Risk Flashcards
What is the purpose of the Risk theme?
To identify, assess, and control uncertainty and as a result, improve the chance of success.
What is a threat or opportunity?
An uncertain event that could have a negative/positive (respectively) impact on objectives.
Threats and opportunities are measured in probability and impact, and assigned a proximity.
What is risk management?
The systematic application of principles, approaches, and processes to the tasks of identifying and assessing risks, planning and implementing risk responses, and communicating risk management activities to stakeholders.
What are the 4 steps of effective risk management?
- Identify, capture, and describe risks.
- Assess the probability, impact, and proximity of risks.
- Plan appropriate risk responses and assign these to people to action and own.
- Implement, monitor, and control the effect of risk responses.
What is the Risk Management Approach?
- Procedures for identifying and assessing risks.
- Describes how to plan and implement risk responses.
- Determines reporting requirements relating to risk.
- Defines key responsibilities for risk management.
- Defines scales for assessing probability and impact.
This document is approved by the project board and created during IP with the project team and project assurance.
Where is risk information recorded?
In the Risk Register.
What are the three components of a risk?
- Cause - what caused the risk?
- Event - what happens when the risk occurs?
- Effect - what is the outcome of the risk?
What is risk proximity?
A statement describing when the risk is likely to occur.
List some possible risk responses.
Threats:
* Avoid
* Reduce
* Transfer
* Share
* Accept
* Fallback/Contingent Plan
Opportunities
* Exploit
* Enhance
* Transfer
* Share
* Accept/Reject
* Fallback/Contingent Plan
What is risk exposure?
The total number of risks and their impact if they were to happen.
This is evaluated as part of the Assess stage.
What are the two responsibilities relating to implementing risk actions?
Risk Actionee - responsible for implementing risk actions
Risk Owner - responsible for monitoring a risk
What are some examples of risk and response monitoring and communication?
- Team manager updates the project manager via checkpoint reports
- Project manager updates the project board via highlight reports
- Risks are included in the end stage, end project, and lessons reports
What is risk appetite?
Risk appetite refers to an organisations attitude towards risk taking.
What is risk tolerance?
Risk tolerance is represented by a line on the risk matrix graph, where risks that fall outside of the acceptable tolerance must be mitigated.
What is the risk budget?
Risk budget is an allocation from the overall project budget specifically for implementing risk actions or addressing unforeseen risks that arise.
