Risk Management Overview

Question 1

What is risk? 4 parts

Answer 1

Probability
Consequences
Ability ( what do you do when risks happen)
Appetite (how willing is the company to take risks)

Question 2

What is the 4 areas of risks for a project? Knowledge and awareness

Answer 2

Unknown/known
Known/known
Unknown/unknown
Known/unknown

Question 3

Risk definition What 3 part can it be divided into ?

Answer 3

In terms of decision-making the environment can be divided into three parts:
Certainty
Risk-event that may or may not happen
Uncertainty -weather/amount-quality of labour/cost and materials

Question 4

Risk definition?

Answer 4

Certainty exists only when one can specify exactly what will happen during the specific time

Can be positive or negative to your project(threats/opportunity)

Question 5

What can a company do to plan for risk?name 5

Answer 5

Plan
Identify 
Analyses
Response 
Control the risk

Question 6

Risk as possible events?(4)

Answer 6

First- uncertainty
Second- there is an emphasis on events(delays)
Third- emphasis on future
Finally- emphasis on interest and objectives

Question 7

The process on a project(4)

Answer 7

Investment
Design
Construction
Use

Question 8

Typically risk in construction?

Answer 8

Failure to keep within the cost
Failure to keep within the time
Failure to meet the required technical standards (spec)

Question 9

Risk categories (6)

Answer 9

Financial
Market 
Economical
Contractual 
Operational
Political

Question 10

The standard for project management of a project?

Answer 10

Project management body of knowledge (PMBOK guide 6th)