Project Risk Management – Flashcards
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Brainstorming
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A technique by which a group attempts to generate ideas or to find a solution for a specific problem by amassing ideas spontaneously and without judgement
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Contingency Allowance
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Provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level; also called contingency reserves
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Contingency Plans
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Predefined actions that the project team will take if an identified risk event occurs
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Contingency reserves
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Provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level; also called contingency allowance
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Decision Tree
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A diagramming analysis technique used to help select the best course of action when future outcomes are uncertain
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Delphi Technique
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An approach used to derive a consensus among a panel of experts to make predictions about future developments
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Expected Monetary Value
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The product of a risk event probability and the risk event's monetary value
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Fallback plans
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Plans developed for risks that have a high impact on meeting project objectives and implemented if attempts to reduce the risk are not effective
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Flowcharts
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Diagrams that show how various elements of a system relate to each other
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Influence Diagram
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A diagram that represents decision problems by displaying essential elements, including decisions, uncertainties, and objectives, and how they influence each other
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INterviewing
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A fact-finding technique that is normally done face to face, but can also occur through phone calls, emails, or instant messaging
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Known Risks
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Risks that the project team has identified and analyzed and that can be managed properly
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Management reserves
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Funds held for unknown risks
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Monte Carlo Analysis
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A risk quantification technique that simulates a model's outcome many times to provide a statistical distribution of the calculated results
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Probability/Impact Matrix or chart
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A matrix or chart that shows the relative probability of a risk occurring and the relative impact of the risk
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Residual Risks
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Risks that remain after all of the response strategies have been implemented
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Risk
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An uncertainty that can have a negative or positive effects on meeting project objectives
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Risk Acceptance
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Accepting the consequences if a risk occurs
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Risk Appetite
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The degree of uncertainty an entity is willing to take on in anticipation of a reward
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Risk-averse
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Having a low tolerance for risk
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Risk Avoidance
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Eliminating a specific threat or risk, usually by eliminating its causes
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Risk Breakdown structure
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A hierarchy of potential risk categories for a project
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Risk Enhancement
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Changing the size of an opportunity by identifying and maximizing key drivers of the positive risk
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Risk Events
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Specific uncertain events that may occur to the detriment or enhancement of the project
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Risk Exploitation
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Doing whatever you can to make sure a positive risk happens
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Risk Factors
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Numbers that represent the overall risk of specific events, given their probability of occurring and the consequences to the project if they do occur
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Risk Management Plan
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A plan that documents the procedures for managing risk throughout a project
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Risk Mitigation
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Reducing the impact of a risk event by reducing the probability of its occurence
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Risk-Neutral
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A balance between risk and payoff
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Risk Owner
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The person who will take responsibility for a risk and its associated response and tasks
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Risk Register
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A document that contains results of various risk management processes, often displayed in a table or spreadsheet format
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Risk-seeking
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Having a high tolerance for risk
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Risk sharing
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Allocating ownership of a risk to another party
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Risk Tolerance
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The maximum acceptable deviation an entity is willing to accept on a project or business objectives as the potential impact
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Risk Transference
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Shifting the consequence of a risk and responsibility for its management to a third party
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Risk utility
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The amount of satisfaction or pleasure received from a potential payoff
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Runaway Projects
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Projects that have significant cost or schedule overruns
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Secondary Risks
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Risks that are a direct result of implementing a risk response
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Sensitivity Analysis
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A technique used to show the effects of changing one or more variables on an outcome
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Top Ten Risk Item Tracking
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A qualitative risk analysis tool for identifying risks and maintaining an awareness of risks throughout the life of a project
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Triggers
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Indications for actual risk events
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Unknown Risks
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Risks that cannot be managed proactively because they have not been identified and analyzed
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Watch list
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A list of risks that have low priority but are still identified as potential risks
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Workarounds
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Unplanned responses to risk events when no contingency plans are in place
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Planning Risk Management
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Involves deciding how to approach and plan risk management activities for the project
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Identifying Risks
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Involves determining which risks are likely to affect a project and documenting the characteristics of each
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Performing Qualitative Risk Analysis
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Involves prioritizing risks based on their probability and impact of occurance
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Performing Quantitative Risk Analysis
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Involves numerically estimating the effects of risks on project objectives
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Planning Risk Responses
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Involves taking steps to enhance opportunities and reduce threats to meeting project objectives
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Controlling Risks
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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
