Post Midterm Risk Management Flashcards
what is risk tolerance?
the amount of utility (satisfaction) received from a potential payoff (stake)
what is project risk management?
identifying, assigning, and responding to risk through the life of a project into order to best meet project objectives
Risk management process? (5)
- risk management planning
- –deciding how to approach te risk management activities for the project
- risk identification
- –determining which risks are likely to affect a project and documenting their characteristics
- qualitative risk analysis
- –prioritizing risk based on their probability and impact of occurance
- quantitative risk analysis
- –numerically estimating the effects of risks on project objectives
- risk monitoring and control
- –monitoring unknown risks, identifying new risks, reducing risks, evaluating the effectiveness of risk reduction
What is important with respect to the risk management plan?
the project team should review project documents and understand te organizations and the sponsors approach to risk
5 categories of risk
external risk
financial risk
technology risk
organizational and people risk
project management (structure/process) risk
4 risk identification tools?
they help find risks.
brainstorming
interviewing
swot analysis
risk real down structure
what is a risk register?
risk event is what?
document that contains the results of various risk management processes. displayed in a table
documents potential risk events and related info.
RISK EVENTS: refer to specific uncertain events that may occur
qualitative risk analysis is what?
tools include?
likelihood and impact of identified risks to determine their magnitude and priority
probability/impact charts
expert judgement
Quantitative risk analysis is what?
how is it done?
follows a qualitative risk analysis but both can be done together.
done through a decision tree analysis
and through simulation
what is the Monte Carlo analysis (with regards to simulation)
simulated a models outcome many times to provide a statistical distribution of the calculated results
used pessimistic, optimistic, and most likely
4 risk response planning
- risk avoidance
- eliminates a threat - risk acceptance
- accepting the consequence if a risk occurs - risk transferance
- shifting te consequence of risk and responsibility to a third party - risk mitigation
- reducing the impact of a risk ever by reducing the probability of it’s occurance. contingency plan
Workarounds are what?
unplanned responses to risk events that must e done when there are no are contingency plans
main outputs of risk monitoring and control? (3)
- request changes
- recommended correct and preventative actions
- updates to the risk register, project plan, and org process assets
