Risk Theme Flashcards
(40 cards)
Define “risk”
An uncertain event, that should it occur, will have an impact on the achievement of objectives.
Define a threat…
A risk which has a negative impact
Define an opportunity
A risk which has a positive impact
For risk management to work effectively, what is needed:
1) Identified - Clear description
2) Asses - Probability, impact
3) Planned for - Suitable responses and assigning owner
4) Controlled
Risk Principles
1) Understanding project context
2) Involving stakeholders
3) Establishing clear project objectives
4) Developing risk management approach
5) Reporting regularly
6) Defining clear Roles and responsibilities
7) Making a clear support structure, and supportive culture for risk management
8) Monitoring for earl warning indicators
9) Establishing a review cycle and see continual improvement
What must the Risk Management approach define as a minimum:
1) The way we identify and assess risks, implement responses and communicate risk
2) Asses whether the risks might affect the business justification
3) The roles and responsibilities
What are the minimum requirements for the risk theme in Prince 2?
A defined risk management approach
A risk register, maintained
Ensure risk are identify, assessed, managed and reviewed
Use lessons to inform inform risk identification and management
What are the minimum products for the risk theme in Prince 2?
Risk management approach
Risk Register
What is the purpose of risk management approach in simple?
To define the approach to identify, assess and control uncertainty
What is a risk register in simple?
A record of identified risk, their status and history
Which process is the Risk management approach and Risk register created in?
Initiating a project
What is the risk tolerance?
How much risk a project can cope with
Where are risks in the starting up a project process recorded?
The daily log
What should a risk register contain?
1) A risk identifier (Unique ID)
2) Risk author (Person who raised it)
3) Date registered
4) Risk category
5) Risk description - cause, event, threat or opportunity
6) Probability, impact and expected value
7) Proximity - How close?
8) Risk response categories (Accept, share, transfer)
9) Risk response
10) Risk status
11) Risk owner
What are suitable responses to a threat?
1) Avoid
2) Reduce
What are the 5 steps to risk management procedure?
1) Identify
2) Assess
3) Plan
4) Implement
5) Communicate
How do you identify the context, for the Risk Management procedure?
View the project product description, project brief, project mandate and the risk management approach
Risk management is not about eliminating risk, but:
understand the risk and bring the risks to an appropriate level
Once the risks have been identified, where should they be recored?
Risk register
Explain risk assessment in the recommended risk procedure…
1) Risk probability - How likely?
2) Impact - What will happen if it does?
3) Proximity - When will it happen?
How would you clearly express the risk in 3 simple words?
Cause
Event (May occur)
Effect - the result of the effect
Explain risk plans in the recommended risk procedure…
Insurance - risk transfer
Locking doors - Risk reduction
What is secondary risK?
Risks which relate to the new situation after the risk response has been implemented.
What are the 4 responses which both Threat and Opportunity share?
1) Prepare contingent plans
2) Accept
3) Share
4) Transfer
