Risk Theme

Question 1

Define “risk”

Answer 1

An uncertain event, that should it occur, will have an impact on the achievement of objectives.

Question 2

Define a threat…

Answer 2

A risk which has a negative impact

Question 3

Define an opportunity

Answer 3

A risk which has a positive impact

Question 4

For risk management to work effectively, what is needed:

Answer 4

1) Identified - Clear description

2) Asses - Probability, impact

3) Planned for - Suitable responses and assigning owner

4) Controlled

Question 5

Risk Principles

Answer 5

1) Understanding project context
2) Involving stakeholders
3) Establishing clear project objectives
4) Developing risk management approach
5) Reporting regularly
6) Defining clear Roles and responsibilities
7) Making a clear support structure, and supportive culture for risk management
8) Monitoring for earl warning indicators
9) Establishing a review cycle and see continual improvement

Question 6

What must the Risk Management approach define as a minimum:

Answer 6

1) The way we identify and assess risks, implement responses and communicate risk

2) Asses whether the risks might affect the business justification

3) The roles and responsibilities

Question 7

What are the minimum requirements for the risk theme in Prince 2?

Answer 7

A defined risk management approach

A risk register, maintained

Ensure risk are identify, assessed, managed and reviewed

Use lessons to inform inform risk identification and management

Question 8

What are the minimum products for the risk theme in Prince 2?

Answer 8

Risk management approach

Risk Register

Question 9

What is the purpose of risk management approach in simple?

Answer 9

To define the approach to identify, assess and control uncertainty

Question 10

What is a risk register in simple?

Answer 10

A record of identified risk, their status and history

Question 11

Which process is the Risk management approach and Risk register created in?

Answer 11

Initiating a project

Question 12

What is the risk tolerance?

Answer 12

How much risk a project can cope with

Question 13

Where are risks in the starting up a project process recorded?

Answer 13

The daily log

Question 14

What should a risk register contain?

Answer 14

1) A risk identifier (Unique ID)
2) Risk author (Person who raised it)
3) Date registered
4) Risk category
5) Risk description - cause, event, threat or opportunity
6) Probability, impact and expected value
7) Proximity - How close?
8) Risk response categories (Accept, share, transfer)
9) Risk response
10) Risk status
11) Risk owner

Question 15

What are suitable responses to a threat?

Answer 15

1) Avoid
2) Reduce

Question 16

What are the 5 steps to risk management procedure?

Answer 16

1) Identify
2) Assess
3) Plan
4) Implement
5) Communicate

Question 17

How do you identify the context, for the Risk Management procedure?

Answer 17

View the project product description, project brief, project mandate and the risk management approach

Question 18

Risk management is not about eliminating risk, but:

Answer 18

understand the risk and bring the risks to an appropriate level

Question 19

Once the risks have been identified, where should they be recored?

Answer 19

Risk register

Question 20

Explain risk assessment in the recommended risk procedure…

Answer 20

1) Risk probability - How likely?
2) Impact - What will happen if it does?
3) Proximity - When will it happen?

Question 21

How would you clearly express the risk in 3 simple words?

Answer 21

Cause
Event (May occur)
Effect - the result of the effect

Question 22

Explain risk plans in the recommended risk procedure…

Answer 22

Insurance - risk transfer

Locking doors - Risk reduction

Question 23

What is secondary risK?

Answer 23

Risks which relate to the new situation after the risk response has been implemented.

Question 24

What are the 4 responses which both Threat and Opportunity share?

Answer 24

1) Prepare contingent plans
2) Accept
3) Share
4) Transfer

Question 25

What are the 2 “Threat Specific” responses to risk?

Answer 25

Avoid
Reduce

Question 26

What are the 2 “Oppurtunity Specific” responses to risk?

Answer 26

Exploit
Enhance

Question 27

What is PASTER and PASTEE

Answer 27

1) Prepare contingent plans
2) Accept
3) Share
4) Transfer

Avoid
Reduce

Exploit
Enhance

Question 28

What is the primary goal of the Implement part of the risk management procedure?

Answer 28

Put responses in action and update/implement the plan and set clear responsibilities for the risk owner, risk actionee

Question 29

What is the risk owner?

Answer 29

1) Management
2) Monitoring
3) Control

Of all aspects of the identified risk

Question 30

Who is the risk actionee?

Answer 30

1) Responds to the risk
2) Support and take direction from risk owner

Question 31

What is the Communicate step in the risk management procedure?

Answer 31

Checkpoint reports
Highlight reports
End stage reports
End project reports
Exception reports

Question 32

What is the money called for the funding of risk mitigating actions?

Answer 32

Risk budget (Part of Project budget)

Question 33

What are corporates/programme responsibilities for risk?

Answer 33

Provides the risk management policy

Provides the Risk management process guide

Question 34

What are is the executive responsibilities for risk?

Answer 34

Accountable for all aspects of all risk management - identified, assessed and controlled

Ensure the risk management approach exists

Escalates as necessary

Question 35

What are the senior user responsibilities for risk?

Answer 35

Ensure risks are identified, assessed and controlled

Question 36

What are the project supports responsibilities for risk?

Answer 36

Assist with maintenance of the risk register

Risks are identified, assessed and controlled

Question 37

What are the team managers responsibilities for risk?

Answer 37

Ensure risks are identified, assessed and controlled

Question 38

What are the project assurance responsibilities for risk?

Answer 38

Reviewing the risk management practices

Ensuring alignments to risk management approach is maintained

Question 39

What are the senior supplier responsibilities for risk?

Answer 39

Ensure risks are identified, assessed and controlled

Question 40

What are the project manager responsibilities for risk?

Answer 40

Create risk management approach

Creates/maintains risk register