Risk Flashcards
What is the process of risk management?
Plan risk management ID risks Perform qualitative risk analysis Perform quantitative risk analysis Plan risk responses Monitor and control risks
What is a key output of the Plan Risk Management process?
risk management plan
What is a key output of the ID risks process?
risk register
What key outputs of the Perform Qualitative Risk Analysis process are added to the risk register?
Risk ranking for the project
Prioritized risks and their probability and impact ratings
Risks grouped by category
List of risks requiring additional analysis and response
Watch list
What key outputs of the Perform Quantitative Risk Analysis process are added to the risk register?`
Prioritized list of quantified risks
Possible reslist and acheivalbe completion dates and project costs
Quantified probability of meeting project objectives
What are key outpits of the Plan Risk Response process?
Risk register updates:
- residual risk
- contingency plans
- risk response owners
- secondary risks
- triggers
- fallback plans
- reserves for time and cost
Updates to the project management plan and project docs.
What are key outputs of the Monitor and Control Risks process?
Risk register updates:
- outcomes of risk reassessments and risk audits
- updates to the risk register
- closing of risks that are no longer applicable
- details of what happened when risks occured
- lessons learned
- change requests
Updates to the project management plan and project docs.
What is a risk?
An occurance that affect a project for better (oppourtunity) or worse (threat).
Describe key things one needs to determine about each risk?
Probability
Impact
Timing
Frequency
Someone who is risk averse is:
Unwilling to take risks
What is risk tolerance?
The areas of risk that are acceptable
Name the inputs to the risk management process?
Project background info historical records from previous projects OPAs Project charter Project scope statement Team WBS network Diagram Staffing management plan Procurement management plan
What are risk catagories?
Lists of common sources of risk, including:
- Technical
- Project management
- Schedule
- Cost
- Quality
- Scope
- Resources
- Customer Satisfaction
- Others
What are risk identification techniques?
documentation reviews brainstorming delphi technique root cuase analysis interviewing SWOT checklist analysis assumptions analysis diagramming techniques
What are types of risks?
Business - Pure
Known (issues/benefits)
- A known is an item or situation containing no uncertainty
- Contengncy reserve
Known – unknown (threats & oppourtunities)
- Possible outcomes – unknown whether or not they will be realized
- Management reserve
- This is what you spend most of your time worrying about
Unknown-unknown
- Items not fathomable – i.e. its never happened before (i.e. 9/11)
What are risk triggers?
Early warnings signs that a risk event has occured or is about to occur
What is assumptions analysis? When is it completed?
Exploring the validity of project assumptions. Completed during the ID risks process
What is risk data quality assessment? When is it done?
Determining how well understood is the risk info
A method to test reliability of risk and info collected
It is done rugint the Perform Qualitative RA process
What is a probability and impact matrix?
The company’s scale used to determine which risks continue through the risk management process.
What is the formula for expected monetary value?
Probabilty x’s impact
What is a decision tree?
A model of a decision to be made which includes the probabilities and impacts of future events.
Who is a risk response owner?
The person assigned to execute risk responses for each cricitical risk
Name and define the risk response strategies for threats.
Avoid: elimitate a specific threat by eliminating the cause.
Mitigate: Reduce the probability or impact of a threat.
Accept:
- Passive acceptance: Do nothing, if it happens, it happens
- Active acceptance: develop contingency plans
Transfer: Make another party responsbile for a risk, may include outsourcing, insurance, warranties, bonds, and guarantees.
Name and define the risk response strategies for oppourtunities.
Exploit: Make sure the oppourtunity occurs
Share: Allocate ownershiip to a 3rd party
Enhance: Increase probability or impacts
Accept:
- Passive acceptance: Do nothing, if it happens, it happens
- Active acceptance: develop contingency plans
