Risks and Issues

Question 1

Risk

Answer 1

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
Negative risks are called threats, and positive risks are called opportunities.

Question 2

Risk Assessment

Answer 2

The process of examing a program, project, or process for business analysis related risk.

Question 3

Overall Project Risk

Answer 3

Overall project risk is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty.

Question 4

Risk Strategies for Threats (5)

Answer 4

Risk Strategies for Threats
Avoid
Escalate
Transfer
Mitigate
Accept

Question 5

Avoidance

Answer 5

Risk Strategy Threat:
Threat avoidance is when the project team acts to eliminate the threat or protect the project from its impact.

Question 6

Escalation (Threat)

Answer 6

Risk Strategy Threat:
Escalation is appropriate when the project team or the project sponsor agrees that a threat is outside the scope of the project or that the proposed resonse would exceed the project manager’s authority

Question 7

Transference

Answer 7

Risk Strategy Threat:
Transfer involves shifting ownership of a threat to a third party to manage the risk and to bear the impact if the threat occurs.

Question 8

Mitigation

Answer 8

Risk Strategy Threat:
In threat mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat. Early mitigation action is often more effective than trying to repair the damage after the threat has occurred.

Question 9

Acceptance (Threat)

Answer 9

Risk Strategy Threat:
Threat acceptance acknowledges the existence of a threat, but no proactive action is planned. Actively accepting a risk can include developing a contingency plan that would be triggered if the event occurred; or it can include passive acceptance, which means doing nothing.

Question 10

Risk Strategies for Opportunities (5)

Answer 10

Risk Strategies for Opportunities:
Exploit
Escalate
Share
Enhance
Accept

Question 11

Exploit

Answer 11

Risk Strategy for Opportunity:
A response strategy whereby the project team acts to ensure that an opportunity occurs.

Question 12

Escalate (Opportunity)

Answer 12

Risk Strategy for Opportunity:
As with threats, this opportunity response strategy is used when the project team or the project sponsor agrees that an opportunity is outside the scope of the project or that the proposed response would exceed the project manager’s authority.

Question 13

Share

Answer 13

Risk Strategy for Opportunity:
Opportunity sharing involves allocating ownership of an opportunity to a third party who is best able to capture the benefit of that opportunity.

Question 14

Enhance

Answer 14

Risk Strategy for Opportunity:
In opportunity enhancement, the project team acts to increase the probability of occurrence or impact of an opportunity. Early enhancement action is often more effective than trying to improve the opportunity after it has occurred.

Question 15

Accept (Opportunity)

Answer 15

Risk Strategy for Opportunity:
As with threats, accepting an opportunity acknowledges its existence but no proactive action is planned.