Risk Terminology Flashcards Preview

PMP > Risk Terminology > Flashcards

Flashcards in Risk Terminology Deck (44):
1

Brainstorming

A data-generating technique which includes team members or subject matter experts for the purpose of solving project problems, identifying project risk, and planning-related activities

2

Buffer

Compensation in the planning for unknown items that could occur; typically schedule- or cost related. Sometimes called reserve

3

Contingency Allowance

Compensation in the planning for unknown items that could occur; typically schedule- or cost related; also commonly called buffer

4

Contingency Plans

Pre-established actions that the team executes if a known risk event occurs on the project

5

Contingency Reserves (Output/Input)

Reserves that can help mitigate schedule or cost issues (risk), in the case of changes with the scope or quality on the project

6

Decision Tree Analysis (Technique)

The product of multiplying the monetary value impact and probability of the risk event; helps an organization make decisions based on potential outcome and impact

7

Expected Monetary Value (EMV) (Analysis)

The product of multiplying the monetary value impact and probability of the risk event

8

Fallback Plans

A type of plan created for risks with a great impact on project goals, to be executed if attempts to minimize the risk are not successful

9

Identify Risks

The process of determining which risks can impact a project and the documentation of their properties or characteristics

10

Monitor and Control Risks

The process of monitoring known risks, reducing any risks, identifying any new risks, and monitoring risk reduction over the life of the project

11

Monte Carlo Analysis

A technique used to simulate the outcome of a project many times to determine the range of possible outcomes and the probability of their occurrence

12

Perform Qualitative Risk Analysis

Analyze risks and determine the priority of their effects on the project

13

Perform Quantitative Risk Analysis

Measure the probability and impact of the risks and estimate the impact on the project

14

Plan Risk Management

The process of defining responses to opportunities arising within the project and to threats to the project

15

Plan Risk Responses

The process of determining what risk responses will be used on risk events and who will be responsible for implementing the responses if the risks occur

16

Preventive Action

Documented activities to execute, if needed , that should minimize (or eliminate) the impact of a negative risk on the project

17

Probability and Impact Matrix (Tool)

A tool used to determine where a risk fits on a project- The typical rating is high, medium, or low for probability and impact.

18

Project Risk Management

The processes required to manage the uncertainties of a project: planning, identifying , analyzing, responding , and monitoring and controlling

19

Reserve Analysis

A technique to determine the amount of reserves needed for a project

20

Reserves

Compensation in the planning for unknown items that could occur; is typically schedule- or cost-related; also commonly called buffer

21

Residual Risk

Risk that remains after response strategies have been applied

22

Risk

The possibility of a negative (threat) or positive (opportunity) event

23

Risk Acceptance

Opting to accept the impact or consequences of a risk event

24

Risk Avoidance

Eliminating a risk or threat, usually by eliminating the cause

25

Risk Breakdown Structure (RBS) (Tool)

A decomposition of the risk categorization, and the risks within those categories that could occur on a project

26

Risk Category

A grouping of types of risk on a project (Ex: technology, organizational, customer, market)

27

Risk Database

A data repository that stores and manipulates information associated with the risk management processes

28

Risk Events

Events that may impact the project (either negative or positive)

29

Risk Factors

Numbers representing the risk of certain events, the likelihood of their occurring , plus the impact on the project (if the event does occur)

30

Risk Management Plan

A document that details and describes the plan for managing risk over the life of the project

31

Risk Mitigation

Minimizing the impact of a risk event by minimizing the likelihood (probability) of its occurrence

32

Risk Register (Output/Input)

The documented results of Plan Risk Management which can include the outputs of Perform
Qualitative Risk Analysis and Perform Quantitative Risk Analysis, as well as Plan Risk Responses

33

Risk Seeking

Possessing a higher tolerance than most for risk

34

Risk Symptoms

Characteristics which indicate that a risk event is possibly starting to occur; could also be called risk triggers

35

Risk Tolerance or Risk Utility

The level of satisfaction from a potential risk payoff

36

Risk Transference

Allocating the responsibility for and impact of the risk event to another party

37

Risk-Averse

Possessing a low desire or tolerance for risk

38

Risk-Neutral

A middle ground between the risk taken and the benefit received

39

Secondary Risks

Risks that result from the execution of a risk response

40

Sensitivity Analysis

A technique used in risk management that helps show which risks will likely have the most impact on the project

41

Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis

A risk analysis technique which considers the strengths, weaknesses, opportunities, and threats of the project to facilitate a more knowledgeable risk management analysis

42

Threat

A negative risk to the project

43

Trigger(s)

A signal that a risk event could occur or has occurred

44

Workaround (Technique)

A response to a risk that wasn't planned