Risk Management Flashcards
(42 cards)
1
Q
Primary Risk Management Processes
A
- Plan Risk Management
- Identify Risks
- Perform Qualitative Risk Analysis
- Perform Quantitative Risk Analysis
- Plan Risk Responses
- Control Risks
2
Q
Known Risks
A
- have been identified and analyzed
- possible to plan responses
- Knwon risk that cannot be proactively managed should be assigned contingency reserves
3
Q
Unknown Risks
A
- cannot be managed proactively
- Should be assigned a management reserve
4
Q
Risk Appetite
A
- degree of uncertainty an entity is willing to take on in anticiaption of a reward
5
Q
Risk Tolerance
A
- Degree, amount, or volume of risk that an organization or individual will withstand
*
6
Q
Risk Threshold
A
- measures along the level of uncertainty ir the level of impact at which a stakeholdr may have a specific interest
- Below the threshold, they will accept the risk
- Above the threshold, they will not tolerate the risk
7
Q
Risk Management Plan Components
A
- Methodology
- Roles and Responsibilities
- Budgeting
- Timing
- Risk Categories
- Definitions of risk probability and impact
- Probability and Impact Matrix
- Revised Stakeholder tolerances
- Reporting formats
- Tracking
8
Q
Risk Information Gathering Techniques
A
- Brainstorming
- Delphi Technique
- Interviewing
- Root Cause Analysis
9
Q
Brainstorming
A
10
Q
Delphi Technique
A
- Way to reach a concensus of experts
- Participate anonymously
- Use a quesitionairre to solicit ideasabout important risks
- ideas are consolidated then recirculated to the experts
- Helps to redues bias in the data
11
Q
Root-Cause Analysis
A
- USed to identify a problem or to discover the underlying cause that lead to it, and develop preventative action
12
Q
Risk Diagramming Techniques
A
- Cause and Effect Diagrams
- System or process flow charts
- influence diagrams
13
Q
Checklist Analsysis
A
- Use of a checklist for risks from historical information
- Should not be used in place or proper risk management
- Would likely be used for very repeatable projects and processes
14
Q
Risk Cause and Effect Diagrams
A
- Also known as fishbone diagrams
15
Q
Risk System or process flow charts
A
- how various elements of a system interrelate and the mechanism of causation
16
Q
Influence Diagrams
A
- Graphical representations of situations showing causal influences, time ordering of events, and other relationships aming variables and outcomes
17
Q
SWOT Analysis
A
18
Q
Qualitative Risk Assessment Tools and Techniques
A
- Risk proabability and Impact Assessment
- Probability and Impact Matrix
- Risk Data Quality Assessment
- Risk Categorization
- Risk Urgency Assessment
19
Q
Risk probability and impact assessment
A
- looking at the prbability and impact on each risk
- Think of the traditional risk log
20
Q
Probability and impact matrix
A
- Risk rating rules usually pre-defined
- matrix to score each risk based on probability and impact
- Color scales may be used to identify high, medium, low risk based on organizational rules
- Risk Scores help to determine priority of action and response
21
Q
A
22
Q
Risk Data Quality Assessment
A
- Determining the degree to which riskl data is useful in managing those risks
- For example, do you have adequate information to understand and rsspond to the risk
23
Q
Risk Categorization
A
24
Q
Risk Urgency Assessment
A
- Considers indicators of priority
- risks requiring near-term responses
25
Quantitative Risk Analysis
* Risk evaluation based on numerical analysis
* May or may not be possible depdning on data available for the project
* Almost always follows the qualitative analysis process
26
Qualitative Risk Analysis Techniques
* Data Gathering and Representation Techniques
* Interviewing
* Probability Distributions
* Modeling Techniques
* Sensitivity Analysis
* Expected Monetary Value (EMV) Analysis
* Modeling and Simulation
27
Data Gathering: Interviwewing
* drawing on historical data
* Estimasting risk based on low, most likely, and high estaimtes
28
Probability Distributions
* represent uncertsinty in values
* Think bell curve
* Shape of curves may be determined by data or by risk policies
29
Sensitivity Analysis
* Used to determine which risks have the most potential impact on the project
* Investigates the extent to which uncertainty or each proejct element affects the objecitves when all other uncertain elements are held constant
* Common representation of this is the Tornado Diagram
* Y-Axis contains each type of uncertainty
* X-Axis contains the spread or correlation of the uncertainty at base values
30
Expected Montetary Value Analysis
* Calculates the average outcome when future includes scenarios that may or may not occur
* Used for analysis under uncertainty
* Opportunities generally expressed as positive values
* Threats usually expressed as negative values
* Requires a risk-neutral assumption (neither risk averse, nor risk seeking)
* Typically uses decision tree analysis
* EMV is calculated by multiplying the value of each posible outcome by its probability of occurence and adding the products together
31
Modelling and Simulation
* translates the specificed uncertainties into their potential impact on project objectives
* Typically performed using the Monte Carlo technique
32
Negative (Threat) risk response techniques
* Avoid
* Transfer
* Mitigate
* Accept
33
Positive (Opportunity) Risk Response Techniques
* Exploit
* Enhance
* Share
* Accept
34
Avoid
* Negative Risk Repsonse strategy where project team acts to eliminate the threat or protect the team from its impact
* Usually changes the project's objectives, including changing scope, or to the extreme of shutting down the project
35
Transfer
* Negative risk response strategy in which the proejct team transfers the impact of the threat to a third party, along with the ownership of the response
* Does not eliminate risk
* Typically includes payment of a risk premium to the owning party (higher rates, etc)
* Contracts might be used to transfer liability
* Reason for companies hiring vendors for example
36
Mitigate
* Negative risk response sterategy in which the project team acts to minimize the probability of occurance or impact of a risk
* Examples include:
* adopting less complex processes
* conducting more tests
* choosing a more stable supplier
* designing redundancy into a system
37
Accept
* Negative risk response strategy in which the project team decides to acknowledge the risk and not take any action unless the risk occurs
* Usually used when there is no way to address a risk in any other way
38
Exploit
* Positive risk response strategy in which the organization wants to ensure that the opportunity is realized
* Esnuring the opportunity definitely happens
39
Enhance
* Positive risk response strategy used to increase pobabilityand/or positive impacts of an opportunity
* Example: is adding more resources to an activity to finish early
40
Share
* Positive risk response in allocating some or all of the ownership to a third party that is more capable of capturing the opporunity
* Example might include outsourcing for a specialized task
41
Accept
* Positive risk strategy in which the team is willing to take advantage of the opportunity if it arises, but does not actively pursue it
42
Contingent Response Plan
* Risk response plan that will only be executed if certain conditions occur
