Risk Terminology Flashcards
Brainstorming
A data-generating technique which includes team members or subject matter experts for the purpose of solving project problems, identifying project risk, and planning-related activities
Buffer
Compensation in the planning for unknown items that could occur; typically schedule- or cost related. Sometimes called reserve
Contingency Allowance
Compensation in the planning for unknown items that could occur; typically schedule- or cost related; also commonly called buffer
Contingency Plans
Pre-established actions that the team executes if a known risk event occurs on the project
Contingency Reserves (Output/Input)
Reserves that can help mitigate schedule or cost issues (risk), in the case of changes with the scope or quality on the project
Decision Tree Analysis (Technique)
The product of multiplying the monetary value impact and probability of the risk event; helps an organization make decisions based on potential outcome and impact
Expected Monetary Value (EMV) (Analysis)
The product of multiplying the monetary value impact and probability of the risk event
Fallback Plans
A type of plan created for risks with a great impact on project goals, to be executed if attempts to minimize the risk are not successful
Identify Risks
The process of determining which risks can impact a project and the documentation of their properties or characteristics
Monitor and Control Risks
The process of monitoring known risks, reducing any risks, identifying any new risks, and monitoring risk reduction over the life of the project
Monte Carlo Analysis
A technique used to simulate the outcome of a project many times to determine the range of possible outcomes and the probability of their occurrence
Perform Qualitative Risk Analysis
Analyze risks and determine the priority of their effects on the project
Perform Quantitative Risk Analysis
Measure the probability and impact of the risks and estimate the impact on the project
Plan Risk Management
The process of defining responses to opportunities arising within the project and to threats to the project
Plan Risk Responses
The process of determining what risk responses will be used on risk events and who will be responsible for implementing the responses if the risks occur
Preventive Action
Documented activities to execute, if needed , that should minimize (or eliminate) the impact of a negative risk on the project
Probability and Impact Matrix (Tool)
A tool used to determine where a risk fits on a project- The typical rating is high, medium, or low for probability and impact.
Project Risk Management
The processes required to manage the uncertainties of a project: planning, identifying , analyzing, responding , and monitoring and controlling
Reserve Analysis
A technique to determine the amount of reserves needed for a project
Reserves
Compensation in the planning for unknown items that could occur; is typically schedule- or cost-related; also commonly called buffer
Residual Risk
Risk that remains after response strategies have been applied
Risk
The possibility of a negative (threat) or positive (opportunity) event
Risk Acceptance
Opting to accept the impact or consequences of a risk event
Risk Avoidance
Eliminating a risk or threat, usually by eliminating the cause
Risk Breakdown Structure (RBS) (Tool)
A decomposition of the risk categorization, and the risks within those categories that could occur on a project
Risk Category
A grouping of types of risk on a project (Ex: technology, organizational, customer, market)
Risk Database
A data repository that stores and manipulates information associated with the risk management processes
Risk Events
Events that may impact the project (either negative or positive)
Risk Factors
Numbers representing the risk of certain events, the likelihood of their occurring , plus the impact on the project (if the event does occur)
Risk Management Plan
A document that details and describes the plan for managing risk over the life of the project
Risk Mitigation
Minimizing the impact of a risk event by minimizing the likelihood (probability) of its occurrence
Risk Register (Output/Input)
The documented results of Plan Risk Management which can include the outputs of Perform
Qualitative Risk Analysis and Perform Quantitative Risk Analysis, as well as Plan Risk Responses
Risk Seeking
Possessing a higher tolerance than most for risk
Risk Symptoms
Characteristics which indicate that a risk event is possibly starting to occur; could also be called risk triggers
Risk Tolerance or Risk Utility
The level of satisfaction from a potential risk payoff
Risk Transference
Allocating the responsibility for and impact of the risk event to another party
Risk-Averse
Possessing a low desire or tolerance for risk
Risk-Neutral
A middle ground between the risk taken and the benefit received
Secondary Risks
Risks that result from the execution of a risk response
Sensitivity Analysis
A technique used in risk management that helps show which risks will likely have the most impact on the project
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis
A risk analysis technique which considers the strengths, weaknesses, opportunities, and threats of the project to facilitate a more knowledgeable risk management analysis
Threat
A negative risk to the project
Trigger(s)
A signal that a risk event could occur or has occurred
Workaround (Technique)
A response to a risk that wasn’t planned
