specific risk budget for known risks.
Project processes that are flexible enough to cope with emergent risk while maintaining overall direction towards project goals, including strong change management.
An empowered project team with clear objectives, who is trusted to get the job done within agreed limits, without needing approval for every small deviation from the original plan.
Frequent targeted project reviews which review early warning signs and triggers in order to identify emergent risks as early as possible and allow proactive action to be taken
Prompt list
Checklist with a category of risk. This tool is a simple series of broad risks, such as Environmental or Legal, rather than specific risks, like flooding or regulatory changes. The idea is to push (prompt) you to think and brainstorm of risks in groups and eventually prioritize them.
Risk threshold
The level of risk exposure above which risks are addressed and below which risks may be accepted.
EVM (Earned Value Management)
Methodology that combines scope, schedule and resource measurements to asses project performance and progress
EMV (Expected Monetary Value)
Method of calculating the average outcome when the future is uncertain
Decision trees
Diagram or chart that people use to determine a course of action or show a statistical probability. Decision trees allow project managers to distinguish between decisions where we have control and chance events that may or may not happen. It takes account of the costs and rewards of decision options as well as the probabilities and impacts of associated risks.
Strategies for Positive risks
Positive Risks are risks that produce a positive project outcome. Also referred to as opportunities. Escalate Exploit Enhance Share Accept
Strategies for Negative risks
Negative risks are risks that have a negative impact on the project. Also referred to as threats. Escalate Avoid Transfer Mitigate Accept
