Risk analysis and management. Flashcards
What is the definition of Risk analysis and management?
Risk analysis and management is a process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities.
What is a risk?
The potential of an action or event to impact on the achievement of a specific objective.
What is the risk management process?
-Initiate.
-Identification.
-Analysis.
-Response.
-Closure.
What happens during INITIATE?
-The scope and objectives of risk management are defined.
-Risk management plan is written.
What is in a risk management plan?
-Project description.
-Purpose and scope of risk management.
-Risk management responsibilities.
-Risk management process.
-Tools and techniques.
-Scales to be used for Probability & Impact grid.
-Annexes: Risk categories, copy of risk register.
What happens during IDENTIFICATION?
-Key risk events are identified.
-Consider both threats and opportunities.
-Output is a Risk Log (or register).
Should be many iterations of this step. Risk owners should be identified with risks.
What are some techniques to identify risks?
-Assumptions and Constraints analysis.
-Check lists.
-Prompt lists.
-Brainstorming.
-Interviews.
What does assumptions analysis do?
-Questions what may have been taken as fact.
-Useful when identifying threats.
What does constraints analysis do?
-Investigates the stability of a perceived constraint.
-Useful for identifying opportunities.
What is a checklist? (Risk)
-An encapsulation of lessons learned from other projects.
What is a prompt list? (Risk)
-Aide-memoire for risks.
-Helps to focus and cover off key areas where risk is found.
Describe brainstorming? (Risk) Advantages/Disadvantages?
-Captures risks quickly
-Can be used to engage stakeholders in the risk management process.
-Works best with an external facilitator.
-Gets diverse range of perspectives.
-Can be constrained by social issues (peer pressure, power gradient etc),
Why would Interviews be used? (Risk)
-Used when it is not practical to commit a whole team to a risk identification workshop.
-Useful for people who are reluctant to air risks in a public forum.
-Uses a facilitator to conduct the interviews.
Describe a Probability Impact Grid.
-Once a risk is identified the PM, risk owner, and Risk Manager (if there is one) assess the risks against likelihood and impact.
-Impact usually assessed against more than one element. (Reputation, Cost, Safety etc).
What are the RESPONSES to threats?
Proactive:
-Avoid.
-Reduce (Probability and/or Impact).
-Transfer.
-Share.
-Plan fallback.
Reactive:
-Accept.
