Ch10 Flashcards
___________ is the art and science of
identifying, assigning, and responding to risk
throughout the life of a project and in the best interests
of meeting project objectives
Project risk management
T/F: Risk management is often overlooked on projects, but it
can help improve project success by helping select
good projects, determining project scope, and
developing realistic estimates
T
Fact: Study by Ibbs and Kwak show how risk management is
neglected, especially on IT projects
A dictionary definition of ______ is “the possibility
of loss or injury”
risk
________ ____ involves understanding potential
problems that might occur on the project and
how they might impede (delay or stop) project
success
Project risk
Fact: Risk management is like a form of insurance; it
is an investment
T/F: The goal of project risk management is to minimize potential risks
while maximizing potential opportunities.
T
Project Risk Management processes include
Risk management planning
Risk identification
Qualitative risk analysis
Quantitative risk analysis
Risk response planning
Risk monitoring and control
__________________ deciding how to approach and plan the risk management activities for the project
Risk management planning:
_______________: determining which risks are likely to affect a project and documenting their characteristics
Risk identification
______________: characterizing and analyzing risks and prioritizing their effects on project objectives
Qualitative risk analysis
____________: measuring the probability and consequences of risks
Quantitative risk analysis
______________: taking steps to enhance opportunities and reduce threats to meeting project objectives
Risk response planning
____________________: monitoring known risks, identifying new risks, reducing risks, and evaluating the effectiveness of risk reduction
Risk monitoring and control
The main output of risk management planning is a
risk management plan
Fact:
• The project team should review project
documents and understand the organization’s
and the sponsor’s approach to risk
• The level of detail will vary with the needs of
the project
__________ are predefined actions that the
project team will take if an identified risk event
occurs
Contingency plans
____________are developed for risks that have a
high impact on meeting project objectives
Fallback plans
____________________ are provisions
held by the project sponsor that can be used to
mitigate cost or schedule risk if changes in scope or
quality occur
Contingency reserve or allowances
Categories of Risk
Market risk
Financial risk
Technology risk
_________-: Will the new product be useful
to the organization or marketable to others?
Will users accept and use the product or
service?
Market risk
_______________Can the organization afford to
undertake the project? Is this project the best
way to use the company’s financial resources?
Financial risk:
______________: Is the project technically
feasible? Could the technology be obsolete
before a useful product can be produced?
Technology risk
_____________ is the process of understanding what
potential unsatisfactory outcomes are associated with a
particular project
Risk identification
