Risk Management Flashcards
Emergent Risks
Require project resilience. The right level of budget and contingency, flexibility, ability to respond because processes aren’t so structured and tight.
Awareness of unknowable unknowns, risks that can only be identified after occurrence
Project Resilience
Uncertain, impossible to predict, future laws or regulations
Ambiguity Risks
How sensitive the organization or the project stakeholders are to risks, their willingness to accept or avoid risk
Stakeholder Tolerance
A project management tool to measure the degree of uncertainty and the level of impact which a stakeholder or organization may have interest
Risk Threshold
Level of tolerance for risk in a project
Risk Tolerance
How hungry is an organization for risk, seen as an opportunity, want to take on risk
Risk Appetite
Assumption Analysis
Explores the validity of assumptions and constraints to determine which pose a risk to the project. Threats may be identified from the inaccuracy, instability, inconsistency, or incompleteness of assumptions.
11 Risk Identification Inputs
risk management plan
activity cost estimates
activity duration estimates
scope baseline
stakeholder register
cost management plan
schedule management plan
quality management
enterprise environmental factors
organizational process assets
project documentation (can include the assumptions log, performance reports, the results of earned value, and other supporting detail for the project planning)
Hiring a subcontractor to avoid a risk but introducing new smaller risks that you have to live with
Residual risk
Like a domino from one risk to another
Secondary Risk
Describes a person’s willingness to tolerate risk
Utility Function
Documents all the outcomes of the other risk management processes
Risk Register
An anonymous poll allowing experts to submit their opinion freely without fear of backlash
Delphi Technique
A table of risks, their probability, and their impact equating to a risk score
Probability and Impact Matrix
A mathematical technique that predicts possible outcomes of an uncertain event. Computer programs use this method to analyze past data and predict a range of future outcomes based on a choice of action.
Monte Carlo Analysis
Identify the probability and impact on a numerical value from .01 (very low) to 1.0 (certain)
Cardinal Scale
Identify and rank the risks as very high to very unlikely
Ordinal Scale
A holistic evaluation of how likely it is that a project will succeed through data-driven forecasting. It also identifies risks, quantifies their impact, and separates high-risk tasks from low ones.
Sensitivity Analysis
Involves visually outlining the potential outcomes, costs, and consequences of a complex decision
Decision Tree Analysis
A graphical representation of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes
Influence Diagram
Passing the risk up to someone else to deal with, because the team and/or the project sponsor believe it’s something that is outside of the scope of the project
Escalate
Changing your plans so a risk couldn’t possibly happen
Avoid
Passing over risk to another party to manage and the example typically given is insurance
Transfer
Reducing the impact and likelihood or a risk so that if it does happen it’s easier to manage the situation
Mitigate
