Risk Terminology

Question 1

Brainstorming

Answer 1

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

Question 2

Buffer

Answer 2

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

Question 3

Contingency Allowance

Answer 3

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

Question 4

Contingency Plans

Answer 4

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

Question 5

Contingency Reserves (Output/Input)

Answer 5

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

Question 6

Decision Tree Analysis (Technique)

Answer 6

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

Question 7

Expected Monetary Value (EMV) (Analysis)

Answer 7

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

Question 8

Fallback Plans

Answer 8

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

Question 9

Identify Risks

Answer 9

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

Question 10

Monitor and Control Risks

Answer 10

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

Question 11

Monte Carlo Analysis

Answer 11

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

Question 12

Perform Qualitative Risk Analysis

Answer 12

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

Question 13

Perform Quantitative Risk Analysis

Answer 13

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

Question 14

Plan Risk Management

Answer 14

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

Question 15

Plan Risk Responses

Answer 15

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

Question 16

Preventive Action

Answer 16

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

Question 17

Probability and Impact Matrix (Tool)

Answer 17

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

Question 18

Project Risk Management

Answer 18

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

Question 19

Reserve Analysis

Answer 19

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

Question 20

Reserves

Answer 20

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

Question 21

Residual Risk

Answer 21

Risk that remains after response strategies have been applied

Question 22

Risk

Answer 22

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

Question 23

Risk Acceptance

Answer 23

Opting to accept the impact or consequences of a risk event

Question 24

Risk Avoidance

Answer 24

Eliminating a risk or threat, usually by eliminating the cause

Question 25

Risk Breakdown Structure (RBS) (Tool)

Answer 25

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

Question 26

Risk Category

Answer 26

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

Question 27

Risk Database

Answer 27

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

Question 28

Risk Events

Answer 28

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

Question 29

Risk Factors

Answer 29

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

Question 30

Risk Management Plan

Answer 30

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

Question 31

Risk Mitigation

Answer 31

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

Question 32

Risk Register (Output/Input)

Answer 32

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

Question 33

Risk Seeking

Answer 33

Possessing a higher tolerance than most for risk

Question 34

Risk Symptoms

Answer 34

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

Question 35

Risk Tolerance or Risk Utility

Answer 35

The level of satisfaction from a potential risk payoff

Question 36

Risk Transference

Answer 36

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

Question 37

Risk-Averse

Answer 37

Possessing a low desire or tolerance for risk

Question 38

Risk-Neutral

Answer 38

A middle ground between the risk taken and the benefit received

Question 39

Secondary Risks

Answer 39

Risks that result from the execution of a risk response

Question 40

Sensitivity Analysis

Answer 40

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

Question 41

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

Answer 41

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

Question 42

Threat

Answer 42

A negative risk to the project

Question 43

Trigger(s)

Answer 43

A signal that a risk event could occur or has occurred

Question 44

Workaround (Technique)

Answer 44

A response to a risk that wasn't planned