Risky terms

Question 1

Contingency fund

Answer 1

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

Question 2

Secondary risk

Answer 2

A risk response creates another risk

Question 3

Residual risk

Answer 3

A risk responses may create small generally accepted risk.

Question 4

Pure risk

Answer 4

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

Question 5

Positive risk

Answer 5

Risks with a positive impact, also called opportunities

Question 6

Negative risk

Answer 6

Risks with a negative impact, also called threats.

Question 7

Business risk

Answer 7

offer an upside or a downside

Question 8

Qualitative analysis

Answer 8

Qualifying the risk for legitimacy

Question 9

Quantitative analysis

Answer 9

Quantifies the risk exposure

Question 10

Utility function

Answer 10

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

Question 11

Triggers

Answer 11

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