Chapter 8 Flashcards
(30 cards)
Risks ?
The effect of uncertainty on objectives
uncertain event who occurrences can influence negatively or positively, the achievement of project objectives
How can a risk be positive ?
Can have the potential to generate a return
-does not always benefit a project if it’s managers are entirely risk averse
Downside risk ?
Jeopardises achievement of project objectives
Upside risk ?
Assists achievement of project objectives
Risk identification?
entails determining which risks (downside) may adversely affect the project objective
Approaches to identifying risk ?
- for each risk identified, the potential impacts must be determined
- easier to identify risks for near term efforts over longer term projects
as project progresses team can identify new risks / impacts of previously identified risks and info becomes clearer
Brainstorming ?
Involve all key team members in identifying risks that would negatively affect project objectives
- each member brings his/her experience /insight to comprise the risk list
- common sense / reason must prevail when identifying risks (likely to occur or significant impact)
Risk categories examples?
Grouping potential risks by topic
- Technical
- Schedule
- Cost
- Human Resources
- External
- Sponsor / customer
Historical information importance?
If post-project evaluations are undertaken from completed projects , they could be good source for identifying possible risks as well as getting ingot about how to address risks if the reoccur
Analysing risks ?
- Aims to generate more info about identified risk
- aims to reveal probable causes and in incidental impacts related to risk
Potential risks should include ?
- at least one cause and one impact
Risk cause ?
Gives rise to risk-good knowledge of cause can help team- est how likely risk is to occur
Risk impact ?
Effect of risk would cause if occurs
Knowing possible impacts can help to est its severity or extent to which it would affect the achievement of project objectives
Evaluating risks?
determining the likelihood that a risk will occur and degree of impact the event will have on P objectives
Rate from high /medium /low (made by P manager and team members)
- based on degree of impact and likelihood = what’s prioritised
If risk is on critical path should get highway priority (greatest impact on SCHED)
First step in evaluating risks ?
Develops a risk response plan
Define RISK RESPONSE PLAN (downside risks) ?
defined set of actions to prevent / reduce likelihood or to implement if risk occurs to mitigate impact
Can be to avoid, mitigate , accept, share the risk — these options should be in sync with actions to terminate , treat , take or transfer the risk
RISK RESPONSE PLAN involves ?
- action plan to reduce likelihood of impact of each risk
- establish trigger points for when to implement actions to each risk
- assign responsibility to individuals for implementing RRP
-include TRIGGER POINT / WARNING FLAG (when to respond)
4 T Response options?
-
AVOIDANCE (terminating)
Eliminate risk by choosing alt course of action -
MITIGATING (treating)
Taking action to reduce likelihood to occur/ reduce impact -
ACCEPTING (taking)
Embracing it (risk is unavoidable) no actions need to be taken deliberately -
SHARING (transferring)
Intention to reduce risk impact of occurs
Approaches to identify risks ? (6)
- Categorise risks
- Assess risks
- Prioritise risks
- Prepare risk response plan
- Develops risk assessment matrix
- Control risks
Risk assessment matrix ?
Tool for assessing/ managing risks (risk register)
includes potential risks / potential impact /likelihood of occurrence and response plan
Control risks ?
- implementing RRP and monitoring risks
- when should RRP be implemented (trigger point reached)
- Risk monitoring
- project meetings for regular reviewing / updating / addressing risk
- helpful to track / document which risks occurred and their impacts
When should RRP be implemented (trigger point reached) ?
- implementing RRP requires additional funds / resources/ working overtime / additional materials
-P prices / budgets should include contingency reserves to pay for additional costs for implementing RRP
RISK MONITORING?
regulatory tracking of risks / reviewing risks assessment matrix throughout P
- determine any changes to likelihood/ impact of any risks
- factors can determine if a risk has + in priority or - in importance
- new risks identified that were overlooked In beginning
- project work scope/ budget/ SCHED may be changed by a customer which will affect defined risks and new ones
Project meetings ?
- agenda for project status review should include an item regarding risk assessment
- attention to reviewing trigger points for each Risk to ensure no RRP should be implemented
