Project Risk Management Flashcards
Risk
an uncertain event or condition that if it occurs has a positive or negative effect on one or more project objectives; threats or opportunities; increase positive risks and decrease negative ones; unknowns of the project
overall project risk
term used to describe the effect of uncertainty on the project as a whole
Project Risk Tailoring Considerations (4)
- project size
- project complexity
- project importance
- development approach
Project Risk Trends and Emerging Practices (3)
- non-event risks
- project resilience
- integrated risk management
Plan Risk Management
defining how to conduct risk management activities for a project; match risk with importance; may be necessary to revisit
Risk Management Plan
part of PMP that describes how risk management activities will be structured and performed; risk strategy, methodology, funding, timing, reporting, tracking, probability and impact matrices, stakeholder appetite
Identify Risks
interactive process of identifying individual project risks as well as sources of overall project risk and documenting characteristics; involve project team
SWOT analysis
examines the project from each of the strengths, weaknesses, opportunities, and threats perspectives
Perform Qualitative Risk Analysis
prioritizes individual project risk so they can be analyzed further for probability of occurrence and impact; focuses on high priority risks; risk perception among team/stakeholders; identifies risk owner to plan risk analysis; PM to assign value of each risk and calculate ranking
Perform Quantitative Risk Analysis
quantifies overall project risk exposure, in terms of time, cost, resources and can provide additional quantitative information to support response planning; high-quality data on individual risks; specialized software and expert in data analysis
simulations
used to model the combined effects of individual project risks to evaluate their potential impact on achieving project objectives
histogram
shows frequency of a particular simulation outcome
Cumulative Probability Distribution (S-Curve)
shows the probability of achieving any particular outcome
sensitivity analysis
helps determine which individual project risks could have most impact on project outcomes
tornado diagram
presents calculated correlation coefficient for each element of the quantitative risk analysis model that can influence the project outcome; items ordered by descending strength of correlation giving tornado appearance
decision tree analysis
diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty; used to support selection of best of several alternate actions; calculate Expected Monetary Value (EMV) of each branch
influence diagram
represents project as a set of entities, outcomes. and influences with their relationships and effects
risk report
project document that will be updated to reflect results of risk analysis; assessment of overall project risk; chances of project success; degree of variability
Plan Risk Response
identifies ways to address overall and individual project risks; allocates resources and inserts activities into project documents and PMP as needed; minimize threats and maximize opportunities; reduce overall project risk
Strategies for Threats (5)
- escalate
- avoid
- transfer
- mitigate
- accept
Strategies for Opportunities (5)
- escalate
- exploit
- share
- enhance
- accept
contingent response strategies
response plan only executed under certain predefined conditions
Implement Risk Responses
ensures that agreed-upon risk responses are executed as planned; communicate risk management status and responses to stakeholders; change control should address risks with proposed changes
Monitor Risks
enables project decisions to be based on information about overall project risk and individual project risks; tracking identified risks; identifying and analyzing new risks; evaluate throughout
