Risk Flashcards
These are events that trigger the contingency response.
Risk Triggers
This plan will be taken which lists the specific actions that need to occur if an opportunity or threat takes place.
Contingency Plan
Frequently, a response to one risk will create the possibility of a new risk. The discovery of this type of risk may require additional risk response planning, including ensuring that this risk is of lower severity than the primary risk.
Secondary Risk
What is a hierarchical chart that can help you identify and document risk categories?
Risk Breakdown Structure (RBS)
Risk __________ is a general description of the level of risk acceptable to an individual or an organization.
Appetite
When assessing risk, it’s necessary to determine the following:
- The probability that a risk event will occur - how likely
- The range of possible outcomes (impact or amount at stake)
- Expected timing for it to occur in the project life cycle (when)
- The anticipated frequency of risk events from that source (how often)
What are the inputs of Plan Risk Management?
- Project charter
- Project management plan
- Project documents
- EEF’s
- OPA’s
An individual or organization with a very low appetite for the negative impact of threats is called this.
Risk Averse
A project __________ is a facilitated team exercise that aims to identify the possible failure points on a project before they happen, so that threats can be minimized and/or avoided.
Pre-Mortem
Who should be involved in risk identification?
Everyone
What are some examples of risk categories?
- External
- Internal
- Technical
- Commercial
- Unforeseeable
What is an unplanned response developed to deal with the occurence of unanticipated events or problems on a project?
Workaround
What are the (7) processes of Risk Management?
- Plan Risk Management - Planning
- Identify Risks - Planning
- Perform Qualitative Risk Analysis - Planning
- Perform Quantitative Risk Analysis - Planning
- Plan Risk Responses - Planning
- Implement Risk Responses - Executing
- Monitor Risks - M&C
__________ __________ is a matter of checking to see how much reserve remains and how much might be needed.
Reserve Analysis
Through risk management, you increase the probability and impact of __________ on the project (positive events), while decrasing the probability and impact of __________ to the project (negative events).
- Opportunities
- Threats
What are the (3) response strategies for opportunities?
How are they executed?
- Exploit - add work or change the project to make sure the opportunity occurs, this could be on the individual or project risk level.
- Enhance - increase the likelihood (probability) and/or positive impacts of the opportunity occurring.
- Share - allocate ownership or partial ownership of the individual or overall project opportunity to a third party that is best able to achieve the opportunity.
This is a data representation technique used to plot risks in order to sort and rate them to help determine which risks to promote to quantitative risk analysis.
Probability and Impact Matrix
Risks can be classified under two main types:
- Business risk - risk of a gain or loss
- Pure (insurable) risk - only a risk of loss (fire, theft, etc.)
The Identify Risks process results in the creation of this project document.
Risk Register
These types of risks are ones that remain after risk response planning has been completed.
Residual Risks
What is fast failure?
Failing quickly and early before failure becomes more costly.
Risk __________ refers to the specific point at which risk becomes unacceptable.
Threshold
A project manager’s work should focus on __________ problems rather than on deailing with them.
Preventing
These plans are specific actions that will be taken if the contingency plans are not effective.
Fallback Plans
What are (2) risk response strategies for both threats and opportunities?
- Escalate - a threat or opportunity should be escalated if it is outside the scope of the project or beyond the PM’s authority. Any risks that are escalated will typically be managed at the program or portfolio level - not at the project level.
- Accept - passive acceptance means to do nothing. This leaves actions to be determined as needed (workarounds) if the risk occurs. Active acceptance involves creating contingency plans to be implemented if the risk occurs and allocating time and cost reserves to the project.
What are the (3) main risk response strategies for threats?
- Avoid - eliminate the threat by eliminating the cause, such as removing the work package or changing the person assigned to do work. Expanding the SOW on the project is an option also.
- Mitigate - reduce the probability and/or the impact of an individual or overall project threat thereby making it a smaller risk and possibly removing it from the list of top project risks.
- Transfer (deflect, allocate) - make an outside party responsible for the threat by purchasing insurance, warranties, guarantees, or by outsourcing work.
