Risk Management

Question 1

Typically, what are the column headings of a Risk Register?

Answer 1

· Risk ID
· Risk description
· Cause description
· Consequence description
· Mitigation strategy
· Risk Category
· Risk owner
· Likelihood of occurrence (scored between 1 – 5)
· Impact of occurrence (scored between 1 – 5)
· Risk rating (Likelihood multiplied by Impact)
· Resolution date
· Comments

Question 2

Talk me through the risk management process on one of your projects.

Answer 2

· Four key steps to risk management:
1.) Identify
2.) Analyse
3.) Risk management strategy } Risk response
4.) Monitor and control

Question 3

How can project contingency be calculated?

Answer 3

· Traditional percentages
· Expected monetary value [assessing individual risks]
· Monte Carlo simulation
· Central limit theorem

Question 4

What are the risk management / response strategies?

Answer 4

Avoidance
Reduction
Sharing
Retention / Acceptance

Question 6

What is the monte carlo simulation?

Answer 6

Probabilistic risk analysis meaning it assesses the probably of achieving certain targets.

It uses random sampling to assess variables that change simultaneously.

The team input Optimistic, likely and pessimistic.

The simulation is run 1000 times to ensure no bias occurs