CH 9 Flashcards
(30 cards)
What is project risk management?
The process of identifying, assessing, and responding to unexpected risks that may affect a project’s goals and progress.
What is the goal of project risk management?
To minimize negative risks and maximize positive risks.
How is risk management different from crisis management?
Risk management is proactive, while crisis management is reactive.
Define “project risk.”
An uncertainty that can have a positive or negative effect on project objectives.
What are positive risks?
Risks that bring opportunities and beneficial outcomes to the project.
Give an example of a positive risk response strategy.
Risk exploitation – ensuring the opportunity happens.
Name the six main processes of project risk management.
Planning risk management, identifying risks, qualitative risk analysis, quantitative risk analysis, planning risk responses, monitoring and controlling risks.
What is a risk management plan?
A document outlining procedures for managing risk throughout a project.
What are contingency plans?
Predefined actions for identified risks if they occur.
What are fallback plans?
Backup plans for high-impact risks if the main response fails.
What are contingency reserves?
Provisions to reduce risk of cost or schedule overruns.
What is the purpose of identifying risks?
To understand what events could harm or benefit the project.
List some tools for identifying project risks.
Brainstorming, interviewing, SWOT analysis, checklist, assumption analysis, RBS, questionnaires.
What is a Risk Breakdown Structure (RBS)?
A hierarchy of potential risk categories used for identification.
What is the goal of qualitative risk analysis?
To prioritize risks based on their probability and impact.
What is a probability/impact matrix?
A chart showing the likelihood and impact of risks.
What is “Top Ten Risk Item Tracking”?
A tool for ongoing risk awareness and resolution tracking.
When is quantitative risk analysis typically used?
In large, complex projects with advanced technology.
Name a technique used in quantitative risk analysis.
Expert judgment or data modeling techniques.
What is risk avoidance?
Eliminating a threat or its cause.
What is risk transference?
Shifting responsibility and consequences to a third party.
What is risk mitigation?
Reducing the probability or impact of a risk.
What is risk acceptance?
Acknowledging the risk and dealing with consequences if it occurs.
What is risk sharing?
Allocating partial risk ownership to another party.
