Risk Management

Question 1

What is a risk?

Answer 1

An uncertainty that can have a
negative or positive effect on meeting project objectives

Question 2

What is the goal of risk management ?

Answer 2

The goal of project risk management is to minimize potential negative risks
while maximizing potential positive risks

Question 3

What is risk utility?

Answer 3

• Risk utility or risk tolerance is the amount of satisfaction or pleasure
  received from a potential payoff

Question 4

Define Contingency Plans.

Answer 4

Contingency plans are predefined actions that the project team will take if an
identified risk event occurs

Question 5

What is a fall back plan?(Plan A)

Answer 5

Fallback plans 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

Question 6

What are management reserves?

Answer 6

Management reserves or allowances are provisions held by the project
sponsor or organization to reduce the risk of cost or schedule overruns to an
acceptable level

Question 7

List some risk identification tools and techniques?

Answer 7

Brainstorming
* Interviewing
* SWOT analysis

Question 8

List the categories of risk management?

Answer 8

• Market risk
• Financial risk
• Technology risk
• People risk
• Structure/process risk
• Environmental risk

Question 9

What is a risk register ? (contains risk events)

Answer 9

A document that contains the results of various risk
management processes and that is often displayed in a table or
spreadsheet format
* A tool for documenting potential risk events and related
information