What is the process of risk management?
Plan risk management; identify risks; perform qualitative risk analysis; perform quantitative risk analysis; plan risk responses; monitor and control risks
What is a key output of the Plan Risk Management process?
Risk management plan
What is a key ouput of the Identify Risks process?
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 group by category; list of risks requiring additional analysis and response; watchlist
What key outputs of the Perform Quantitative Risk Analysis process are added to the risk register?
Prioritized list of quantified risks; possible realistic and achievable completion dates and project costs; quantified probablitiy of meeting project objectives
What are key outputs of the Plan Risk Responses process?
Risk register updates: Residual risks, contingency risks, risk response owners, secondary risks, triggers, fallback plans, reserves for time and cost; updates to the project management plan and project documents
What are key outputs of the Monitor and Control Risks process?
Risk register updates: outcomes of risk reassessments and risk audits, updates to the risk register’ closing of risks that are no longer applicable, details of what happened when risks occurred, lessons learned, change requests; Updates to the project management plan and project documents
What is a risk?
An occurance that can affect a project for better (opportunity) or worse (threat)
Describe key things one needs to determine about each risk.
Probabilty, impact, timing and frequency
Someone who is risk averse is:
Unwilling to take risks
What is risk tolerance?
The areas of risk acceptable
Name the inputs to the risk management process.
Project background information; historical records from previous projects; organizational process assets; project charter; project scope statement; team; WBS; network diagram; staffing management plan; procurement management plan
What are risk categories?
Technical, project management, schedule, cost, quality, scope, resources, customer satisfaction, others
What are risk identification techniques?
Documenting reviews, brainstorming, delphi technique, root cause analysis, interviewing, SWOT, checklist analysis, assumptions analysis, diagramming techniques
What are types of risks?
What are risk triggers?
Early warning sigsns that a risk event has occurred or is about to occur
What is assumptions analysis? When is it done?
exploring the validity of project asumptions. It is done during the Identify Risks process
What is risk data quality assessment? When is it done?
Determining how well understood is the risk information; a method to test reliability of risk information collected; it is done during the Perform Qualitative Risk Analysis process
What is a probability and impact matrix?
The company’s scale used to determine which risks continue hrough the risk management process
What is the formula for expected monetary value?
Probability x impact
What is a decision tree?
A model of a decision to made which includes the probabilities and impacts of furture events
Who is a risk response owner?
The person assigned to execute risk responses for each critical risk
Name and define the risk response strategies for threats
Avoid: Eliminate a specific threat by eliminating the cause; mitigate: reduce the probaility or impact of a threat; Accept: passive acecptance – do nothing; if it happens it happens, active acceptance – develop contingency plans; Transfer: Make another party responsible for a risk, may include outsourcing, insurance, warranties, bonds and guarantees
Name and define the risk response strategies for opportunites
Exploit: Make sure the opportunity occurs; Share allocate ownership to a third party; enhance: increase probability or impacts; Accept: passive acceptance and active acceptance
What are residual risks?
Risks that remain after risk response planning: risks for which contingency and fallback plans have been created, risks which have been accepted
What are secondary risks?
New risks created by implementation of risk response strategies
How does buying insurance relate to risk response planning?
It exchanges an unknown risk for a known risk; it is a method to decrease project risk
How does a contract relate to risk response planning?
A contract helps allocate and mtigate risks; a risk respnse is done before a contract is signed
What are contingency plans?
Planned responses to risks
What are fallback plans?
Actions that will be taken if the contingency plan is not effective
What does a revised project management plan have to do with risk management?
The componenets of the project management plan will neeed to be updated based on the results of risk planning
What are reserves?
Time or cost added to the project to account for risk.
What is a contingency reserve?
Time or cost allocated to cover known unknowns; it is included in the cost baseline.
What is a management reserve?
Time or cost allocated to cover unknown unknowns; it is included in the cost budget
What are risk reassessments? When do they occur?
Reviews of the risk management plan and risk register; they occur during the monitor and control risks process
What is reserve analysis? When is it done?
Managing reserves and making sure the amount remaining is adequate. It is done during the monitor and control risks, estimate activity durations and determine budget processes
What are risk audits?
Examining and documenting the effectiveness of the risk process and the risk response owners
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