SPM Chapter 11 Flashcards
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William Ibbs and Young H. Kwak's study revealed that the ____ industry had the lowest level of project management maturity in the area of risk management.
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information systems
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KLCI Research Group's 2001 survey revealed that ____ percent of the participants said they had procedures in place to identify and assess risk.
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97
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KLCI Research Group's 2001 survey revealed that ____ percent identified anticipating and avoiding problems as the primary benefit of risk management.
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80
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KLCI Research Group's 2001 survey revealed that ____ percent of the organizations surveyed had a Project Management Office.
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64
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KLCI Research Group's 2001 survey revealed that the most frequently cited benefit from software risk management practices is to ____.
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anticipate/avoid problems
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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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There are ____ major processes involved in risk management.
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six
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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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Monitoring and controlling risk
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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 are not effective.
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Fallback plans
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According to the Standish Group's success potential scoring sheet, ____ has the highest relative importance.
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user involvement
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"If the information technology project is to produce a new product or service, will it be useful to the organization or marketable to others?" applies to which risk category? ____
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Market risk
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"Will the project meet NPV, ROI, and payback estimates?" applies to which risk category? ____
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Financial risk
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"Is there a project champion?" applies to which risk category? ____
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People risk
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In a risk breakdown structure, competitors, suppliers, and cash flow are categories that fall under ____ risk.
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business
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Poor conflict management, poor project organization and definition of responsibilities, and absence of leadership are risk conditions associated with the ____ project management knowledge area.
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Human Resources
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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 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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A project manager can chart the probability and impact of risks on a ____.
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probability/impact matrix
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____ are/is a qualitative risk analysis tool, and in addition to identifying risks, it maintains an awareness of risks throughout the life of a project.
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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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____ 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 are a direct result of implementing a risk response.
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Secondary
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Risk management can have a(n) _____ impact on selecting projects, determining the scope of projects, and developing realistic schedules and cost estimates.
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positive
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A project ____ is an uncertainty that can have a negative or positive effect on meeting project objectives.
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risk
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Given that all projects involve ____ that can have negative or positive outcomes, the question is how to decide which projects to pursue and how to identify and manage project risk throughout a project's life cycle.
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uncertainty
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The idea of striving to balance risks and opportunities suggests that different organizations and people have different ____ for risk.
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tolerance
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____ is the amount of satisfaction or pleasure received from a potential payoff.
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Risk utility Risk tolerance
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The main output of the ____ process is the start of a risk register.
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identifying risks
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A(n) ____ documents the procedures for managing risk throughout the project.
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risk management plan
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____ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level.
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Contingency reserves Contingency allowances
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A(n) ____ is a hierarchy of potential risk categories for a project.
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risk breakdown structure
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Inadequate planning, poor resource allocation, poor integration management, and lack of post-project review are risk conditions associated with the ____ project management knowledge area.
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integration
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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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The basic concept of the ____ 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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____ based on risks that have been encountered in previous projects provide a meaningful template for understanding risks in a current project.
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Checklists
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System or process ____ are diagrams that show how different parts of a system interrelate.
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flowcharts
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A(n) ____ is a document that contains results of various risk management processes.
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risk register
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____ are indicators or symptoms of actual risk events.
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Triggers
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The ____ is the person who will own or take responsibility for the risk.
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risk owner
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____ are 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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Risk factors
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A(n) ____ is a list of risks that are low priority, but are still identified as potential risks.
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watch list
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____ is the 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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Many professionals use ____ to help make several common business decisions, such as determining break-even points based on different assumptions.
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sensitivity analysis
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Risk ____ involves accepting the consequences should a risk occur.
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acceptance
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Examples of risk ____ include using proven technology, having competent project personnel, using various analysis and validation techniques, and buying maintenance or service agreements from subcontractors.
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mitigation
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____ risks are risks that remain after all of the response strategies have been implemented.
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Residual
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Project teams sometimes use ____ unplanned responses to risk events when they do not have contingency plans in place.
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workarounds
