Term
| What is the process of risk management? |
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Definition
Plan risk management
Identify Risk
Perform Qualitative risk analysis
Perform Quantitative risk analysis
Plan Risk Response
Control risks |
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Term
| What is the key output of the plan risk management process? |
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Definition
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Term
| What is the key output of the identify risk process? |
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Definition
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Term
| What key outputs of the Perform Qualitative Risk analysis process are added to the risk register? |
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Definition
Risk rank for the project
Prioritized risk and their probability and impact ratings
Risk grouped by category
List of risks requiring additional analysis and response
List of risk requiring analysis in the near term
Watch list (noncritical risk) |
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Term
| What key outputs of the perform quantitative risk analysis are added to the risk register? |
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Definition
Prioritized list of quantified risk
Initial amount of contingency time and cost reserves needed
Possible realistic and achievable completion dates and project cost
Quantified probability of meeting project objectives
Trends in quantitative risk analysis |
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Term
| What key outputs of the Plan Risk Responses process are added to the risk register? |
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Definition
Residual risk
Contingency plans
Fallback plans
Risk owners
Secondary risk
Risk triggers
Contracts
Reserves for time and cost |
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Term
| What are the key outputs of the Control Risk process? |
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Definition
Work performance information
Risk register updates
Change requests
Updates to the project management plan and project documents
Updates to organizational process assets |
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Term
| What key outputs of the Control Risks process are added to the risk register |
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Definition
Outcomes of risk reassessments and risk audits
Results of implemented risk responses
Updated to previous parts of risk management
Closing of risk that are no longer applicable
Details of what happened when risks occurred
Lessons learned |
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Term
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Definition
| A future occurrence that may or may not happen that can have a positive (opportunity) or negativity (threat) impact on the project |
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Term
| What are the four key factors that need to be determined for each risk? |
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Definition
Probability
Impact
Timing
Frequency |
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Term
| A person who is risk averse is? |
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Definition
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Term
| Define risk appetite, risk tolerance, and risk threshold? |
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Definition
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 |
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Term
| What are the inputs to the risk management process? |
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Definition
Project background information and other organizational process assets
Enterprise environmental factors
Project charter, network diagram, and other project documents
Project management plan (including scope baseline and the knowledge area plans)
Procurement documents
Stakeholders
Risk register work performance data and reports |
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Term
| What are some examples of sources of risk? |
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Definition
Technical
Project management
Schedule
Cost
Quality
Scope
Resources
Customer satisfaction |
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Term
| What are some examples of risk identification techniques? |
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Definition
Documentation reviews
Information gathering techniques
SWOT analysis (strength, weakness, opportunities, threats)
Checklist analysis
Assumptions analysis
Diagramming techniques |
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Term
| What is a probability and impact matrix? |
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Definition
| The company’s standard rating system to promote a common understanding of what each risk rating means |
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Term
| What is the sensitivity analysis? |
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Definition
| A technique to analyze and compare the potential impacts of identified risk |
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Term
| What is the formula for expected monetary value? |
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Definition
| Probability times impact, or EMV=P x I |
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Term
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Definition
| A model of a decision to be made that includes the probabilities and impacts of future events |
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Term
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Definition
| The person assigned to develop and execute risk responses for a critical risk |
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Term
| What are the possible risk response strategies for threats? |
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Definition
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 |
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Term
| What are the possible risk response strategies for opportunities? |
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Definition
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 |
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Term
| What are residential risk? |
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Definition
| Risk that remain after response planning |
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Term
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Definition
| New risk created by the implantation of risk response strategies |
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Term
| How does buying insurance relate to risk response planning? |
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Definition
It exchange an unknown cost impact of a known risk for a known cost impact
It is a method to decrease project risk |
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Term
| How does a contract relate to risk response planning? |
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Definition
A contract helps allocate and mitigate risk
Risk analysis must be done before a contract is assigned |
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Term
| What are the contingency plans? |
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Definition
| Planned response to be implemented when and if a risk event occurs |
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Term
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Definition
| Actions that will be taken if the contingency plan is not effective |
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Term
What are reserves?
What are two kinds of reserves? |
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Definition
Time or cost added to the projects to account for risk
Management reserve
Contingency reserve |
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Term
| What is a contingency reserve? |
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Definition
Time or cost allocated to cover known unknowns
It is included in the cost baseline |
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Term
| What is a management reserve? |
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Definition
Time or cost allocated to cover unknown unknowns
It is added to the cost baseline to get the cost budget |
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Term
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Definition
| Unplanned responses developed to deal with the occurrence of unanticipated events or problems on a project (or to deal with risk that had been accepted because of unlike hood of occurrence and/ or minimal impact) |
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Term
What are risk reassessments?
When do they occur? |
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Definition
Review of the risk management plan and risk register
During Control Risk |
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Term
What is reserve analysis?
When is it done during the risk management process? |
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Definition
Managing the reserves and making sure the amount remaining is adequate
During control risk |
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Term
| What are the risk audits? |
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Definition
| Assessing the effectiveness of the risk management process and specific risk responses that have been implemented |
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