Risk Management Flashcards
What is Risk Management?
Risk management is the process of identifying, assessing, and mitigating potential risks that could impact a project, ensuring its success.
What are the key steps in Risk Management?
- Risk Identification 2. Risk Analysis 3. Risk Evaluation 4. Risk Mitigation and Response Planning 5. Risk Monitoring and Control
What is Risk Identification?
The process of identifying potential risks that could affect the project, including internal and external factors.
What is Risk Analysis?
The process of evaluating identified risks to understand their likelihood and impact on the project.
What is Risk Evaluation?
The step where risks are prioritized based on their severity, and decisions are made on which risks need immediate attention.
What is Risk Mitigation?
The process of developing strategies and actions to reduce or eliminate the impact of risks on a project.
What is Risk Monitoring and Control?
The continuous process of tracking identified risks, monitoring residual risks, and identifying new risks throughout the project lifecycle.
What are the types of risks in software development?
- Technical Risks 2. Business Risks 3. Organizational Risks 4. External Risks 5. Financial Risks
What are Technical Risks?
Risks related to technology, such as software complexity, integration issues, or reliance on new or unproven technologies.
What are Business Risks?
Risks related to market demand, customer satisfaction, or changes in requirements during the project.
What are Organizational Risks?
Risks involving team dynamics, resource availability, skill shortages, or miscommunication among stakeholders.
What are External Risks?
Risks caused by factors outside the project, such as regulatory changes, competition, or economic conditions.
What are Financial Risks?
Risks involving budget overruns, cost estimation errors, or unexpected financial constraints during the project.
Why is Risk Management important?
It helps minimize the likelihood and impact of risks, ensuring smoother project execution and higher chances of success.
What are the benefits of effective Risk Management?
- Improves decision-making 2. Reduces project delays 3. Enhances resource allocation 4. Increases stakeholder confidence
What is a Risk Register?
A risk register is a document that records all identified risks, their assessment, mitigation strategies, and tracking status.
What is the difference between Qualitative and Quantitative Risk Analysis?
Qualitative analysis assesses risks based on subjective criteria like probability and impact, while quantitative analysis uses numerical data to measure risks and their potential impact.
What tools are commonly used for Risk Management?
- Risk Matrix 2. SWOT Analysis 3. Monte Carlo Simulation 4. Risk Register 5. Cause and Effect Diagrams
How does Risk Mitigation differ from Risk Avoidance?
Risk mitigation focuses on reducing the impact or likelihood of risks, while risk avoidance involves eliminating the risk altogether by changing the project plan.
What is the role of communication in Risk Management?
Effective communication ensures all stakeholders are aware of potential risks, mitigation plans, and updates, fostering collaboration and transparency.
What are some common challenges in Risk Management?
- Incomplete risk identification 2. Underestimation of risks 3. Lack of stakeholder involvement 4. Poor tracking and monitoring of risks
How does Risk Management improve project success?
By proactively addressing uncertainties, it minimizes disruptions, aligns resources effectively, and ensures project goals are met on time and within budget.
