PMP Terms: Risk Management Flashcards
Risk
uncertainties in a project. Id the impact: individual vs overall. 21 ITTO
Non-Event Risk Categories
The first is variability risk, which looks at uncertainty in a planned event like there being more errors than expected or production is below target. The second is ambiguity risk. This is about what might be uncertain in the future. An example could be the complexity in the project. The third is project resilience, which deals with how well a project can bounce back from unknown risks. The project team might include extra contingency reserves for unknown risks and be flexible if they do happen. The last is integrated risk management. This goes beyond the project into the program or portfolio
Plan Risk Management
It is part of the Planning Proccess group. The key benefit of this process is that it describes how the project team will identify, evaluate, rank, and manage each risk. These risks will then be communicated to the stakeholders.
Tools and Tech: Plan Risk Management
.1 Expert judgment
.2 Data analysis
• Stakeholder analysis the most important
.3 Meetings
Output: Plan Risk Management
Risk Management Plan- a. Funding for the risk, b. methodology c. roles and responsibilities d. categories e. risk break down structure or RBS
Definition of risk probability and impacts
The project
may generate specific definitions of probability and impact levels or it may start with general definitions provided by the organization. The number of levels reflects the degree of detail required for the Project Risk Management
process, with more levels used for a more detailed risk approach (typically five levels), and fewer for a simple
process (usually three).
Probability Impact Matrix
Opportunities and threats are represented in a common probability and impact matrix using
positive definitions of impact for opportunities and negative impact definitions for threats. Descriptive terms
(such as very high, high, medium, low, and very low) or numeric values can be used for probability and impact.
Where numeric values are used, these can be multiplied to give a probability-impact score for each risk, which
allows the relative priority of individual risks to be evaluated within each priority level
Identify Risk
The identify risk process falls under the planning process group and is the process of determining which risks may effect the project and documenting their characteristics
Tools and Tech: Identify Risk
Expert judgment .2 Data gathering • Brainstorming • Checklists • Interviews .3 Data analysis* • Root cause analysis • Assumption and constraint analysis • SWOT analysis • Document analysis .4 Interpersonal and team skills* • Facilitation .5 Prompt lists predefined risks .6 Meetings
Outputs: Identify Risk
1. Risk register- main output .2 Risk report- main ouput .3 Project documents updates • Assumption log • Issue log • Lessons learned register
Perform Qualitative Risk Analysis
is 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.
Planning process group
Risk Analysis: Main Inputs
Project management plan • Risk management plan .2 Project documents • Assumption log • Risk register • Stakeholder register
Risk Analysis: Main Tools
• Interviews .3 Data analysis • Risk data quality assessment • Risk probability and impact assessment • Assessment of other risk parameters
Risk Analysis- Output
.1 Project documents updates • Assumption log • Issue log • Risk register • Risk report
Perform Quantitative Risk Analysis (PQRA)
is the process of numerically analyzing the combined effect of identified individual
project risks and other sources of uncertainty on overall project objectives
Planning process group
