Theme: Risk

Question 1

Risk is defined as…

Answer 1

an uncertain event that, should it occur, will have an effect on the achievement of objectives. It consists of a combination of the probability of a perceived threat or opportunity occurring, and the magnitude of its impact on objectives.

Question 2

A threat is defined as…

Answer 2

a risk that has a negative impact.

Question 3

An opportunity is defined as…

Answer 3

a risk that has a positive impact.

Question 4

Risks need to be…

Answer 4

identified, assessed, planned for and controlled.

Question 5

Risk principles (9)

Answer 5

1. Understand the project context
2. Involve the stakeholders
3. Establish clear project objectives
4. Develop a risk management approach
5. Report on risk regularly
6. Define clear roles and responsibilities
7. Establish a support structure and supportive culture for risk management
8. Monitor for early warning indicators
9. Establish a review cycle and seek continual improvement

Question 6

Risk theme minimum requirements (rules)

Answer 6

1. Define the risk management approach which must cover:
   - the way we identify and assess risks, implement responsibilities and communicate risk
   - assess if the risks might affect the business justification
   - the roles and responsibilities
2. We must maintain risk register
3. Ensure risks are identified, assessed, managed and reviewed
4. Use lessons to inform risk identification and management

Question 7

Risk theme minimum requirements (products)

Answer 7

Risk management approach

Risk register

Question 8

What does the risk management approach document include?

Answer 8

Information on how the risk will be managed: processes, techniques, procedures, responsibilities.

Question 9

What does the risk register document include?

Answer 9

Provides a record of identified risks, their status and history.

Question 10

During which process are risk management approach and risk register created?

Answer 10

Initiating a project

Question 11

What is the relation between risk mgmt policy and risk mgmt approach?

Answer 11

The risk mgmt approach should be created based on the risk mgmt policy (it helps to define it).

Question 12

Risk tolerance defines..

Answer 12

how much risk you are willing to take.

Question 13

Any risks identified during “starting up a project” should be recorded in the project manager’s

Answer 13

Daily log and transferred to the risk register if the initiation stage is approved by the project board.

Question 14

What information should the risk register contain? (8)

Answer 14

1. Risk identifier
2. A risk author
3. Date registered
4. Risk category (schedule, quality, legal etc.)
5. A risk description
6. The probability, impact and expected value of the risk
7. Proximity
8. Risk response categories
9. Risk response
10. Risk status (active / closed)
11. Risk owner (there can only be 1)
12. Risk actionee

Question 15

Risk response categories (threat)

Answer 15

Avoid
Reduce

Prepare contingent plans
Accept
Share
Transfer

Question 16

Risk response categories (opportunity)

Answer 16

Exploit
Enhance

Prepare contingent plans
Accept
Share
Transfer

Question 17

Risk management procedure steps

Answer 17

1. Identify (context, risks)
2. Assess (estimate, evaluate)
3. Plan
4. Implement

-> Communicate

Question 18

Which 4 documents should be examined while identifying the risk context?

Answer 18

Risk mgmt approach
Project mandate
Project brief
Project product description

Question 19

Give some examples of techniques that can be used for risk identification

Answer 19

Review lessons
Risk checklists
Risk prompt lists
Brainstorming
Risk breakdown structures

Question 20

It is crucial to identify 3 aspects of each risk…

Answer 20

Cause
Event
Effect

Question 21

What 3 aspects should be evaluated while assessing the risk?

Answer 21

Probability - How likely are they to happen?
Impact - What will happen if it does?
Proximity - When will it happen?

Question 22

What is Probability Impact Grid for?

Answer 22

It is a ranking system that provides assessment of risk severity.

Question 23

What is risk owner responsible for?

Answer 23

management
monitoring
control of risk

Question 24

What is risk actionee responsible for?

Answer 24

response to risk

supported by risk owner

Question 25

Information on risks is communicated in the following reports…

Answer 25

Highlight reports
Checkpoint reports
Exception reports
End-stage reported
End-project reports

Question 26

Name risk responsibilities of corporate or programme mgmt

Answer 26

Provide risk mgmt policy

Risk mgmt process guide

Question 27

Name risk responsibilities of executive

Answer 27

Ensures risk mgmt. approach exists
Risks are identified, assessed & controlled
Escalates as necessary

Question 28

Name risk responsibilities of senior user/supplier

Answer 28

Ensures user/supplier risks are identified, assessed, controlled

Question 29

Name risk responsibilities of project manager

Answer 29

Creates risk mgmt. approach
Creates/maintains Risk Register
Ensures that risks are identified, assessed & controlled

Question 30

Name risk responsibilities of team manager

Answer 30

Ensures risks are identified, assessed, controlled

Question 31

Name risk responsibilities of project assurance

Answer 31

Reviewing risks mgmt. practices

Maintain alignment with risk mgmt. approach

Question 32

Name risk responsibilities of project support

Answer 32

Assist with maintenance of project risk register