11 PROJECT RISK MANAGEMENT

Question	Answer
11.1 Plan Risk Management	Process of defining how to conduct risk management activities for a project.
11.2 Identify Risks	The process of determining which risks may affect the project and documenting their characteristics.
11.3 Perform Qualitative Risk Analysis	Prioritizing risks for further analysis or action Assessing and combining their probability of occurrence and impact.
11.4 Perform Quantitative Risk Analysis	*Numerically analyzing the effect of identified risks on overall project objectives.
11.5 Plan Risk Responses	*Developing options and actions to enhance opportunities and to reduce threats to project objectives
11.6 Control Risks	Implementing risk response plans Tracking identified risks Monitoring residual risks Identifying new risks *Evaluating risk process effectiveness throughout the project.
Project risk is	an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives such as scope, schedule, cost, and quality. A risk may have one or more causes and, if it occurs, it may have one or more impacts. A cause may be a given or potential requirement, assumption, constraint, or condition that creates the possibility of negative or positive outcomes
Known risks are those	that have been identified and analyzed, making it possible to plan responses for those risks
Unknown risks	cannot be managed proactively and therefore may be assigned a management reserve. A negative project risk that has occurred is considered an issue.
Overall project risk represents	the effect of uncertainty on the project as a whole. It is more than the sum of the individual risks within a project, since it includes all sources of project uncertainty. It represents the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.
Risk appetite	*Degree of uncertainty an entity is willing to take on in anticipation of a reward.
Risk tolerance	*Degree, amount, or volume of risk that an organization or individual will withstand.
Risk threshold	which refers to measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.
Positive and negative risks are commonly referred to as	opportunities and threats
Participants in risk identification activities may include the following	project manager, project team members, risk management team (if assigned), customers, subject matter experts from outside the project team, end users, other project managers, stakeholders, and risk management experts.
The risk register is a	* Contains the results of risk analysis and risk response planning *Contains the outcomes of the other risk management processes as they are conducted, resulting in an increase in the level and type of information contained in the risk register over time.
Risk probability assessment investigates the	likelihood that each specific risk will occur.
Risk impact assessment investigates the ...	potential effect on a project objective such as schedule, cost, quality, or performance, including both negative effects for threats and positive effects for opportunities.
Risk data quality assessment is a technique to...	evaluate the degree to which the data about risks is useful for risk management. It involves examining the degree to which the risk is understood and the accuracy, quality, reliability, and integrity of the data about the risk.
Perform Quantitative Risk Analysis is performed on...	risks that have been prioritized by the Perform Qualitative Risk Analysis process as potentially and substantially impacting the project’s competing demands
Other purposes of the Control Risks process are to determine if:	• Project assumptions are still valid, • Analysis shows an assessed risk has changed or can be retired, • Risk management policies and procedures are being followed, and • Contingency reserves for cost or schedule should be modified in alignment with the current risk assessment.
WHAT DOES THE PROJECT RISK MANAGEMENT PLAN CONTAIN?	*IDENTIFIES, EVALUATES, RESPONDS TO AND MONITORS PROJECT RISK
WHAT IS THE OBJECTIVE OF RISK MANAGEMENT?	OBJECT IS NOT TO AVOID RISK ENTIRELY BUT TO INCREASE THE PROBABILITY AND IMPACT OF POSITIVE EVENTS DECREASE THE PROBABILITY AND IMPACT ON NEGATIVE EVENTS RISK MANAGEMENT PROACTIVE
WHAT ARE THE PROJECT RISK AREAS?	PLAN RISK MANAGEMENT IDENTIFY RISK MANAGEMENT PERFORM QUALITATIVE RISK ANALYSIS PERFORM QUANTITATIVE RISK ANALYSIS PLAN RISK RESPONSE MONITOR & CONTROL RISK
