Risk Mgmt

Question 1

Risk mgmt processes

Answer 1

Initiating - none
Planning - plan risk mgmt, identify risks, perform qualitative analysis, perform quantitative analysis, plan risk responses
Executing - implement risk responses
Monitoring & controlling - monitor risks
Closing - none

Question 2

Risk mgmt process outputs

Answer 2

Plan risk mgmt - risk mgmt plan
Identify risks - risk register, risk report
Perform qual analysis - none
Perform quan analysis - none
Plan risk responses - none
Implement risk responses - change requests
Monitor risks - none

Question 3

Risk

Answer 3

1) related to an uncertain event
2) may affect the project for good OR bad
3) individual project risk - threatens an objective
Overall project risk - threatens the success of the project

Question 4

Risk approaches

Answer 4

Size of project, complexity, inherent project risk, project methodology, importance

Question 5

Plan risk mgmt

Answer 5

Creating the risk mgmt plan

Question 6

Risk mgmt plan

Answer 6

Roadmap to the other six risk mgmt processes

Defines what level of risk will be tolerable for the project, how risk will be managed, who will be responsible for risk activities, the amounts of time and resources that will be allotted torsion activities and how risk findings will be communicated

Question 7

Risk breakdown structure (RBS)

Answer 7

Creating consistent risk categories

Graphical or hierarchical decomposition used to facilitate understanding and organization of risk categories

Question 8

Identify risks

Answer 8

Evaluates the project to create a list of risks that could potentially impact the project and to understand the nature of those risks

Question 9

Identify risks tools

Answer 9

Data gathering
Data analysis - root cause analysis, SWOT
Prompt list

Question 10

Root causes analysis

Answer 10

Ishakawa diagram - fishbone - 5 whys

Question 11

SWOT

Answer 11

Internal/external, helpful/harmful

Strength, weakness, opportunities, threats

Question 12

Prompt list

Answer 12

Framework for identifying new risks

Question 13

Risk register

Answer 13

A list of all identified risks on the project, what the possible reactions are, root causes, and what categories the risk falls into

Identified risk, owners and responses

Question 14

Risk report

Answer 14

Summary document of risk register, high-level information on identified risks

Question 15

Perform qualitative analysis

Answer 15

Done to determine which risks are the highest priority on a project

Takes each risk from the risk register an works to analyze the probability it will occur and impact if it does

Question 16

Perform qualitative analysis tools

Answer 16

Data analysis - risk data quality assessment, risk probability and impact assessment, risk categorization
Data representation - hierarchical charts (bubble chart)

Question 17

Risk data quality assessment

Answer 17

If the data for risks is not high quality then the decisions you make will have more uncertainty

Data should be objectively evaluated to determine whether or not it is acceptable and accurate of quality

Question 18

Risk probability and impact assessment / probability and impact matrix

Answer 18

Highest priorities for risk, score (high medium low or a scale)

Question 19

Assessment of other risk parameters

Answer 19

Urgency, proximity, manageability, controllability, connectivity, strategic impact, propinquity, dormancy, detectability

Question 20

Urgency

Answer 20

How much time you have to respond to a risk event

Lower is desired

Question 21

Proximity

Answer 21

How much time you have before the risk impacts project goals

Lower is desired

Question 22

Dormancy

Answer 22

How much time will pass after the risk has occurred before it is detected

Lower is desired

Question 23

Manageability

Answer 23

How easily a risk’s impact can be managed

Higher is desired

Question 24

Controllability

Answer 24

How easily a risk event can be changed

Higher is desired

Question 25

Detectability

Answer 25

How easily a risk can be notified/recognized Higher is desired

Question 26

Connectivity

Answer 26

How risks are connected Lower is desired

Question 27

Strategic impact

Answer 27

How likely the risk is to impact the organization’s strategic goals Lower is desired

Question 28

Propinquity

Answer 28

Measure of how important the project’s stakeholders perceive this risk to be Lower is desired

Question 29

Risk categorization

Answer 29

Can hep you build a big picture of the risks, usually done with a RBS

Question 30

Perform quantitative analysis

Answer 30

Seeks to assign a projected value to quantify the risks that have been ranked by the perform qualitative analysis process Usually specified in terms of cost or time

Question 31

Perform qualitative analysis tools

Answer 31

Representations of uncertainty | Data analysis - simulations (monte Carlo, sensitivity, decision tree, influence diagram)

Question 32

Representations of uncertainty

Answer 32

Likelihood of a risk occurrence Probability distributions - beta and triangular

Question 33

Quantitative analysis simulatio

Answer 33

Monte Carlo analysis Sensitivity analysis Decision tree analysis Influence diagrams

Question 34

Sensitivity analysis

Answer 34

Tornado diagram Provides a way to depict the project’s sensitivity to cost or other risk factors Ranks bars from highest to lowest (looks like a tornado)

Question 35

Decision tree analysis

Answer 35

Probability and arrive at a dollar amount associated with each risk Each branches gets an expected monetary value (EMV)

Question 36

Influence diagram

Answer 36

Entities, influences and possible outcomes

Question 37

Plan risk response

Answer 37

Ready to create a detailed plan for managing them

Question 38

Plan risk response tools

Answer 38

``` Strategies for threats Strategies for opportunities Contingent response strategies Strategies for overall project risk Data analysis - alternatives, cost-benefit analysis ```

Question 39

Strategies for threats

Answer 39

Escalate, avoid, transfer, mitigate, accept Harmful and external

Question 40

Strategies for threats - escalate

Answer 40

Not a favored choice, should only be used when a risk is outside the PMs authority

Question 41

Strategies for threats - avoid

Answer 41

Appropriate for working with undesirable risk in some cases

Question 42

Strategies for threats - transfer

Answer 42

Contractual agreements and insurance Moved outside the organization

Question 43

Strategies for threats - mitigate

Answer 43

Make it less, does not eliminate but diminishes

Question 44

Strategies for threats - accept

Answer 44

Perfectly reasonable whether positive or negative Passive acceptance - no proactive steps Active acceptance - may involve contingency plan if it occurs

Question 45

Strategies for opportunities

Answer 45

Escalate, exploit, share, enhance, accept Helpful and external

Question 46

Strategies for opportunities - escalate

Answer 46

Managed at level above PM

Question 47

Strategies for opportunities - exploit

Answer 47

Trying to remove an uncertainty

Question 48

Strategies for opportunities - share

Answer 48

Working with another party

Question 49

Contingent response strategies

Answer 49

Contingency/fallback plan Project team may make one decision related to risk, but make that decision contingent upon certain conditions

Question 50

Strategies for overall project risk

Answer 50

Point is to establish your project’s overall posture towards risk, to understand and analyze risk and to plan appropriate action

Question 51

Alternatives analysis

Answer 51

Alternative ways to deal with risks

Question 52

Cost-benefit analysis

Answer 52

Response doesn’t cost more than the risk

Question 53

Implement risk responses

Answer 53

Puts the risk response plan into action

Question 54

Monitor risks

Answer 54

Looks over the plan and execution and compares them Takes work performance information and data and compares to plan

Question 55

Monitor risks tools

Answer 55

Data analysis - technical performance analysis, reserve analysis Audits Meetings