Risk Management

Question 1

What are the two types of risk? Identify and define.

Answer 1

Negative (Threats)

Positive (Opportunities)

Question 2

What are Known-unknownn Risks and Unknown-unknown Risks

Answer 2

• Known-unknown: those that you or stakeholders can identify from experience and understanding the project, and lessons learned from the past.
• Unknown-unknown: extreme and unpredictable events tat occur without having identified

Question 3

What are the two characteristics of risk?

Answer 3

• Probability (the likeliness of it happening)

* Impact (the consequences, positive or negative)

Question 4

What are common risk sources?

Answer 4

• Contractual and legal (know responsibilities and get agreements in writing)
•Customer Relations
• Environmental Factors (weather, political climate, economy)
• Funding and budget:
- Funding may get cut or dry up
- Budget may need modification
- Financial backers may change their mind
• Physical and Safety (plan for safety risks and check regulations)
• Political (Get Stakeholders and Sponsors support and keep them informed at all times)
• Project Size or Complexity (Watch for Scope Creep)

Question 5

Name four areas of “Buy In”

Answer 5

• Is the need agreed on?
• Does the Sponsor control the Stakeholder group?
• Are negative Stakeholders influential?
• Is communication with Stakeholders good?

Question 6

Name four questions to ask to to minimize Staff Risk

Answer 6

• Are they available?
• Are they committed?
• Are they skilled?
• Do they know what’s required of them?

Question 7

Name four questions to ask to minimize Technology and Equipment Risk

Answer 7

• Is sufficient expertise available in-house?
• Is it reliable?
• Is it available?
• Is it understood?

Question 8

How can you minimize Time and Schedule Risk?

Answer 8

• Keep the project plan up to date.

Question 9

Name three ways to plan for Risk

Answer 9

• Identify potential problems and address them before they occur. Proactive over reactive.
• Focus on the objectives, look for things that may affect quality throughout the life-cycle.
• Identify potential problems early in planning

Question 10

What Information may be included in the Risk Register?

Answer 10

• When?
- At what point in the schedule will the event occur?
- What are the triggers?
- What should the response accomplish?
• Who?
- Who is the Risk Owner?
- What other resources might they need?
- What are communication requirements?
• What?
- What is the impact on objectives?
- What is the planned response?
- What is the expected outcome after the response?
- Which objectives are affected?
- What other risks might this event create (secondary risks)
• Where
- Is there a significant geographic component to the uncertainty?
• Is it tied to a particular location?