Risky Terms

Question 1

Contingency fund

Answer 1

An amount of funds used to offset a project’s risks.

Question 2

Secondary risks

Answer 2

A risk response creates another risk

Question 3

Residual risks

Answer 3

A risk response may create small generally accepted risks.

Question 4

Triggers

Answer 4

Condition, event, or warning sign that a risk is about to happen. Usually “triggers” a risk
response

Question 5

Positive risk

Answer 5

Risks with a positive impact; also called opportunities

Question 6

Negative risks

Answer 6

Risks with a negative impact; also called threats

Question 7

Pure risk

Answer 7

Only offers a negative impact (injury, fire, theft, destruction)

Question 8

Business risk

Answer 8

offer an upside or a downside

Question 9

Qualitative analysis

Answer 9

Qualifying the risks for legitimacy

Question 10

Quantitative analysis

Answer 10

Quantifies the risk exposure.

Question 11

Utility function

Answer 11

A person’s or organization’s willingness to accept risk. Relative to the project priority
as high-priority projects are typically risk adverse. Also known as risk tolerance.