*WHAT IS RISK RESPONSE?	ACTION THAT WILL BE TAKEN PRIOR TO THE RISK TAKEN PLACE REDUCE THE PROBABILITY OR IMPACT OF THREAT *INCREASE THE PROBABILITY OR IMPACT OF OPPERTUNITY
WHAT IS ROOT CAUSE?	*THE FACTOR THAT IS THE SOURCE OF RISK WHAT FACTORS GENERATE THE RISK SO WE CAN BETTER DEVELOP PLANS TO INFLUENCE THE RISK
WHAT IS A TRIGGER?	SIGNS, SYMPTOMS, OR KEY EVENT THAT WARN US RISK IS IMMINENT OR IS NOW MORE LIKELY TO OCCUR IF YOU CAN BETTER UNDERSTAND THE TRIGGERS-TAKE ADDITIONAL STEPS TO INFLUENCE THE RISK
WHAT IS IMPACT?	EFFECT OF RISK WILL HAVE -EXPRESSED IN $$$, TIME, QUALITY, SCOPE MEASURES AIM TO REDUCE OR ELIMINATE IMPACT OF NEG RISK-INCREASE BENEFICIAL IMPACT OF POS RISK
WHAT IS CONTINGENCY PLAN?	ACTION THAT WILL BE TAKEN IN RESPONSE TO A RISK EVENT BECOMING IMMINENT OR IS OCCURRING AIR TO REDUCE IMPACT OF NEG RISK-INCREASE IMPACT OF POS RISK
WHAT IS FALL BACK PLAN?	*WHAT ACTIONS WILL BE TAKEN IF CONTINGENCY PLAN PROVES INEFFECTIVE
PEOPLE/COMPANY: RISK TOLERANCE/RISK SEEKING?	*WILLINGNESS TO ACCEPT RISK EVENT WHEN BENEFIT DOESN'T SEEM WORTH THE IMPACT
RISK TOLERANCE/RISK AVERSE?	*TENDENCY TO AVOID RISK EVEN WHEN THE AWARD OUTWEIGHS THE POTENTIAL NEG IMPACT
RISK TOLERANCE: RISK NEUTRAL	*LOGICAL BALANCED APPROACH THAT IS WEIGHTED AGAINST THE PROS AND CONS OF RISK
WHAT IS RISK UTILITY?	AMOUNT OF TOLERANCE A PERSON OR ORGANIZATION HAS FOR RISK HOW MUCH NEG IMPACT WILLING TO ACCEPT IN TRADE FOR POTENTIAL POSITIVE BENEFIT *PM HAS TO FACILITATE AGREEMENT BETWEEN RISK AVERSE AND RISK TOLERANCE VIEW POINTS
RISK ROLES & RESPONSIBILITIES: PM	OVERALL RISK MANAGEMENT ENSURING IT'S PROPERLY COORDINATED WITH OTHER PM ACTIVITIES
RISK ROLES & RESPONSIBILITIES: RISK MANAGER	RESPONSIBLE FOR ESTABLISHING AND OVERSEEING RISK MANAGEMENT PROCESSES-COORDINATING THEM WITH PM MONITORS RISK/COMMUNICATES THEM WITH TEAM & STAKEHOLDERS *HOLDS SOME LEVEL OF AUTHORITY -DOCUMENTATION IN RISK MANAGEMENT PLAN
RISK ROLES & RESPONSIBILITIES: RISK OWNER	PERSON WHO HAS THE SKILLS, EXPERTISE NECESSARY TO BEST MANAGE A PARTICULAR RISK ASSIST IN DEVELOPING RISK RESPONSES, CONTINGENCY PLANS, RISK ACTIONS AND MONITORS THE RISK
RISK ROLES & RESPONSIBILITIES: RISK ACTION OWNER OR RISK RESPONSE OWNER	PERSON RESPONSIBLE FOR CARRYING OUT RISK RESPONSE ACTIVITIES FOR PARTICULAR RISK RESPONSIBLE FOR MANAGING THEIR RISK
WHAT DOES RISK MANAGEMENT PLANNING INVOLVE?	DEFINING WHAT RM ACTIVITIES WILL OCCUR ESTABLISHING ALLOTTED TIME & COST ASSIGNING RM RESPONSIBILITIES DECIDING WHO RISK PROBABILITY & IMPACT MEASURES *DECIDING ACCEPTABLE RISK TOLERANCE & THRESHOLDS
HOW DOES PROJECT PRIORITY, SIZE, COMPLEXITY AND IMPACTS OF PROJECT FAILURE IMPACT RISK PLANNING?	IMPACT THE DEGREE/THROUGH APPROACH REQUIRED ALL PROJECT NEED A RISK MANAGEMENT PLAN HOW MUCH??? UP TO THE PROJECT MANAGEMENT TEAM TO DETERMINE EXACTLY HOW RM WILL BE CARRIED OUT
WHO IS INVOLVED IN RISK MANAGEMENT?	EVERYBODY AT A MINIMUM: PM, PM TEAM, KEY STAKEHOLDER *SCOPE AND PRIORITY WILL DRIVE NEED FOR VENDORS, CONSULTANTS, ORG MANAGEMENT, RISK PROFESSIONALS
WHAT DOES THE RISK MANAGEMENT PLAN CONTAIN (HIGH LEVEL)?	RM METHODOLOGY RISK ROLES & RESPONSIBILITIES RISK BUDGET & SCHEDULE TOLERANCE, THRESHOLDS, AUTHORITY *RISK CATEGORY
WHAT DOES THE RM METHODOLOGY CONTAIN?	DESCRIBES THE APPROACHES, TOOLS & TECHNIQUES RISK CATEGORIES COMMON LEXICON FOR RISK TERMINOLOGY PROBABILITY & IMPACT SCALES, DEFINITIONS & ESTIMATING TECHNIQUES *FORMATS FOR RISK REPORTING
WHAT DOES THE RM PLAN RESPONSIBILITIES FOR RISK ACTIVITIES CONTAIN?	RISK ROLES AS REQUIRED BY THE PROJECT RESPONSIBILITIES FOR RISK IDENTIFICATION, QUALITATIVE & QUANTITATIVE ANALYSIS, RISK RESPONSE PLANNING, RISK MONITORING
WHAT DOES THE RM PLAN RESPONSIBILITIES FOR RISK BUDGET, SCHEDULE , FREQUENCY OF RM ACTIVITIES CONTAIN?	ACTIVITIES NEEDED FOR RM RESOURCES & COST ALLOCATED TO RM & RISK ACTIVITIES--LATER DEFINED--INCORPORATED INTO PROJ COST BASELINES *FREQUENCY OF RM ACTIVITES
WHAT DOES THE RM PLAN FOR TOLERANCE, THRESHOLDS & AUTHORITY LEVELS	STAKEHOLDER RISK TOLERANCES TOLERANCE LEVELS & THRESHOLDS FOR RISK *DECISION-MAKING AUTHORITY LEVELS & ESCALATION PATHS
WHAT ARE RISK CATEGORIES?	GENERAL CLASSIFICATION THAT INDIVIDUAL RISK ARE ASSIGNED TO PART OF THE RM PLAN *HELP TO ORGANIZE RISK, SPOTTING TRENDS, AID IN RISK IDENTIFICATION & REPORTING
WHAT IS A RISK BREAKDOWN STRUCTURE?	*HIERARCHICAL, GRAPHICAL DISPLAY OF RISK CATEGORIES (LOOKS LIKE WBS)

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