Risk, Opportunities, and Uncertainty

Question 1

Risk

Answer 1

An event or condition of uncertainty that, if it occurs, has a positive or negative effect on one or more project objectives.

Question 2

Transfer

Answer 2

A strategy for managing negative risks or threats that involves shifting the impact and ownership of the risk to a third party and paying a risk premium to the party taking on the liability of the risk.

Question 3

Risk Transference

Answer 3

A risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response.

Question 4

Risk Acceptance

Answer 4

A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.

Question 5

Risk Appetite

Answer 5

The degree of uncertainty an organization or individual is willing to accept in anticipation of a reward.

Question 6

Risk Avoidance

Answer 6

A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.

Question 7

Risk Breakdown Structure (RBS)

Answer 7

A hierarchical representation of potential sources of risk.

Question 8

Risk Categorization

Answer 8

Organization by sources of risk (e.g., using the RBS), the area of the project affected (e.g., using the WBS), or other useful category (e.g., project phase) to determine the areas of the project most exposed to the effects of uncertainty.

Question 9

Risk Enhancement

Answer 9

A risk response strategy whereby the project team acts to increase the probability of occurrence or impact of an opportunity.