4.5.11 Flashcards
Define risk and opportunity.
Risk and opportunity includes the identification, assessment, response planning and implementation and control of risks and opportunities around projects.
Purpose of risk management?
- To increase confidence in achieving the desired outcomes • To minimise the occasions on which project budgets or timescales are exceeded • Effectively constrain threats to acceptable levels • Take informed decisions about exploiting opportunities.
Purpose of risk management?
- To increase confidence in achieving the desired outcomes • To minimise the occasions on which project budgets or timescales are exceeded • Effectively constrain threats to acceptable levels • Take informed decisions about exploiting opportunities.
Difference between Threat and Opportunities.
Threat - An uncertain even that could have a negative impact on objectives or benefits if it occurs.
Opportunity - An uncertain event that could have a favourable impact on objectives or benefits if it occurs.
What is included in a risk management plan?
Methodology and process Roles & responsibilities Budgeting Timing - when risk assessment carried out Analysis and scoring methods Risk thresholds – Escalation routes Reporting format & timing Tracking & review
List the risk management process measures.
• Defines how risks are dealt with and by whom • Provides the mechanism to achieve continual improvement • Ensures that contingency is calculated against a quantified risk profile • Defines a common approach to risk management in line with PMP • Provides a common reference point for audit and assurance • Makes sure that sponsors have a clear risk perspective and confidence in the information provided
List the risk management process.
Initiate - scope, objectives, roles, tool, process.
Identify - brainstorming, checklist ,prompt list, interview with clients and stakeholders, assumptions analysis.
Assess
Plan
Implement Responses
What is the risk severity equation?
SEVERITY (S) = PROBABILITY X IMPACT
Risks could have an impact
on:
- Cost
- Time
- Resources
- Quality
- Requirements
- Health and Safety
- Benefits
- Reputation
- Other Risks.
How to calculate Expected Monitory Value (EMV)
EMV = Probability x Impact Cost
Risk reponse for Threats?
Avoid
Transfer
Reduce
Accept
Risk response for opportunities
Exploit
Enhance
Share
Reject
