Risk Flashcards
What is meant by the term Risk Reduction?
Reduce impact or exposure of the risk
What is meant by the term Risk Retention
Risk is too small to work about
What is meant by the term Risk Avoidance?
Abandon project as the threat is too great
What is meant by the term Risk Transfer?
Transfer the risk to any other third party or insurance company
What are the two categories in Risk Management?
Risk Assessment and Risk Control
What are the stages in Risk Assessment?
Identification
Analysis
Prioritisation
What are the stages in Risk Control?
Management Planning
Risk Resolution
Monitoring
What should you focus on when prioritising?
The top 20% of risks
What is the equation for working out exposure?
Exposure = Probability * Impact
What is the definition of Risk?
A threat of negative outcomes or a failure to meet project aims
What is meant by the term Risk-Seeking?
You value each extra dollar more than the last
You want to make more than the expected amount
What is meant by the term Risk-Averse?
You value each additional dollar less than the last
You want what you need and any extra is a bonus