Risk Flashcards
Non event based risk
the known uncertainty that one aspect of a planned situation could change.
Two types, Variability risk & Ambiguity risk.
Variability Risk : We did everything perfectly we could. Still, Uncertainty about some characteristics of planned events exists. Something will happen for sure, range of the outcome is also known, What exactly it might be, is uncertain.
Ambiguity Risk : Risk arising because of lack of knowledge, i.e; we ourselves keep a possibility for risk since we dont know things.
SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT analysis is a technique for assessing these four aspects of your business. SWOT Analysis is a tool that can help you to analyze what your company does best now, and to devise a successful strategy for the future.
Monte-Carlo analysis
a risk management technique, which project managers use to estimate the impacts of various risks on the project cost and project timeline
Variability risk
come from the unknown variables of managing a project. Like event risks, they affect the project’s objectives. Another way to think of variability risk is the difference between project expectations and reality. Impact: Variability risk could lead to wrong or bad decisions.
Examples:
Productivity may be above or below target.
The number of errors found during testing may be higher or lower than expected.
Unseasonal weather conditions may occur during construction phase.
Exchange rates could vary beyond the range used to build our quotation.
Ambiguity risk
uncertainties that might happen as the project unfolds. Event and variability risks are things you can try to predict at the beginning of a project. But ambiguity risks come up after the project gets going. This type of risk comes from an unforeseen circumstance.
Examples:
Complexities within the project that might cause problems in the future.
Needing a crucial part and not knowing you needed it.
Using new technology that you’ll have to troubleshoot.
Risk appetite
Risk appetite is the level of risk that an organization is prepared to accept in pursuit of its objectives, before action is deemed necessary to reduce the risk. It represents a balance between the potential benefits of innovation and the threats, that change inevitably brings.
Risk tolerance
the acceptance of the outcomes of a risk should they occur, and having the right resources and controls in place to absorb or “tolerate” the given risk,
Project resilience
the capability of a project to respond to, prepare for and reduce the impact of disruption caused by the drifting environment and project complexity.
Risk breakdown structure
hierarchical chart that precisely breaks down the risks of a project, starting with high-level categories and moving down to sub-levels of risk. It presents written documentation of all risks in a structured manner.
Risk data quality assessment
The risk data quality assessment is a project management technique that is used to evaluate the level or degree to which data about risks is necessary for risk management. This technique also involves analyzing the dress which the risk is understood. It also looks into the accuracy, reliability, quality and integrity of the data concerning the risk.
Escalate risk
Occurs when a particular threshold is reached, either based on a time frame or some other risk condition, thus requiring a higher level of attention. For example, a risk that has remained through more than two fiscal periods without adequate treatment might be flagged for additional scrutiny.
Bubble chart
Shows probability, impact, and the overall likelihood of a risk occurring
