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Flashcards in Post Midterm Risk Management Deck (13):

what is project risk management?

identifying, assigning, and responding to risk through the life of a project into order to best meet project objectives


what is risk tolerance?

the amount of utility (satisfaction) received from a potential payoff (stake)


Risk management process? (5)

-risk management planning
---deciding how to approach te risk management activities for the project

-risk identification
---determining which risks are likely to affect a project and documenting their characteristics

-qualitative risk analysis
---prioritizing risk based on their probability and impact of occurance

-quantitative risk analysis
---numerically estimating the effects of risks on project objectives

-risk monitoring and control
---monitoring unknown risks, identifying new risks, reducing risks, evaluating the effectiveness of risk reduction


What is important with respect to the risk management plan?

the project team should review project documents and understand te organizations and the sponsors approach to risk


5 categories of risk

external risk

financial risk

technology risk

organizational and people risk

project management (structure/process) risk


4 risk identification tools?

they help find risks.

swot analysis
risk real down structure


what is a risk register?

risk event is what?

document that contains the results of various risk management processes. displayed in a table

documents potential risk events and related info.

RISK EVENTS: refer to specific uncertain events that may occur


qualitative risk analysis is what?

tools include?

likelihood and impact of identified risks to determine their magnitude and priority

probability/impact charts
expert judgement


Quantitative risk analysis is what?

how is it done?

follows a qualitative risk analysis but both can be done together.

done through a decision tree analysis
and through simulation


what is the Monte Carlo analysis (with regards to simulation)

simulated a models outcome many times to provide a statistical distribution of the calculated results

used pessimistic, optimistic, and most likely


4 risk response planning

1. risk avoidance
-eliminates a threat

2. risk acceptance
-accepting the consequence if a risk occurs

3. risk transferance
-shifting te consequence of risk and responsibility to a third party

4. risk mitigation
-reducing the impact of a risk ever by reducing the probability of it's occurance. contingency plan


Workarounds are what?

unplanned responses to risk events that must e done when there are no are contingency plans


main outputs of risk monitoring and control? (3)

-request changes
-recommended correct and preventative actions
-updates to the risk register, project plan, and org process assets