Risk Flashcards
Risk categories
A way to group individual project risks for the project team, to ensure we consider the full range of sources of risk.
Where are risk categories described?
The risk management plan
PESTEL
Political, economic, social, technological, environmental, and legal
TECOP
Technical, environmental, commercial, operational, and political
VUCA
Volatility, uncertainty, complexity, ambiguity
Risk breakdown structure
A hierarchical representation of potential sources of risk.
Risk categorization framework
A simple list of categories.
List of identified risks
Each project risk has a unique identifier.
Risk owner
This person is accountable for the risk and its outcome.
Risk responses
The controls, mitigations, or other responses.
Probability and impact matrix
Grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs. Giving a rating helps prioritize the risks. (numbers or words like very high, high, etc.)
Decision tree
Used to support the selection of the best of several alternative courses of action.
Monte Carlo simulation
Calculates thousands of different outcomes (end date or end budgets) using various activity assumptions, constraints, risks, issues, and other scenarios to give a probability distribution of the outcomes.
Sensitivity analysis and tornado charts
Helps determine which individual project risks could have the most impact on project outcomes.
Strategies for opportunities
When an opportunity is outside the scope of the project or would exceed the project manager’s authority to take advantage of it, it is managed at the program level or above. (Escalate, exploit, share, enhance, or accept)
Strategies for threats
When the risk or its response is outside the project manager’s authority, or it’s appropriate to escalate to a higher level that is affected by the risk. (Escalate, avoid, transfer, mitigate, or accept)
Reserve analysis
Compares the remaining contingency reserves to the amount of risk remaining at any time in the project to determine if the remaining reserve is adequate. One way to represent this is with a burndown chat, showing the total risk with the remaining contingency reserve amount. (burndown chart)
