Risks Management Flashcards
What is the process of risk management?
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Performa Quantitative Risk Analysis
Plan Risk Responses
Control Risks
What is the key output of the Plan Risk Management process?
Risk management plan
What is the key output of the Identify Risk process?
Risk Register
What key outputs of the Perform Qualitative Risk Analysis process are added to the risk register?
Risk ranking for the project
Prioritized risks and their probability and impact ratings
Risks grouped by category
List of risks requiring additional analysis and response
List of risks requiring analysis in the near term
Watch list (noncritical risks)
What key outputs of the Perform Quantitative Risk Analysis process ared added to the risk register?
Prioritized list of quantified risks
Initial amount of contingency time and cost reserves needed
Possible realistic and achievable completion dates and project costs
Quantified probability of meeting project objectives
Trends in quantitative risk analysis
What key outputs of the Plan Risk Responses process are added to the risk register?
Residual risks
Contingency plans
Fallback plans
Risks owners
Secondary risks
Risk triggers
Contracts
Reserves for time and cost
What are the key outputs of the Control Risks process?
Work performance information
Risk register updates
Changes requests
Updates to the project management plan and project documents
Updates to organizational process assets
What key outputs of the Control Risks process are added to the risk register?
Outcomes of risk reassessment and risk audits
Result of implemented risk responses
Updates to previous parts of risk management
Closing of risks that are no longer applicable
Details of what happened when risks occured
Lesson learned
What is a risk?
A future occurence that may or may not happen that can have a positive (opportunity) or negative (threat)
impact on the project
What are the 4 key factors that need to be determined for each risk?
Probability
Impact
Timing
Frequency
A person who is risk averse is:
Unwilling to take risk
Define risk appetite, risk tolerance, and risk threshold.
Risk appetite: a general, high-level description of the acceptable level of risk.
Risk tolerance: a measurable amount of acceptable risk
Risk threshold: the specific point at which risk becomes
unacceptable.
What are the inputs to the risk management process?
Project background information and other organizational process assets
Enterprise environment factors
Project charter, network diagram, and other project documents
Project management paln (including scope baseline and the knowledge area plans)
Time and cost estimates
Procurement documents
Stakeholders register
Risk register
Work performance data and reports
What are some example of sources of risk?
Technical
Project management
Schedule
Cost
Quality
Scope
Resources
Customer satisfaction
What are some examples of risk identification techniques?
Documents reviews
Information-gathering techniques
SWOT analysis (strenghs, weaknesses, opportunities, threats)
Checklilst analysis
Assumption analysis
Diagramming techniques
What are risk triggers?
Early warning signs that a risk event has occured, or is about to occurs
They let risk owners know when to take action
What is assumption analysis?
When is it done?
Assessing the assumptions made on the project and determining whether they are valid.
During Identify Risks
What is risk data quality assessment?
When is it done?
Determine how accurate, reliable, and well understood the risk information during Performan Qualitative Risk Analysis
What is probability and impact matrix?
The company’s standard rating system to promote a common understanding of what each risk rating means
What is sensitivity analysis ?
A technique to analyze and compare the potential impacts of identified risks
What is the formulat for expected monetary value?
Probability times impact, or EMV = P x I
What is a decision tree?
A model of a decision to be made that includes the probabilities and impacts of future events
Who is a risk owner?
The person assigned to develop and execute risk responses for a critical task
What are the possible risk response strategies for threats?
Avoid:Eliminate the threat by eliminating its cause
Mitigate: Reduce the probability or impact of the threat
Transfer:Make another party responsible for the risk
(outsourcing,insurance, warranties,bonds,guarantees)
Accept:
- Passive acceptance - do nothing; if it happens, it happens
- Active acceptance - develop contingency plans in advance.
What are the possible risk response strategies for opportunities?
Exploit: Make sure the opportunity occurs
Enhance: Increase probability or positive impact of the risk event
Share: Allocate full or partial ownership of the opportunity to a third party
Accept: Do nothing; if it happens, it happens
What is a residual risks?
Risks that remains after risk response planning
What are secondary risks?
New Risks created by the implementation of risk responses strategies
How does buying insurance relate to risk responses planning?
It exchnages an unknown cost impact of a know risk for a known cost impact
It is a method to decrease project risk
How does a contract relate to risk responses planning
A contract helps allocate and mitigate risks
Risk analysis must be done before a contract is signed
What are contingency plans?
Planned responses to be implemented when and if a risk event occurs
What are fallback plans?
Actions that will be taken if the contingency plan is not effective
What are reserves?
What are 2 kinds of reserves?
Time or cost added to the project to account for risk
Management reserve
Contingency reserve
What is a contingency reserve?
Time or cost allocated to cover known unknows
It is included in the cost baseline
What is a management reserve?
Time or cost allocated to cover unknow unknows
it is added to the cost baseline to get the cost budget
What are workarounds?
Unplanned responses developed to deal with the occurence of unanticipated events or problems on a project (or to deal with risks that had been accepted because of unlikelihood of occurence and/or minimal impact)
What are risk assessments?
When do they occur?
Reviews of the risk management plan and risk register
During Control Risks
What is reserve analysis?
When is it done during the risk management process?
Managing the reserves and making sure the amount remaining is adequate
During Control Risks
What are risk audits
Assessing the effectiveness of the risk management process and specific risk responses that have been implemented
