Risk and Issue Management

Question 1

What are the benefits of risk management?

Answer 1

1. Supports realistic plans/schedules
2. Supports accurate budgets
3. Engages stakeholders by showing that risks are considered
4. Builds confidence that risk is being managed
5. Contributes to project success through minimising threats and maximising opportunities

Question 2

What are the stages of risk management?

Answer 2

1. Identification
2. Analysis
3. Response
4. Monitoring and Escalating
5. Closure

Question 3

What are the possible responses to risk?

Answer 3

1. Accept (no possible action)
2. Avoid (stop possibility of risk occurring)
3. Reduce (reduce probability of risk occurring)
4. Transfer (transfer risk to another party)
5. Exploit (take advantage of the opportunity)
6. Enhance (increase probability/impact of opportunity)
7. Share (share opportunity with another party)
8. Reject (decide not to take advantage of the opportunity)

Question 4

What are the possible impacts of not reporting an issue?

Answer 4

1. If the risk isn’t known it can’t be resolved
2. The issue could lead to other issues
3. Overall quality of the project is impacted
4. Missed opportunity to learn from the issue and resolution

Question 5

What are the benefits of governance for risk management?

Answer 5

1. Governance details when and how to escalate risks and clearly delegates authority
2. Governance provides clear risk thresholds in line with the organisation’s risk tolerance
3. Governance ensures that risks are managed consistently

Question 6

What are the stages of issue management?

Answer 6

1. Log and analyse
2. Escalate
3. Assign actions
4. Apply change control

Question 7

What are the benefits of issue management?

Answer 7

1. Provides structure and escalation routes
2. Provides a consistent way to document issues for assessment
3. Enable re-prioritisation and decision making
4. Enables issues to be resolved efficiently
5. Informs continuous learning and improvement