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Dabdoub 415 > Risk Management > Flashcards

Risk Management Flashcards

1
Q

an uncertain event that may affect the project’s triple constraint (Scope, Time, Cost)
It can be a threat to be avoided (negative event)
It can be an opportunity to be exploited (positive event)
It can be internal to the organization or arising from external factors beyond the control of the organization
It can be limited to certain activities or general to the project

A

Risk

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2
Q

must understand how to anticipate and identify areas of risk, how to quantify and qualify them, and how to plan for them

A

The PM

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3
Q

PM objective is to increase the probability and impact of ________ and decrease the probability and impact of events adverse to the project

A

positive events

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4
Q

The three elements of risk

A
  1. The perception that something could happen
  2. The likelihood or probability of something happening
  3. The consequences if it happens (Impact)
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5
Q

Risk equation

A

Probabilty x Impact

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6
Q

A condition or situation unfavorable to the project or any of its deliverables.
A set of circumstances or events of negative impact on the project objectives.

A

Threat

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7
Q

A condition or situation favorable to the project or any of its deliverables.
A set of circumstances or events of positive impact on the project objectives.

A

Opportunity

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8
Q

The process of identifying, allocating, quantifying, analyzing, and responding to the risk (opportunity or threat) in order to maximize (in case of opportunity) or minimize (in case of threat) its probability and impact.

A

Risk management

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9
Q

“Though the decline in failure rate is consistent across the board, Transportation and Construction remain the worst industries with failure rates ________ higher than the U.S. average.”

A

60% to 80%

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10
Q

Cost of wrong decisions in pharmaceutical industry is passed to ________.

A

consumers

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11
Q

Dry hole cost in oil and gas industry is passed to ________.

A

motorists

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12
Q

Wrong policy decisions by government will be passed to __________.

A

taxpayers

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13
Q

You paint your deck without properly removing old paint.

A

You have to paint it again next year

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14
Q

Choose to leave ropes behind to move quick on a glacier and you may not EVER

A

leave the glacier

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15
Q

Insufficient Knowledge – 36%
Underestimation of influence – 16%
Ignorance, carelessness, neglect – 14%
Forgetfulness – 13%
Relying upon others without sufficient control – 9%
Objectively unknown situation – 7%
Other factors related to human error – 5%

A

Human error factors

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16
Q

A study by Swiss Federal Institute of Technology in Zurich analyzed ___ cases of structural failures where engineers were at fault. In these incidents 504 people were killed, 592 injured and millions of dollars of damage incurred.

A

800

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17
Q
  1. Risk Management Planning
  2. Risk Identification
  3. Qualitative Risk Analysis
  4. Quantitative Risk Analysis
  5. Risk Response Planning
  6. Risk Monitoring and Control
A

6 steps of risk management

18
Q

The Risk Management Plan describes:

A
  1. How risks are defines
  2. How risks will be monitored
  3. How the risks will be controlled throughout the project
19
Q

Risk Inputs

A
  1. Brainstorming
  2. Delphi Technique
  3. Nominal Group Technique
  4. Interviewing
  5. Checklists
  6. Assumption Analysis
  7. Diagramming Techniques
20
Q

most common, all in a room at the same time

A

Brainstorming

21
Q

similar to brainstorming but generally not in the same room and often anonymously

A

Delphi Technique

22
Q

cross between brainstorming and Delphi, participants in the same room but use a medium such as post-it notes

A

Nominal Group Technique

23
Q

Q&A with participants and even other PM’s with previous experience

A

Interviewing

24
Q

based on historical information

A

Checklists

25
Q

generally used as a starting place for the other techniques

A

Assumption Analysis

26
Q

Cause & Effect (or fishbone) diagrams are very useful

A

Diagramming Techniques

27
Q

Determining what impact the identified risks will have on the project and the probability they will occur.

A

Qualitative Risk Analysis

28
Q

is concerned with the reliability of the data used to identify and describe risks and the level of understand regarding their consequences.

A

Data Precision

29
Q

hard to detect, possible to mitigate by training

A

cognitive

30
Q

easy to detect, hard to mitigate negative effect

A

Motivational

31
Q

A discrepancy between somebody’s judgement and reality.

A

Bias

32
Q

Are you motivated to see the project in a particular way?

What do you expect from this particular decision?

Would you be able to see project differently without these expectations and motivational factors?

A

Selective Perception

33
Q

Qualitative risk analysis

A
  1. Risk probability analysis
  2. Project assumption testing
  3. Data precision testing
  4. Risk ranking
34
Q

Risk probability testing

A

Risk Probability and Impact
Probability/Impact Risk Rating Matrix
Risk Impacts
Probability/Impact Matrix

35
Q

Risk ranking

A

Overall Risk Ranking for the Project
List of Prioritized Risks
List of Risks for Additional Analysis and Management

36
Q

PIM

A

Probability and Impact matrix

37
Q

Based on the qualitative risk analysis, the _______ will be updated to include information on:
Relative ranking and priority of project risks
Risks grouped by categories
Risk causes or project areas requiring particular attention
List of risks requiring response in the near term (urgency)
List of additional analysis and response
Watch lists of low-priority risks
Trends in qualitative risk analysis results

A

Risk register

38
Q
  1. Assigning numeric probabilities to each risk
  2. Calculate the impact the risk has on the overall project to determine which risks you need to pay the most attention to
A

Quantitative Risk Analysis

39
Q
  1. Describes a decision under consideration and implications (cost and rewards) of choosing each of the alternatives.
  2. Calculating the EV (Expected Value) for each decision outcome.
  3. Graphical means of displaying all available options, their probability, and their impact, to reach the final project objective.
  4. Forces consideration of the probability of each outcome.
A

Decision tree

40
Q

Generally develop a Response plan only to the risks that BOTH are most likely to occur AND

A

will have a significant impact on the project

41
Q 
Avoidance
Transference
Mitigation
Acceptance
Contingency Planning
A

Risk Response Planning

42
Q

Risk Response Plan
Residual Risks
Secondary Risks

A

Risk response planning outputs

Dabdoub 415 (5 decks)

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