Flashcards
11 PROJECT RISK MANAGEMENT
Cards in this deck (48)
- 111.1 Plan Risk ManagementProcess of defining how to conduct risk management activities for a
project. - 211.2 Identify RisksThe process of determining which risks may affect the project and documenting
their characteristics. - 311.3 Perform Qualitative Risk Analysis*Prioritizing risks for further analysis or action
*Assessing and combining their probability of occurrence and impact. - 411.4 Perform Quantitative Risk Analysis*Numerically analyzing the effect of identified risks on overall project objectives.
- 511.5 Plan Risk Responses*Developing options and actions to enhance opportunities and
to reduce threats to project objectives - 611.6 Control Risks*Implementing risk response plans *Tracking identified risks
*Monitoring residual risks
*Identifying new risks
*Evaluating risk process effectiveness throughout the project. - 7Project risk isan 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 - 8Known risks are thosethat have been
identified and analyzed, making it possible to plan responses for those risks - 9Unknown riskscannot be managed proactively and therefore
may be assigned a management reserve. A negative project risk that has occurred is considered an issue. - 10Overall project risk representsthe 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. - 11Risk appetite*Degree of uncertainty an entity is willing to take on in anticipation of a reward.
- 12Risk tolerance*Degree, amount, or volume of risk that an organization or individual will
withstand. - 13Risk thresholdwhich 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. - 14Positive and negative risks are commonly referred to asopportunities and threats
- 15Participants in risk identification activities may include the followingproject 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. - 16The 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. - 17Risk probability assessment investigates thelikelihood that each specific risk will occur.
- 18Risk 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. - 19Risk 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. - 20Perform 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 - 21Other 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. - 22WHAT DOES THE PROJECT RISK MANAGEMENT PLAN CONTAIN?*IDENTIFIES, EVALUATES, RESPONDS TO AND MONITORS PROJECT RISK
- 23WHAT 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 - 24WHAT 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 - 25*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 - 26WHAT 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 - 27WHAT 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 - 28WHAT 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 - 29WHAT 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 - 30WHAT IS FALL BACK PLAN?*WHAT ACTIONS WILL BE TAKEN IF CONTINGENCY PLAN PROVES INEFFECTIVE
- 31PEOPLE/COMPANY: RISK TOLERANCE/RISK SEEKING?*WILLINGNESS TO ACCEPT RISK EVENT WHEN BENEFIT DOESN'T SEEM WORTH THE IMPACT
- 32RISK TOLERANCE/RISK AVERSE?*TENDENCY TO AVOID RISK EVEN WHEN THE AWARD OUTWEIGHS THE POTENTIAL NEG IMPACT
- 33RISK TOLERANCE: RISK NEUTRAL*LOGICAL BALANCED APPROACH THAT IS WEIGHTED AGAINST THE PROS AND CONS OF RISK
- 34WHAT 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 - 35RISK ROLES & RESPONSIBILITIES: PM*OVERALL RISK MANAGEMENT
*ENSURING IT'S PROPERLY COORDINATED WITH OTHER PM ACTIVITIES - 36RISK 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 - 37RISK 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 - 38RISK 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 - 39WHAT 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 - 40HOW 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 - 41WHO 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 - 42WHAT DOES THE RISK MANAGEMENT PLAN CONTAIN (HIGH LEVEL)?*RM METHODOLOGY
* RISK ROLES & RESPONSIBILITIES
*RISK BUDGET & SCHEDULE
*TOLERANCE, THRESHOLDS, AUTHORITY
*RISK CATEGORY - 43WHAT 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 - 44WHAT 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 - 45WHAT 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 - 46WHAT DOES THE RM PLAN FOR TOLERANCE, THRESHOLDS & AUTHORITY LEVELS*STAKEHOLDER RISK TOLERANCES
* TOLERANCE LEVELS & THRESHOLDS FOR RISK
*DECISION-MAKING AUTHORITY LEVELS & ESCALATION PATHS - 47WHAT 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 - 48WHAT IS A RISK BREAKDOWN STRUCTURE?*HIERARCHICAL, GRAPHICAL DISPLAY OF RISK CATEGORIES (LOOKS LIKE WBS)
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- PMP Project Management Flashcards on 11 PROJECT RISK MANAGEMENT, created by kat atkins on 25/03/2017.
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- Created by miguelabascal · Jul 13, 2013
- Copied by kat atkins · Mar 25, 2017
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