Risk Management Flashcards
Uncertain event or condition that has an impact on your project objectives if it occurs; Something that can delay, halt, or harm your project
Risk
What are the 3 steps in the Risk Management Process?
Identify Risks
Analyze Risks
Mitigate Risks
What are the 3 types of Risk Attitudes?
Risk Seeker
Risk Averse
Risk Neutral
The general level of risk a stakeholder will accept to achieve a goal; Willingness of an organization to accept or avoid risk
Risk Appetite
an acceptable variance around the risk determined by willingness and capacity to withstand the risk once it occurs
Risk Tolerance
a set limit beyond which your organization will not accept the risk; Risk Tolerance is reached
Risk Threshold
What are the 3 activities involved in analyzing Risks?
1.) Understand Risks
2.) Perform Impact Assessment
3.) Prioritize Risks
What are some Risk Analysis Tools?
*Qualitative Analysis
*Cause-and-Effect Diagram (aka Ishikawa, Fishbone)Root Cause Analysis related to a risk
*Pareto chart
*C&E Matrix and Failure Mode Effects Analysis (FMEA)
a structured approach to…
*Predict failures and prevent their occurrence
*Identify the ways in which a process can fail to meet customer requirements
*Estimate the Severity, Occurrence, and Detection (SOD) of defects
*Evaluate the current Control Plan for preventing these failures from occurring and escaping to the customer
*Prioritize the actions that should be taken to improve and control the process using a Risk Priority Number (RPN)
Failure Modes Effect Analysis (FMEA)
What are the 3 activities of Mitigating Risks?
Create Risk Response Plan per Risk
Monitor & Control project for risks; execute risk response plans
Document & Communicate risk responses and outcomes
What are the 5 types of Risk Response Strategies?
(TAAME)
Avoid
Transfer
Mitigate
Accept
Escalate
What are the 3 pieces of a Risk Response Plan?
Risk Scenario
Risk Response Strategy
Responsible Person
What are some challenges to Risk Management?
Culture doesn’t want to see risk
Lack of Accountability for Risk Responses
Adequate time for risk planning
All of the following are Risk Response Strategies except…
a.) Avoid
b.) Escalate
c.) Transfer
d.) Manage
e.) Mitigate
f.) Accept
d.) Manage
You are leading a process improvement initiative. During implementation, the project is put on hold due to legislative requirements. This risk had been identified during initial planning and placed on the risk register.
What should you do next?
a.) Analyze the impact of the risk on the project objectives
b.) Implement the associated risk response plan
c.) Interview stakeholders to assess their level of risk tolerance
d.) Terminate the project since another priority has appeared
b.) Implement the associated risk response plan
