Risk Management L1 Flashcards

1
Q

What is a Risk?

A

The chance of exposure to the adverse consequences of future events. (Prince2)
- Possible future problems, not current

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2
Q

Negative Risk:

A

Involved understanding potential problems that might occur in the project and how they might impede project success.

e.g. Key staff are ill at critical times

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3
Q

Positive Risk

A
  • Positive risks can result in good things happening, called opportunities
  • Positive risk management is an investment
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4
Q

Why is risk planning not used?

A
  • Lack of awareness of the approach
    -Unwillingness to spend additional time an resources on risk management.

-Development manager may wany projects to go ahead and do not want project spnsors to be dettered by considering possible failures

-If success ful, you might not experience a benefit in spite of there being a cost associated

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5
Q

Categories of Risk( Actors)

A

Actors include all those who are involved in the project, - developers, users managers. etc

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6
Q

Categories of Risk( Technology)

A
  • Technology relates to development tools and techniques used to implement the project and to technology embedded in project deliverables
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7
Q

Categories of Risk(Tasks)

A
  • Represents work to be carried out
    -A typical Risk is that the amount of effort needed to carry out the task is underestimated, so work is not completed by the deadline
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8
Q

Categories of Risk( Structure)

A

Structure covers management Procedures

e.g. a group assigned a project task is not informed of the assignment because it is not part of the project communication network, so task completion is delayed

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9
Q

Risk Management Framework

A

Risk Identification - wjat risks might we find
-Risk Analysis and Prioritisation: which are the most serious risks?
- Risk Planning- what are you going to do about them?
-Risk Monitoring- what is the current state of the risk?

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10
Q

what is a Framework?

A

a structure that gets us started

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11
Q

what is Risk Identification?

A
  • Failure to keep within the cost estimate
    -Failure to achieve the required completion date
  • failure to achieve required Quality and operational Requirements
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12
Q

Quantitative Risk Analysis

A
  • Numeric estimate of the overall risk on project objectives

-used for projects that:
Require contingency reserve for schedule and budget.

Large and complex, involving go/No-go decisions.

Senior management wants more detail.

Techniques:
Three point Estimate
Expected monetary value or risk exposure
Program evaluation and review technique, PERT

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13
Q

Quantitative Risk Analysis
(Probability)

A

Lowest probability is 0
Highest probability is

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14
Q

Qualitative Risk analysis

A

Prioritisation of risks uses a Pre defined rating scale which considers likely hood and impact

  • quick an easy to perform
  • no special software ad tools needed
  • Evaluation of both probability and impact
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15
Q

Risk Acceptance

A

when the cost of avoiding the risk is (estimated to be ) greater than the actual cost of the damage that might be inflicted

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16
Q

Risk Avoidance

A

Minimise probability, avoid the cause associated to the risk

17
Q

Risk Reduction

A

Actions are taken to reduce likelihood of risk, prototyping ought to reduce the risk of incorrect requirements

18
Q

Risk Transfer

A

Risk is transferred to another person or organisation

19
Q

Risk Mitigation/ Contingency mesures

A

Actions are taken to reduce the impact if the risk occurs

20
Q

Cost effectiveness of risk actions

A

Addressing a risk usually hasa cost associated and the cost effectiveness can be measured

Leverage = (REbefore - REafter) / cost

leverage greater than 1 we implement and less than 1 we don’t implement
RE is risk exposure

21
Q

What is PERT

A

Program Evaluation and review technique

  • Used to determine the expected time for the project activities

-Can be used to calculater the probability of project overrun

  • Requires an understanding of critical pathways
22
Q

What do we need to carry out PERT analysis

A

-List of activities
- Predecessor/ Dependancy relationships
-Critical Path- sequence of actions where no delay is permissible

For Each Activity:
-Likely duration
-Optimistic duration
-Pessimistic Duration

23
Q

how to calculate Variance

A

(Pessimistic-optimistic/6) ^2

24
Q

How to Reduce steps on the critical path.

A

-Eliminate tasks on the critical path
- replan serial paths to be in parralell
-overlap sequential tasks
-shorten the duration of critical path tasks
-Shorten early/longest/ easiest task
-Shorten task that cast the least to speed up

25
Q
A