Risk Management Flashcards
What is a risk?
An uncertain event that could have a programme or cost impact
What is risk management?
A process of identifying, assessing and responding to risks
What is a risk event?
An event that can be predicted to at least some degree, based on past experience or data
Why is risk management needed on a project?
Projects are complex, with different time, cost, and quality targets that need to be met.
It increases the likelihood of hitting said targets
What are the stages of risk management?
Identify
Analyse
Respond
Monitor
What is risk allocation?
Decided in the contract about who would be responsible for different risk items
How should risk be allocated?
It should be assigned to those best able to manage it
What are the methods of dealing with risk?
Reduce/Mitigate it
Avoid it
Transfer it
Monitor it (unable to do anything)
What are the typical headings in a risk register?
- Description
- Owner
- Probability of occurrence
- Likely cost impact
- Likely time impact
- Risk factor (likelihood x impact)
- Actions required
- Status
- Lessons learnt
In risk assessment, what is ‘percentage addition’?
A simple method of risk quantification where a percentage is added to the end of an estimate
In risk assessment, what is ‘simple method of assessment’
A risk register is compiled with each item given a cost impact, and a percentage likelihood. These are all summed and added to provide a risk allowance
In risk assessment, what is ‘probabilistic method’?
Each risk is given a heading of ‘best’; ‘likeliest’; ‘worst’, with a given percentage (all adding to 100%)
Each heading is given a cost impact.
These are then summed and added
In risk assessment, what is ‘Monte Carlo simulation’?
Using certain parameters, simulations are run to see what the best, worst, and most likely impact of a risk would be
What is EMV?
Expected Monetary Value
The likelihood of a risk times by the cost
When should risk workshops occur?
Where necessary but between stages is a good starting point
