Risk Management

Question 1

What are the differences between a threat and opportunity?

Answer 1

A threat is a risk event that has a negative impact whereas an opportunity has a positive impact.

Question 2

What is the risk management process?

Answer 2

IIARC

Initiate
Identification
Analysis
Response
Closure

Question 3

When do we initiate the risk management process?

Answer 3

During definition stage
Part of Project Management Plan

Question 4

How do you identify risks?

Answer 4

• Speak to practitioners stakeholder workshops - SWOT
• Speak to other project managers - Delphi technique speak to experts
• Look at other risk registers
• Ask consultant
• Research external factors PESTLE
• Questionnaire

Question 5

What does a risk owner do and what does the risk actionee do?

Answer 5

Risk owner monitors and updates the PM. The risk actionee gives the risk to someone else to manage, they are responsible for making the risk response happen.

Question 6

What are the planning strategies for threats?

Answer 6

RARA + treat to avoid it happening again

Question 7

What are the planning strategies for opportunities?

Answer 7

Exploit - make it happen by changing the plan
Enhance - increase probability and/or impact
Share - share contractually. Provides an incentive to the contractor to reduce the costs, saving money for both parties.
Reject - don’t bother - benefit might be too small for the effort involved.
Plan an option - what to do if the project develops in a certain way - increasing the scope to get more benefits

Question 8

What are the benefits of risk management?

Answer 8

• improved plans so more chance of success
• identifies best owners
• develops staff

Question 9

What is an issue?

Answer 9

A problem that is now breaching or is about to breach, delegated tolerances for work on a project. Requires support from the sponsor to agree a resolution.

NOW breaching or is ABOUT to breach delegated TOLERANCES.

Question 10

What are the differences between risks, concerns/problems and issues?

Answer 10

1. A concern/problem is something that the PM can deal with. Whereas an issue is something that requires escalation.
2. A concern/problem and risk is something that doesnt necessarily need to be resolved whereas an issue is something that MUST be resolved

Question 11

What is the issue management process?

Answer 11

Recording - report to PM via form/email
Initial evaluation and escalation - escalate to sponsor
Detailed evaluation - will contact relevant team members to review
Escalation of recommendation - escalate again but with recommendation this time to sponsor/steering group
Monitoring and resolution - monitor progress of decision to resolve

Question 12

What are the differences between risk management and issue management?

Answer 12

1. Risk wouldn’t be escalated to sponsor/steering group - issue would be
2. Issue must be dealt with whereas a risk you don’t necessarily have to do anything
3. Risk is proactive management whereas issue is reactive

Question 13

What are the benefits of a risk management process?

Answer 13

1. Sharing risk with senior leadership not just PM
2. Experts used to develop best solutions
3. Audit trail

Question 14

What are the disadvantages of an issue management process?

Answer 14

1. Escalation at earliest point
2. Delays project
3. Conflict around what an issue is

Question 15

What is quality planning?

Answer 15

Establishes objectives and requirements for quality and lays out the activities for the application of the system.
Forms part of the project management plan

Question 16

What is the difference between quality control and quality assurance?

Answer 16

Quality assurance are trained personnel and are independent from the project to check processes - fresh set of eyes whereas quality control can be internal staff and therefore not independent.

Quality assurance is about prevention and is proactive (HMIC) whereas quality control is reactive testing after a product has been made to check it meets criteria like dip checks.

Quality assurance is about processes whereas quality control is about product testing.

Question 17

What goes into a quality management plan?

Answer 17

Timing
Methods
Standards
Tools & techniques
Define what is fit for purpose