Ch. 11 Flashcards
A negative impact is known as a ______, while a positive impact is known as an ______.
- threat
- opportunitsy
Who should be involved in identifying potential risks for the project?
Everyone!
It is a good practice to encourage wide participation in risk management activities. One reason is that everyone brings a different perspective, and the more perspectives that are considered, the more likely it is that important risks will be uncovered early. Another good reason is that people often resist when they are told what to do but work with great enthusiasm if they participate in the planning. The surest way to get the various project stakeholders to buy into a risk management approach is to involve them in risk management planning right from the beginning. Potential critics can be turned into allies if their concerns are included.
The risk management plan should define who is responsible for each risk manage- ment activity. On small projects, often the project manager or a core team member is responsible for most risk activities. On larger projects, the plan can be more elaborate and subject matter experts may be involved at many points.
Who should be involved in identifying potential risks for the project?
Everyone!
It is a good practice to encourage wide participation in risk management activities. One reason is that everyone brings a different perspective, and the more perspectives that are considered, the more likely it is that important risks will be uncovered early. Another good reason is that people often resist when they are told what to do but work with great enthusiasm if they participate in the planning. The surest way to get the various project stakeholders to buy into a risk management approach is to involve them in risk management planning right from the beginning. Potential critics can be turned into allies if their concerns are included.
The risk management plan should define who is responsible for each risk manage- ment activity. On small projects, often the project manager or a core team member is responsible for most risk activities. On larger projects, the plan can be more elaborate and subject matter experts may be involved at many points.
List and describe the four different categories of project success measures.
Answer already in one of the previous chapters
During which stage of a project are most risks typically uncovered?
More project risks are typically uncovered early in the life of a project. However, the cost per risk discovered early is often less since there will be an opportunity and time to make changes to the project plan. Risks discovered late in a project can prove to be very expensive. Experienced project managers work hard to uncover risks as early in the project as feasible.
Relative to the project’s life cycle, when is the cost per risk discovered typically highest?
Closing
When a project manager is gathering information about risks, is it a good idea for her to set a limit on the number of risks that will be considered? Why or why not?
No, because…
What does a SWOT analysis examine?
- Strengths
- Weaknesses
- Opportunities
- Threats
What is a root cause analysis?
Root cause analysis (RCA) is the process of discovering the root causes of problems in order to identify appropriate solutions.
Name three different ways to categorize project risks.
- Timing of risk
- Impact on project objective
- Knowledge about risk
A key supplier for your project has not been returning your calls or responding to your emails. This is an example of a(n) __________, which indicates that a risk is likely to occur.
trigger condition
What two main criteria are used when evaluating risks during qualitative risk analysis?
- Probability
- Impact
Should every risk, no matter how major or minor, have a contingency plan created to address it? Why or why not?
Making contingency plans for even minor risks is a terrible waste of time and draws focus away from the critical risks.
Are both qualitative and quantitative risk analyses used on all projects? Why or why not?
While all projects use qualitative risk analysis, quantitative risk analysis is used only when necessary and only on selected risks. Bigger, more complex, riskier, and more expensive projects often can benefit from the additional rigor of these more structured techniques.
What is an example of transferring risk?
- Insurance
- Contractual Conditions
- External Expert who is accountable for the risk
Sometimes, a decision is made to transfer a part of or an entire project risk to another organization. One common means to do so is through insurance. Project insurance works like any other type of insurance: a premium is paid to another organization, which will assume a level of risk. A second transfer strategy deals with the type of contract used. An owner wishing to transfer risk to a developer will want to use a fixed-price contract. A third risk transfer strategy is to hire an expert to perform the risk and to hold that person accountable.
