cis 464 chp 11 – Flashcards
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the possibility of loss or injury
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risk
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involves understanding potential problems that might occur on the project and how they might impede project success.
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Project risk management
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is an uncertainty that can have a negative or positive effect on meeting project objectives.
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project risk
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which is the degree of uncertainty an entity is willing to take on, in anticipation of a reward.
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risk appetite
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, which is the maximum acceptable deviation an entity is willing to accept on the project or business objectives as the potential impact....
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risk tolerance
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is the amount of satisfaction or pleasure received from a potential payoff.
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Risk utility
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more payoff or money is at stake, a person or organization gains less satisfaction from the risk, or has lower tolerance for the risk.
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risk-averse
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have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
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risk-seeking
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A person achieves a balance between risk and payoff.
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risk-neutral
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is sometimes used to describe risks that the project team has identified and analyzed.
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known risks
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that have not been identified and analyzed, cannot be managed.
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unknown risks
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involves deciding how to approach and plan risk management activities for the project.
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Planning risk management
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involves determining which risks are likely to affect a project and documenting the characteristics of each.
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Identifying risks
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analysis involves prioritizing risks based on their probability of occurrence and impact.
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Performing qualitative risk
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analysis involves numerically estimating the effects of risks on project objectives.
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Performing quantitative risk
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involves taking steps to enhance opportunities and reduce threats to meeting project objectives.
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Planning risk responses
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involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.
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Controlling risk
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documents procedures for managing risk throughout the project
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risk management plan
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are predefined actions that the project team will take if an identified risk event occurs.
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Contingency plans
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are developed for risks that have a high impact on meeting project objectives and are put into effect if attempts to reduce the risk do not work.
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Fallback plans
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are funds included in the cost baseline that can be used to mitigate cost or schedule overruns if known risks occur.
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Contingency reserves or contingency allowances
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are funds held for unknown risks that are used for management control purposes.
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Management reserves
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is a hierarchy of potential risk categories for a project.
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risk breakdown structure
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is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment.
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Brainstorming
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is to derive a consensus among a panel of experts who make predictions about future developments.
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Delphi technique
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is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or virtual discussions.
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Interviewing
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often results in identifying even more potential risks for a project.
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Root cause analysis
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decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
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influence diagram
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a document that contains results of various risk management processes; it is often displayed in a table or spreadsheet format.
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risk register
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refer to specific, uncertain events that may occur to the detriment or enhancement of the project.
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Risk events
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indicators or symptoms of actual risk events.
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triggers
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which lists the relative probability of a risk occurring and the relative impact of the risk occurring.
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probability/ impact matrix or chart
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—numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur.
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calculating risk factors
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is a qualitative risk analysis tool. In addition to identifying risks, it maintains an awareness of risks throughout the life of a project by helping to monitor risks.
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Top Ten Risk Item Tracking
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is a list of risks that have low priority but are still identified as potential risks.
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watch list
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is a diagramming analysis technique used to help select the best course of action when future outcomes are uncertain.
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A decision tree
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product of a risk event probability and the risk event's monetary value.
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Expected monetary value (EMV)
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simulates a model's outcome many times to provide a statistical distribution of the calculated results.
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Monte Carlo analysis
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s to see the effects of changing one or more variables on an outcome.
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sensitivity analysi
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eliminating a specific threat, usually by eliminating its causes.
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Risk avoidance
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accepting the consequences if a risk occurs.
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Risk acceptance
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shifting the consequence of a risk and responsibility for its management to a third party.
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Risk transference
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reducing the impact of a risk event by reducing the probability of its occurrence.
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Risk mitigation
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doing whatever you can to make sure the positive risk happens.
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Risk exploitation
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allocating ownership of the risk to another party.
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Risk sharing
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changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.
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Risk enhancement
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also applies to positive risks when the project team does not take any actions toward a risk.
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Risk acceptance
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are risks that remain after all of the response strategies have been implemented.
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Residual risks
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are a direct result of implementing a risk response.
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Secondary risks
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—unplanned responses to risk events—
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workarounds
