PM3110 Chapter 7 Flashcards Preview

PM3110 Project Management > PM3110 Chapter 7 > Flashcards

Flashcards in PM3110 Chapter 7 Deck (21)
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1
Q

Analysis of probability and consequences

A

.the potential impact of these risk factors, determined by how likely they are to occur and the effect they would have on the project if they did occur.

2
Q

Change management

A

as part of risk mitigation strategies also requires a useful documentation system that all partners in the project can access. Any strategy aimed at minimizing project risk factor, along with the member of the project team responsible for any action, must be clearly identified.

3
Q

Commercial risk

A

.an uncertainty that companies may willingly accept, given that it is virtually impossible to accurately predict customer acceptance of a new product or service venture.

4
Q

Contingency reserves

A

.the specific provision for unforeseen elements of cost within the defined project scope. Contingency reserves are viewed differently, however, depending upon the type of project undertaken and the organization that initiates it.

5
Q

Contractual or legal risk

A

.is often consistent with projects in which strict terms and conditions are drawn up in advance.

6
Q

Control and documentation

A

.creating a knowledge base for future projects based on lessons learned.

7
Q

Cross-training

A

.project team personnel so that they are capable of filling in for each other in the case of unforeseen circumstances. Cross-training requires that members of the project team learn not only their own duties but also the roles that other team members are expected to perform.

8
Q

Execution risk

A

.is a broad category that seeks to assess any uniquecircumstances or uncertainties that could have a negative impact on execution of the plan.

9
Q

Financial risk

A

.refers to the financial exposure a firm opens itself to when developing a project.

10
Q

Insurance

A

.Contractors acquire this as a means to offset the risks from the project that are often covered under contractual terms.

11
Q

Liquidated damages

A

.project penalty clauses that kick in at mutually agreed-on points in the project’s development and implementation.

12
Q

Managerial contingency

A

..is budget safety measures that address higher-level risks.

13
Q

Mentoring

A

junior or inexperienced project personnel are paired with senior managers in order to help them learn best practices.

14
Q

Project risk

A

.“an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives such as scope, schedule, cost, or quality. A risk may have one or more causes and if it occurs, may have one or more impacts.”

15
Q

(PRAM) Project Risk Analysis and Management

A

.a generic methodology that can be applied to multiple project environments and encompasses the key components of project risk management.

16
Q

Risk Breakdown Structure

A

.Generally fall into these classification clusters: 1) Financial 2) Technical 3) Commercial 4) Execution 5) Contractual or legal

17
Q

Risk Identification

A

“a source-oriented grouping of project risks that organizes and defines the total risk exposure of the project.”.

18
Q

Risk management

A

.recognizes the capacity of any project to run into trouble, is defined as the art and science of identifying, analyzing, and responding to risk factors throughout the life of a project and in the best interests of its objectives.

19
Q

Risk mitigation strategies

A

steps taken to minimize the potential impact of those risk factors deemed sufficiently threatening to the project..

20
Q

Task contingency

A

.is used to offset budget cutbacks, schedule overruns, or other unforeseen circumstances accruing to individual tasks or project work packages. These budget reserves can be a valuable form of risk management because they provide the project team with a buttress in the face of task completion difficulties.

21
Q

Technical risk

A

When new projects contain unique technical elements or unproven technology, they are being developed under significant technical risk. Naturally, there are degrees of such risk; in some cases, the technical risk is minimal (modifications to an already-­developed product), whereas in other situations the technical risk may be substantial.