Chapter 17: Project Risk Management Flashcards
What is project risk management?
Indentify, assess and control
The process of identifying, assessing, and controlling risks throughout a project’s lifecycle.
Why is effective risk management important, when it comes to project management?
It ensures projects are completed on time, within budget, and to the desired quality standards.
When should risk management act as a gatekeeper?
Before launching non-trivial projects, especially in tier 2 and tier 3 firms.
What is often missing in project decision-making?
Which line of defense?
2LOD
What is the recommended frequency for carrying out updates on project risk monitoring?
Quarterly or semi annually.
What role do risk teams play in projects?
What would they normally be doing?
They assist with risk identification, mitigation plans, and regular assurance/reporting.
What is essential throughout the project life?
Cont…….
Continuous monitoring of risks with regular updates.
Is monitoring project interactions and interdependencies typically overlooked by firms, if so what impact may this have?
Ye, if one project experinces failures, its likley others that are linked will also, causing greater detriment.
What can shared resources create in projects?
SPF?
Single points of failure, leading to delays and project tasks.
What do mature organizations conduct post-delivery? Why?
Systematic debriefings and post-delivery evaluations, to log successes and failure so that they do not happen in subsequent projects.
Should the risk function be involved in all projects? if so where?
No they shouldnt, only in riskier projects.
What are common causes of project failures?
There are 8, try and list as many as possible.
- Invalid business case
- Insufficient quality attention
- Undefined outcomes
- Lack of stakeholder communication
- Role confusion
- Inaccurate estimation
- Inadequate planning
- Lack of control.
What does effective resource allocation require?
Tailoring the projext plans based on what.
Tailoring the risk function’s involvement based on project size and criticality.
What is the criteria that is being assesed in simple project rating?
- Budget
- Process
- People
- Assets impacted.
What indicates project complexity and risk?
The percentage of assets or people affected.
What should be conducted before project kick-off?
A risk identification and assessment workshop.
What should be maintained throughout the project lifecycle?
Continous what?
Continuous risk monitoring and regular updates.
What is a common cause of project delays?
Path dependency and multiple dependencies.
What should be included in a detailed budget estimate?
Both external and internal costs
What are examples key risk indicators (KRIs) for projects?
Project status, budget adherence, quality of deliverables, and stakeholder satisfaction.
What is crucial in IT projects?
The testing phase as a key control.
For most firms what are the 3 categories for a comprehensive approach for risk evaluation?
- Customers
- Regulatory Impact
- Reputation
