Risk

Question 1

Risk Categories

Answer 1

A way to group individual project risks for the project team.

PESTEL:
- political
- economic
- social
- tech
- environmental
- legal

VUCA:
- volatility
- uncertainty
- complexity
- ambiguity

RBS - a hierarchal representation of potential resources of risk. Risks belonging in buckets.

Question 2

Risk Register

Answer 2

Captures details of identified project risks.
Includes the list if identified risk, the owner, and the responses.

Question 3

SWOT Analysis

Answer 3

To categorize & brainstorm, risks.

Question 4

Probability and Impact Matrix

Answer 4

A grid for mapping the probability of each risk occurrence, and the impact it will have on the project. Can be given numerical values.

Question 5

Decision Tree Analysis

Answer 5

Used to support selection of the best of several alternative courses of action.

Question 6

Quantitative tools: Monte Carlo, Sensitivity/Tornado charts

Answer 6

MC: calculates thousands of different outcomes, such as end dates and end budgets. This gives a probability distribution of the outcomes based on multiple variables. Would result in a histogram.

Sensitivity/Tornado: helps determine which individual project risk could have the most impact on project outcomes.

Question 7

Strategies for Threats & Opportunities

Answer 7

Plans of action we can take when dealing with risks.

Opps: escalate, exploit, share (transfer to a 3rd party), enhance, accept

Threats: escalate, avoid (eliminate), transfer (transfer to 3rd part, like insurance), mitigate, accept.

Question 8

Reserve Analysis & Burndown Charts

Answer 8

Compares the amount of contingency reserves remaining to the amount of risk remaining at any time in the project. A way to represent this, is with a burndown chart.