CHAPTER 11: MANAGING PROJECT RISK Flashcards
1
Q
ACCEPTANCE
A
- risk response
- both positive and negative risks
- usually for smaller projects
2
Q
AMBIGUITY RISKS
A
- uncertain, unclear
- difficult to predict
- e.g. new laws
3
Q
AVOIDANCE
A
- Risk response to avoid the risk
4
Q
BRAINSTORMING
A
- risk identif.
- most common
- risk identification
- PT and Exp
5
Q
BUSINESS RISK
A
- may have negative or positive outcome
- e.g. phaseoverlapping
6
Q
CARDINAL SCALES
A
- numerical value
- identify probability and impact
- ranking approach
- 0.01 very low –> 1.0 certain
7
Q
CHECKLISTS
A
- risk identification.
- cost eff.
- quick
8
Q
DATA PRECISION
A
- consideration of risk ranking scores
- takes into account bias, accuracy of data submitted, reliability of the nature of the data submitted
9
Q
DECISION TREE
A
- determine which of two or more decisions is best
- examines cost and benefits of each decisions outcome
- weighs prob of success for each decision
10
Q
FELPHI TECHNIQUE
A
- anonymous survey
- query exp about foreseeable risks
- project, phase or comp
- analyzed by 3rd party and then circulated to exp
- without fear of backlash or offense
- gain consensus on project risks
11
Q
ENHANCING
A
- risk response
- enhance condition
- ensure a positive risk is likely to happen
12
Q
ESCALATING
A
- risk response
- positive and negative risk events
- outside of PM authority to act on
13
Q
EXPECTED MONETARY VALUE (EMV)
A
- monetary value of risk exposure based on risks probability and impact
- quantities risk exposure
14
Q
EXPLOIT
A
- risk response
- takes advantage of positive risks
15
Q
EXTERNAL RISKS
A
- outside of PJ but affect it
- e.g. legal issues, weather etc.
- also Force makeup like quakes, tornadoes floods etc. - disaster recovery
16
Q
FLOWCHARTS
A
- System or process charts
- show relationship between components and how overall project works
- ident. Risk between systems and components
17
Q
INFLUENCE DIAGRAM
A
- charts out decision problem
- identifies all elements, variables decisions objectives
- how each factor influences the other
18
Q
ISHIKAWA DIAGRAM
A
- cause and effect diagram
- fishbone
- find the root cause of factors causing a risk
19
Q
LOW PRIORITY RISK WATCHLIST
A
- low priority risks
- identified for periodic monitoring
20
Q
MITIGATION
A
- Risk response effort
- reduce prob. And impact of an identified risk in the project
21
Q
MONTE CARLO TECHNIQUE
A
- simulation technique using computer SW
- simulate PJ
- use values from all possible variables
- predict most likely model
22
Q
ORDINAL SCALES
A
- ranking approach
- identifies and ranks the risks from very high to unlikely
23
Q
ORGANIZATIONAL RISKS
A
- e.g. unreasonable cost, time and scope expectations
- poor prio
- inadequate funding or competition with other PJ
24
Q
PESTLE
A
- prompt list for risk identification
- Political, economic, social, technological, legal, environmental
25
PROBABILITY AND IMPACT MATRIX
- matrix
- ranks risk according to impact and probability of risk event happening
- used in quantities and qualitative analysis
26
PROJECT MANAGEMENT RISKS
- risks that deal with faults in the PM
- e.g. poor PM, unacceptable work results
- unsuccessfully allocation of time, recourses and scheduling
27
PURE RISKS
- only negative outcomes
- e.g. loss of life, theft, fire etc.
28
QUALITATIVE RISK ANALYSIS
- qualifies risks identified
- priorize risks based on probability of occurrence and impact on PJ should they occur
29
QUANTITATIVE RISK ANALYSIS
- numerically asses probability and impact
- creates overall risk score for the PJ
- more in depth than quali
- several tools
30
RAG RATING
- red, amber, green
- ordinal scale
- capture probability, impact and risk score
31
RESIDUAL RISK
- expected to remain after the risk response
32
RISK
- uncertain condition or event that can have positive or negative impact on project outcome
33
RISK IDENTIFICATION
- systematic process
- combing thorough PM plan, WBs etc
- identify as many risks as possible
34
RISK MANAGEMENT PLAN
- PM subsidiary plan
- defines how risks will be identified, analyzed, responded to and monitored
- defines iterative risk management process
35
RISK MANAGEMENT PLANNING
- agreed approach to the management of the risk processes
36
RISK OWNERS
- Responsible for monitoring and responding to an identified risk within the project
37
RISK REGISTER
- project plan component
- contains all information related to risk management activities
- updated to reflect status, progress and nature of risks
38
RISK REPORT
- explains overall PJ risks
- provides summaries about individual PJ risks
39
RISK RESPONSE AUDIT
- Audit to test the validity of established risk responses
40
RISK RESPONSIBILITIES
- level of ownership an individual or entity has over a PJ risk
41
RISK SCORE
- based on each risks prob and impact
- qual and quant analysis
42
ROOT CAUSE IDENTIFICATION
- find out why a risk event may be occurring
- casual factors for risk event
- how events can be mitigated or eliminated
43
SECONDARY RISK
- new risks created as a result of risk response
44
SENSITIVITY ANALYSIS
- quantitative risk analysis tool
- examine which risk has largest impact on project success
45
SHARING
- risk response
- shares the advantages of positive risk
46
SWOT ANALYSIS
- examine PJ from perspective of each Characteristic, Strength, Weakness, Opportunities and Threats
47
TECHNICAL, QUALITY OR PERFORMANCE RISK
- risks associated with new u proven or complex technologies
- Change in technology
- quality risk levels set for expectations of impractical quality and performance
48
TECOP
- prompt list for risk identification
- examine technical, environmental, commercial, operatio and political factors of the PJ
49
TRANSFERENCE
- risk response
- transfers ownership of risk to another party
- e.g. insurance or licensed contractors
50
VARIABILITY RISKS
- type of risk based on variations that occur in the project
- e.g. production, number of quality erros or the weather
51
VUCA
- Prompt list used in risk identification
- examines volatility, uncertainty, complexity, ambiguity of risk factors
