Flashcards in PMBOK Chapter 11 - Project Risk Management Deck (23):
Project Risk Management
includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project
Plan Risk Management (process)
the process of defining how to conduct risk management activities for a project
Identify Risks (process)
the process of determining which risks may affect the project and documenting their characteristics
Perform Qualitative Risk Analysis (process)
the process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact
Perform Quantitative Risk Analysis (process)
the process of numerically analyzing the effect of identified risks on overall project objectives
Plan Risk Responses (process)
the process of developing options and actions to enhance opportunities and to reduce threats to project objectives
Control Risks (process)
the process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks and evaluating risk process effectiveness throughout the project
What is the risk management plan?
a component of the project management plan and describes how risk management activities will be structured and performed. Includes the following: methodology; roles and responsibilities; budgeting; timing; risk categories; definitions of risk probability and impact; probability and impact matrix; revised stakeholders' tolerances; reporting formats; tracking
What are documentation reviews?
a structured review of the project documentation may be performed, including plans, assumptions, previous project files, agreements and other information
What is SWOT analysis?
examines the project team from each of the strengths, weaknesses, opportunities and threats perspectives to increase the breadth of identified risks by including internally generated risks
What is the risk register?
document in which the results of risk analysis and risk response planning are recorded.
What is a risk probability and impact assessment?
risk probability assessment investigates the likelihood that each specific risk will occur. risk impact assessment investigates the potential effect on a project objective such as schedule cost, quality, or performance, including both negative effects for threats and positive effects for opportunities
What is a probability impact matrix?
ratings are assigned to risks based on their assessed probability and impact. evaluation of each risk's importance and priority for attention is typically conducted using a look-up table or a probability and impact matrix, such a matrix specifies combinations or probability and impact that lead to rating the risks as low, moderate or high priority
What is risk data quality assessment?
technique to evaluate the degree to which the data about risks is useful for risk management
What is risk categorization?
risks to the project can be categorized by sources of risk, the area of the project affected, or other useful categories to determine the areas of the project most exposed to the effects of uncertainty
What is risk urgency assessment?
indicators of priority may include probability of detecting the risk, time to affect a risk response, symptoms and warning signs and the risk rating
What are quantitative risk analysis and modeling techniques?
1) Sensitivity analysis - helps to determine which risks have the most potential impact on the project
2) Expected monetary value analysis (EMV) - a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen
3) Modeling and simulation - a project simulation uses a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives
Four strategies for negative risks or threats:
1) Avoid - risk avoidance is where the project team acts to eliminate the threat or protect the project from its impact
2) Transfer - the project team shifts the impact of a threat to a third party, together with ownership of the response
3) Mitigate - the project team acts to reduce the probability of occurrence or impact of a risk
4) Accept - the project team decides to acknowledge the risk and not take any action unless the risk occurs
Four strategies for positive risk or opportunities:
1) Exploit - the exploit strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized
2) Enhance - used to increase the probability and/or the positive impacts of an opportunity
3) Share - sharing a positive risk involves allocating some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity for the benefit of the project
4) Accept - accepting an opportunity is being willing to take advantage of the opportunity if it arises, but not actively pursuing it
What is risk reassessment?
project risk reassessment should be regularly scheduled. the amount and detail of repetition that are appropriate depends on how the project progresses relative to its objectives
What are risk audits?
examine and document the effectiveness of risk responses in dealing with identified risks and their root causes
What is variance and trend analysis?
many control processes employ variance analysis to compare the planned results to the actual results.