Risk Flashcards
What is the purpose of the Risk Theme?
to provide an approach to identify, assess and control uncertainty during a project and as a result, improve the ability of the project to succeed.
Why is there Risk in a project?
As projects are about doing something new, they are about change. Change introduces uncertainty and uncertainty is risk.
When is Risk Management done in the project?
Risk Management is not just done at the start of the project but must be a continual activity during the full life of the project; it therefore is one of the main tasks for the Project Manager.
What is the PRINCE2 definition of Risk?
Risk is a set of events that, should they occur, will have an effect on achieving the project objectives.
What is Risk Management?
Risk Management is about the steps you take in a systematic way that will enable you to identify risk, assess risk and control risk.
What are the three steps to Risk Management?
- Identification: How to identify and describe the risk.
- Assessment: Ask what the likelihood of the risk is, its impact on objectives and when it is expected.
- Control: How best to respond to a risk; assign a risk owner, execute responses and monitoring.
What does MOR stand for?
Management of Risk
What approach does in MOR take?
- First, understand the project context;
- Involve Stakeholders, Users, Suppliers, and Teams.
- Establish an approach for the Project and document this approach
- Provide regular reports on Risk
- Define risk Roles and Responsibilities
What does PRINCE2 recommend for risk?
PRINCE2 recommends that each project have its own Risk Management Strategy document.
What does the Risk Management Strategy document define?
the project procedures for Risk Management, in terms of how Risk will be identified, assessed, controlled and communicated in the project.
What is the purpose of the Risk Register?
The Risk Register captures and maintains the Risk information (both threats and opportunities) of all the risks that were identified and relate to the project.
What are the 5 steps of the Risk Management Procedure?
- Identify
- Assess
- Plan = I Ate Peaches In China
- Implement
- Communicate
What steps are involved within ‘Identify’ in the Risk Management Procedure?
- Identify the context: which is to understand the project from a risk point of view; whether this is a high- or low-risk tolerance project.
- Complete the Risk Management Strategy document.
- Identify the risks using a number of techniques.
- Describe the risks in terms to cause, event and effect.
What techniques does PRINCE2 recommend to help identify risks?
- Review Lessons
- Risk Checklists
- Brainstorming
How does PRINCE2 recommend Risk should be described?
PRINCE2 recommends that we should describe risk in terms of the cause, event and effect.
What are the two steps when assessing Risk?
- Estimating Risk
2. Evaluating Risk
What is ‘Estimating Risk’?
Assessing the probability, the impact, and the proximity for each threat or opportunity.
What is ‘Evaluating Risk’?
To group all the risks together (both threats and opportunities) and get an overall Risk Value for the whole project.
What is the objective of Planning the Responses in terms of Risk?
The objective of planning the responses to risk is to reduce the threats and maximize the opportunities.
What are the 6 responses PRINCE2 recommends for threats in terms of Risk?
- Avoid
- Reduce
- Fallback
- Transfer
- Share
- Accept
What are the 4 responses PRINCE2 recommends for Opportunity in terms of Risk?
- Exploit
- Enhance
- Share
- Reject
What are the two specific Roles that PRINCE2 states exist within the Process ‘Implement the Responses’ in regards to Risk?
The Risk Owner and The Risk Actionee.
What is involved within the role of a Risk Owner?
Responsible for managing & monitoring risks aspects. They can also carry out actions that have been assigned to them.
What is involved within the role of a Risk Actionee?
Someone who is assigned to carry out a particular action and they support the Risk Owner. So they are not responsible for monitoring or managing the risk.
What is involved in the ‘Communicate’ step of the Project Management procedure?
Ensures that the information related to the threats and opportunities faced by the project are communicated within and outside the project to all necessary stakeholders.
What is a Risk Budget?
A sum of money that is put aside just to deal with specific responses to threats or opportunities and it cannot be used for anything else.
What are the Corporate and Program Management responsible for with regard to risk?
Provide the Corporate Risk Management policy and information.
What is the Executive responsible for with regard to risk?
- Accountable for all aspects of the Risk Management.
- Ensure that a Risk Management Strategy exits.
- Ensure that Risks associated with the Business Case are identified, assessed and controlled.
- Escalate Risk to the Corporate or Project Management if necessary.
What is Senior User responsible for with regard to risk?
Ensure that Risks to the Users are identified, assessed and controlled.
What is the Senior Supplier responsible for with regard to risk?
Ensure that risks to the supplier are identified, assessed and controlled.
What is the Project Manager responsible for with regard to risk?
- Create the Risk Management Strategy document.
- Create and maintain the Risk Register.
- Ensure that risks are continually identified, assessed and controlled throughout the project lifecycle.
- Keep the Summary Risk Diagram up to date and communicate to the project stakeholders.
What is the Team Manager responsible for with regard to risk?
Help with the identifying, assessing and controlling risk.
What is the Project Assurance responsible for with regard to risk?
Review the Risk Management practices to make sure they are performed in line with the projects Risk Management Strategy.
What is the Project Support responsible for with regard to risk?
Assist the Project Manager in maintaining the projects Risk Register
