Project Risk Management Flashcards
Plan Risk Management
The process of defining how to conduct risk management activities in a project
Identify Risks
Identifying individual and overall project risks and documenting their characteristics
Perform Qualitative Risk Analysis
Prioritizing individual project risks based on their probability of occurrence and impact
Perform Quantitative Risk Analysis
Numerically analyzing the combined effect of individual project risk and other sources of uncertainty
Plan Risk Responses
Developing options, selecting strategies, and agreeing on actions to address overall project risk exposure
Implement Risk Responses
Implementing the agreed upon risk response plans
Monitor Risks
Monitoring the implementation of the agreed upon risk response plans, tracking risks, identifying and analyzing new risk, and evaluating the risk process effectiveness
What are the two types of risk in a project?
Individual and overall project risk
Can a risk have a positive effect?
Yes, known as opportunities
What are the two types of non-event risks?
Variability and ambiguity risk
What is a variability risk?
Uncertainty exists about some key characteristics of a planned event, activity, or decision
What is ambiguity risk?
Uncertainty exists about what might happen in the future and how it may affect the project’s ability to achieve its objectives
How can variability risks be addressed?
With Monte Carlo analysis
How can ambiguity risks be addressed?
Defining areas where knowledge is deficit then filling in gaps by obtaining expert knowledge
What is an emergent risk?
A risk that can only be recognized after they occur
What are the inputs to plan risk management?
Project charter, project management plan, project documents, EEFs, OPAs
What are the tools and techniques to plan risk management?
Expert judgment, data analysis, meetings
What are the outputs to plan risk management?
Risk management plan
What does RBS stand for?
Risk breakdown structure (categories of risk)
What are the inputs to identify risks?
Project management plan, project documents, agreements, procurement documentation, EEFs, OPAs
What are the tools and techniques to identify risks?
Expert judgment, data gathering, data analysis, interpersonal and team skills, prompt lists, meetings
What does SWAT stand for?
Strengths, weaknesses, opportunities, and threats
What is SWAT used for?
To examine the project from each of its strengths, weaknesses, opportunities, and threats
What are the outputs to identify risks?
Risk register, risk report, project document updates
What are the inputs to perform qualitative risk analysis?
Project management plan, project documents, EEFs, and OPAs
What are the tools and techniques to perform qualitative risk analysis?
Expert judgment, data gathering, data analysis, interpersonal and team skills, risk categorization, data representation, meetings
What are two data representation examples for perform qualitative risk analysis?
Probability and impact matrix, hierarchical charts (i.e the bubble chart)
What is the bubble chart?
Is used when there are three parameters to compare in a graph, the larger the bubble the more impact
What are the ouputs to perform qualitative risk analysis?
Project document updates
Is perform quantitative risk analysis required in every project?
No
What are the inputs to perform quantitative risk analysis?
Project management plan, project documents, EEFs and OPAs
What are the tools and techniques to perform quantitative risk analysis?
Expert judgment, data gathering, interpersonal and team skills, representations of uncertainty, data analysis
What are the outputs to perform quantitative risk analysis?
Project document updates
What are the inputs to plan risk responses?
Project management plan, project documents, EEFs, and OPAs
What are the tools and techniques to plan risk responses?
Expert judgement, data gathering, interpersonal and team skills, strategies for threats, strategies for opportunities, contingent response strategies, strategies for overall project risk, data analysis, decision making
What are the 5 risk plan strategies against threats?
Escalate, avoid, transfer, mitigate, and accept
What is an escalated risk?
A risk outside the control of the project team and managed at the program level
What is an avoided risk?
Involves removing the cause of threat from the project before it can make an impact
What is a transferred risk?
When the risk is transferred to a third party to assume the impact of the risk if it occurs
What is a mitigated risk?
Actions are taken to reduce the probability of occurrence or impact of the threat (i.e. building a prototype before the full size model)
What is an accepted risk?
Existence of risk is acknowledged but no proactive action is taken
What are the 5 risk plan strategies for opportunities?
Escalate, exploit, share, enhance, accept
What is an escalated opportunity?
An opportunity outside the control of the project team and managed at the program level
What is an exploited opportunity?
Used to capture the benefit of the opportunity and ensure its probability of occurrence is 100%
What is a shared opportunity?
When the opportunities ownership is transferred to a third party to share in the impact of the opportunity if it occurs
What is an enhanced opportunity?
Used to increase the probability or impact of its occurrence
What is an accepted opportunity?
Existence of opportunity is acknowledged but no proactive action is taken
What is a contingent response strategy?
Is a response plan that is only executed under certain predefined conditions. It acts as a fall back plan
What are the outputs to plan risk responses?
Change requests, project management plan updates, project document updates
What are the inputs to implement risk responses?
Project management plan, project documents, OPAs
What are the tools and techniques to implement risk responses?
Expert judgment, interpersonal and team skills, PMIS
What are the outputs to implement risk responses?
Change requests, project document updates
What are the inputs to monitor risk?
Project management plan, project documents, work performance data, work performance reports
What are the tools and techniques to monitor risk?
Data analysis, audits, meetings
What are the outputs to monitor risk?
Work performance information, change requests, project management plan updates, project document updates, OPA updates
