Chapter 6

Question 1

avoiding risk

Answer 1

Elimination of the risk cause before the project begins.

Question 2

budget reserve

Answer 2

Reserve set up to cover identified risks that may occur and influence baseline tasks or costs. These reserves are typically controlled by the project manager and the project team. See management reserve.

Question 3

change management system

Answer 3

A defined process for authorizing and documenting changes in the scope of a project.

Question 4

contingency plan

Answer 4

A plan that covers possible identified project risks that may materialize over the life of the project.

Question 5

executing stage

Answer 5

The third stage of the project life cycle during which the project team does the work outlined in the project plan by following its project execution plan.

Question 6

management reserve

Answer 6

A percentage of the total project budget reserved for contingencies. The fund exists to cover unforeseen problems—not unnecessary overruns. The reserve is designed to reduce the risk of project delays. Management reserves are typically controlled by the project owner or project manager.

Question 7

mitigating risk

Answer 7

Action taken to reduce the likelihood that an undesirable event will occur and/or the impact the event will have on the project.

Question 8

opportunity

Answer 8

An event that can have a positive impact on project objectives.

Question 9

project execution plan (PEP)

Answer 9

A set of guidelines (checklists) that guide the project manager to manage, monitor, and control the project work in the executing stage.

Question 10

risk

Answer 10

The chance that an undesirable project event will occur and the consequences of all its possible outcomes.

Question 11

risk breakdown structure

Answer 11

A hierarchical depiction of the identified project risks, arranged by risk category and subcategory, that identifies the various areas and causes of potential risks.

Question 12

risk profile

Answer 12

A list of questions that address traditional areas of uncertainty on a project.

Question 13

risk register

Answer 13

A document that details all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status.

Question 14

risk severity matrix

Answer 14

A tool used to assess the impact of risks on a project.

Question 15

scenario analysis

Answer 15

The easiest and most commonly used technique for analyzing risks.

Question 16

time buffer

Answer 16

A contingency amount of time for an activity to cover uncertainty—for example, availability of a key resource or merge event.

Question 17

transferring risk

Answer 17

Shifting responsibility for a risk to another party.