Module 20 Terms

Question 1

risk

Answer 1

In project management, risk is defined as any uncertainty in an event or condition that may impact the project.

Question 2

risk appetite

Answer 2

Risk Appetite is the degree of uncertainty an entity is willing to take on in anticipation of a reward.

Question 3

risk tolerance

Answer 3

Risk Tolerance is the degree, amount, or volume of risk that an organization or individual will withstand.

Question 4

risk threshold

Answer 4

Risk Threshold refers to measurements 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 (PMBOK, 2015).

Question 5

risk management

Answer 5

Risk management is the proactive planning for risk and opportunities that occur at most steps of the project management process from the time you define the project and create the charter to all the project management planning through execution of the project.

Question 6

risk register

Answer 6

Once you identify and document the risks, create a prioritized chart called a risk register. The risk register lists all risks (external, technical, or organizational) and assigns scores for probability and severity. The combined Probability Severity (P*S) score helps you prioritize the risks appropriately. In addition, the risk register lists action plans or risk management options for each risk, as well as the person responsible for responding to the risk.

Use the risk register to document your findings during planning and add them on a chart for monitoring and control. Your goal is for the register to tell you which risks to watch for and how to respond. The highest score of P*S is the highest priority for risk monitoring.