PMBOK Ch 11 Flashcards
Test Review
The process of defining how to conduct risk management activities for a project.
Plan Risk Management— Definition
The key benefit of this process is that it ensures that the degree, type, and visibility of risk management are proportionate to both risks and the importance of the project to the organization and other stakeholders.
Plan Risk Management - Key Benefit
The process of identifying individual project risks as well as sources of overall project risk, and documenting their characteristics.
Identify Risks
The key benefit of this process is the documentation of existing individual project risks and the sources of overall project risk.
Identify Risks - Key Benefit
The process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics.
Perform Qualitative Risk Analysis
The key benefit of this process is that it focuses efforts on high-priority risks.
Perform Qualitative Risk Analysis - Key Benefit
The process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives.
Perform Quantitative Risk Analysis
The key benefit of this process is that it quantifies overall project risk exposure, and it can also provide additional quantitative risk information to support risk response planning.
Perform Quantitative Risk Analysis - Key Benefit
The process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks.
Plan Risk Responses
The key benefit of this process is that it identifies appropriate ways to address overall project risk and individual project risks.
Plan Risk Responses - Key Benefit
The process of implementing agreed-upon risk response plans.
Implement Risk Responses
The key benefit of this process is that it ensures that agreed-upon risk responses are executed as planned in order to address overall project risk exposure, minimize individual project threats, and maximize individual project opportunities.
Implement Risk Responses - Key Benefit
The process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project.
Monitor Risks
The key benefit of this process is that it enables project decisions to be based on current information about overall project risk exposure and individual project risks.
Monitor Risks - Key Benefit
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- Plan Risk Management - Planning
- Identify Risks - Planning
- Perform Qualitative Risk Analysis - Planning
- Perform Quantitative Risk Analysis - Planning
- Plan Risk Responses - Planning
- Implement Risk Responses - Executing
- Monitor Risks – Monitoring/Controlling
Risk Management Processes
- Integration (I)
- Scope (SAW)
- Schedule (SIX)
- Cost (CROWS)
- Quality (QUIETLY)
- Resources (REFILLING)
- Communication (COFFEE &)
- Risk (READING)
- Procurement (POETIC)
- Stakeholders (SONGS)
Knowledge Areas
Is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
Individual project risk
Is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.
Overall project risk
Uncertainty exists about some key characteristics of a planned event or activity or decision. Examples of variability risks include: productivity may be above or below target, the number of errors found during testing may be higher or lower than expected, or unseasonal weather conditions may occur during the construction phase.
Variability risk
Uncertainty exists about what might happen in the future. Areas of the project where imperfect knowledge might affect the project’s ability to achieve its objectives include: elements of the requirement or technical solution, future developments in regulatory frameworks, or inherent systemic complexity in the project.
Ambiguity risk
Provide a means for grouping individual project risks. A common way to structure risk categories is with a risk breakdown structure (RBS), which is a hierarchical representation of potential sources of risk. An RBS helps the project team consider the full range of sources from which individual project risks may arise. This can be useful when identifying risks or when categorizing identified risks.
Risk categories
Root cause analysis (see Section 8.2.2.2) is typically used to discover the underlying causes that lead to a problem, and develop preventive action. It can be used to identify threats by starting with a problem statement (for example, the project might be delayed or over budget) and exploring which threats might result in that problem occurring. The same technique can be used to find opportunities by starting with a benefit statement (for example, early delivery or under budget) and exploring which opportunities might result in that benefit being realized.
Root cause analysis
Every project and its project management plan are conceived and developed based on a set of assumptions and within a series of constraints. These are often already incorporated in the scope baseline and project estimates. Assumption and constraint analysis explores the validity of assumptions and constraints to determine which pose a risk to the project. Threats may be identified from the inaccuracy, instability, inconsistency, or incompleteness of assumptions. Constraints may give rise to opportunities through removing or relaxing a limiting factor that affects the execution of a project or process.
Assumption and constraint analysis
This technique examines the project from each of the strengths, weaknesses, opportunities, and threats (SWOT) perspectives. For risk identification, it is used to increase the breadth of identified risks by including internally generated risks. The technique starts with the identification of strengths and weaknesses of the organization, focusing on either the project, organization, or the business area in general. SWOT analysis then identifies any opportunities for the project that may arise from strengths, and any threats resulting from weaknesses. The analysis also examines the degree to which organizational strengths may offset threats and determines if weaknesses might hinder opportunities
SWOT analysis
The risk register contains details of individual project risks to be used as input for quantitative risk analysis.
Risk register
Quantitative risk analysis requires inputs to a quantitative risk analysis model that reflect individual project risks and other sources of uncertainty. Where the duration, cost, or resource requirement for a planned activity is uncertain, the range of possible values can be represented in the model as a probability distribution. This may take several forms. The most commonly used are triangular, normal, lognormal, beta, uniform, or discrete distributions. Care should be taken when selecting an appropriate probability distribution to reflect the range of possible values for the planned activity.
Representations of uncertainty
Escalate, Avoid, Transfer, Mitigate, Accept
Strategies for threats
Escalate, Exploit, Share, Enhance, Accept
Strategies for opportunities
- Plan Risk Management Process Group
Planning
- Identify Risks Process Group
Planning
- Perform Qualitative Risk Analysis Process Group
Planning
- Perform Quantitative Risk Analysis Process Group
Planning
- Plan Risk Responses Process Group
Planning
- Implement Risk Responses Process Group
Executing
- Monitor Risks Process Group
Monitoring/Controlling
