Risk Flashcards
What two characteristics of risk are especially important?
- risk is related to an uncertain event
* risks may be positive or negative (O/T)
What happens in Plan Risk Management?
The other 5 risk mgmt processes are planned
In what process groups are the risk-related processes?
- Planning
* M/C (Control Risk)
In what process groups are risks considered?
ALL but Closing
What is a risk event?
something identified in advance that may or may not happen
What are four important risk factors?
- probability that a risk event will occur (how likely)
- range of possible outcomes (impact)
- expected timing in lifecycle (when)
- anticipated frequency of events from a source (how often)
Explain the difference between risk appetite, tolerance, and threshold?
- appetite: general, high-level
- tolerance: measurable amount of acceptable risk
- threshold: cannot accept beyond it
What are the 3 most common risks?
Duration, complexity, and newness
What are 3 aspects of quantitative risk analysis ?
explore highest rated risks
perform sensitivity analysis to determine which risks may have greatest impact
determine how much quantified risk a project has (expected monetaryvalue analysis or Monte Carlo simulation).
What are residual risks?
those left after planning
What is a risk trigger?
Event that activate a contingent response
At what level of the WBS are risks identified?
Work package
Contingency reserves are for identified risks remaining after Plan Risk Responses
Mgmt reserves are for unforeseen risks, and are not part of the schedule baseline
risk appetite = uncertainty
risk tolerance = degree, amt, or volume can withstand
ttt
