Risk an Issue Management Flashcards
What is Risk Management?
The identifying, monitoring and response to a potential obstacle that may arise on a project.
What are the 5 steps of risk management?
- Initiate (the Plan)
- Identification (risk register)
- Analysis (risk reports)
- Response (risk response plan)
- Closure (lessons learned)
Risk Management:
What tasks should be completed during identification phase?
Assumptions and constraints analysis
Brain Storming
Checklists
Prompt Lists
SWOT
Risk Management:
What tasks should be completed during analysis phase?
Probability and impact grid
What are the proactive and reactive responses to risk and opportunity?
Proactive:
- Avoid
- Reduce
- Transfer
- Exploit
- Enhance
- Share
Reactive:
Accept with contingency
Risk Management:
what tasks should be completed during closure?
- Document the information about the risk being closed
- Document lessons learned
List 6 benefits of risk management
- Stakeholders informed and comfortable the risk is managed
- Increases likelihood of sticking to budget.
- Meaningful assessment of justification and contingency.
- Discourages acceptance of unsound projects
- Helps develop ability of staff to identify risk
6.Builds statistics for better risk management in future
What is issue management?
The response to an obstacle or challenge that is already present.
What are the 5 stages of Issue Management
- Identify
- Escalate
- Assign Actions
- Change Control
- Track
What are the barriers to issue management?
- Lack of time
- Reluctances of the team
- Inability of governance board to make decisions.
What are the benefits of issue management?
- Engages members of the PMO
- Can reduce the ongoing costs and time of the project.
What is Contingency Planning?
Resource that is set aside for responding to risks identified
Expressed as time or money, not a hidden extra.
Name the 3 types of contingency
- No specific provision (management reserve)
- Unallocated provision for identified risks (risk Budget)
- Allocated provision for know scope and potential savings.
List 5 differences between Risk and Issue Management
Definition:
Risk has the potential to occur
issue has already happened and is having an impact.
Purpose:
Risk focuses on making all parties aware of things that could affect the successful outcome of a project
Issue focuses ensuring that their impact on the success of a project is minimised.
Process:
Risk uses SWOT, root cause analysis and probabilty grid
Issues the PM will escalate to the sponsor for quick corrective action. Change control process begins
People:
Risk:
Sponsor
Governing Board
Project Team
PM
Suppliers
Issue:
Sponsor
PM
Governing Board
Time:
Risk is set out during the planning phased and defined in the PMP
Issue is monitored throughout the life cycle
