Project Management Chapter 11 – Flashcards
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Risk utility rises at a decreasing rate for a _____ person.
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risk-averse
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Those who are _____ 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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_____ involves deciding how to approach and plan the 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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_____ involves prioritizing risks based on their probability and impact of occurrence.
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Performing qualitative risk analysis
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_____ involves numerically estimating the effects of risks on project objectives.
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Performing quantitative risk analysis
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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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Identifying risks is a subprocess of the _____ process of project risk management.
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planning
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Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.
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planning
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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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Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.
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procurement
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_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.
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Interviewing
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A(n) _____ represents 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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The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.
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probability/impact matrix
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_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.
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Top Ten Risk Item Tracking
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A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
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decision tree
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_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.
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Monte Carlo
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What is the first step in a Monte Carlo analysis?
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Assess the range for the variables being considered.
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A _____ is a technique used to show the effects of changing one or more variables on an outcome.
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sensitivity analysis
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_____ involves eliminating a specific threat, usually by eliminating its causes.
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Risk avoidance
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_____ involves 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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_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.
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Risk mitigation
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_____ involves doing whatever you can to make sure the positive risk happens.
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Risk exploitation
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_____ involves allocating ownership of the risk to another party.
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Risk sharing
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_____ involves 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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_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.
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Risk acceptance
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_____ risks refer to those that are direct results of implementing risk responses.
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Secondary
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_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.
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Workarounds
