Risk Management

Question 1

Emergent Risks

Answer 1

Require project resilience. The right level of budget and contingency, flexibility, ability to respond because processes aren’t so structured and tight.

Question 2

Awareness of unknowable unknowns, risks that can only be identified after occurrence

Answer 2

Project Resilience

Question 3

Uncertain, impossible to predict, future laws or regulations

Answer 3

Ambiguity Risks

Question 4

How sensitive the organization or the project stakeholders are to risks, their willingness to accept or avoid risk

Answer 4

Stakeholder Tolerance

Question 5

A project management tool to measure the degree of uncertainty and the level of impact which a stakeholder or organization may have interest

Answer 5

Risk Threshold

Question 6

Level of tolerance for risk in a project

Answer 6

Risk Tolerance

Question 7

How hungry is an organization for risk, seen as an opportunity, want to take on risk

Answer 7

Risk Appetite

Question 8

Assumption Analysis

Answer 8

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.

Question 9

11 Risk Identification Inputs

Answer 9

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)

Question 10

Hiring a subcontractor to avoid a risk but introducing new smaller risks that you have to live with

Answer 10

Residual risk

Question 11

Like a domino from one risk to another

Answer 11

Secondary Risk

Question 12

Describes a person’s willingness to tolerate risk

Answer 12

Utility Function

Question 13

Documents all the outcomes of the other risk management processes

Answer 13

Risk Register

Question 14

An anonymous poll allowing experts to submit their opinion freely without fear of backlash

Answer 14

Delphi Technique

Question 15

A table of risks, their probability, and their impact equating to a risk score

Answer 15

Probability and Impact Matrix

Question 16

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.

Answer 16

Monte Carlo Analysis

Question 17

Identify the probability and impact on a numerical value from .01 (very low) to 1.0 (certain)

Answer 17

Cardinal Scale

Question 18

Identify and rank the risks as very high to very unlikely

Answer 18

Ordinal Scale

Question 19

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.

Answer 19

Sensitivity Analysis

Question 20

Involves visually outlining the potential outcomes, costs, and consequences of a complex decision

Answer 20

Decision Tree Analysis

Question 21

A graphical representation of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes

Answer 21

Influence Diagram

Question 22

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

Answer 22

Escalate

Question 23

Changing your plans so a risk couldn’t possibly happen

Answer 23

Avoid

Question 24

Passing over risk to another party to manage and the example typically given is insurance

Answer 24

Transfer

Question 25

Reducing the impact and likelihood or a risk so that if it does happen it’s easier to manage the situation

Answer 25

Mitigate