Risk management


Preparation for final exam from production management on burch university - risk management topic.
Amer Zavlan
Flashcards by Amer Zavlan, updated more than 1 year ago
Amer Zavlan
Created by Amer Zavlan almost 9 years ago

Resource summary

Question Answer
What is risk ? Risk is uncertainty that has an impact on project primary objectives in either positive or negative way.
What are internal sources of risk ? Senior management Project team and management Organization of the project
What are external sources of risk ? Acts of nature The client Laws and standards
What are two subcategories of risk management ? Risk assessment Risk control
What is risk assessment ? A risk subcategory which deals with risk identification, risk analysis and risk prioritization.
What is risk control ? A subcategory of risk management which involves risk planning, risk migration and risk monitoring.
What are types of risks ? Generic risks Product-specific risks Project risks Product risks Business risks
What is generic risk ? A risk that are threats to any project. Those include bankruptcy, loss of key personal values and change.
What are product-specific risks ? More quantified state of a generic risk. Revolving around the project. It is identified by those who understand project details.
What are project risks ? A division of generic risks. Has impact on schedule and/or resources, such as personal resources or budget.
What are product risks ? Further quantification of project-specific risk. This affects quality and performance of the software.
What is business risk ? A little bit generic and a little bit product risk. Deals with questions such as will the product be sold well on market, will it be used enough, does the product fin in the goal, etc.
What are factors that affect identifying of risk ? People Project size Process Technology Tools Organizational, managerial and customer estimation Sales Support
How is risk probability evaluated ? It is either: Put on a numerical scale for easier analysis. For example, 20% of chance to lose an employee, etc. OR Put in a category (very possible, highly improbable, etc.)
What is risk impact evaluation ? Evaluating what would happen if risk affected the project.
What is delphi technique ? Every team member evaluates risks' probability individually, and proceed to have a debate about evaluation afterwards.
How should we deal with risks ? Since dealing with all risks is redundant and unnecessary in most cases, we prioritize them, and try to solve them from top to bottom. (top - high priority) High probability risks should be high priority.
How can we divide risk control ? Mitigation and Monitoring
What is risk mitigation ? Calculating whether risk benefits would outweight risk costs. Sometimes involves calculating risk leverage.
What is risk leverage formula ? Risk Leverage = (risk exposure before reduction – risk exposure after reduction)/cost of risk reduction
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