Risk (week 8)

Question 1

What is risk management?

Answer 1

Identification, assessment & prioritisation of risks,

Application of resources to minimise, monitor and control unplanned events / maximise the realisation of opportunities

Question 2

What are the steps of Risk Management?

Answer 2

Plan > Identify > Qualitative assessment > Quantitative assessment > plan response > control risks

Question 3

What are the tools & techniques used in Risk Management?

Answer 3

• document review (scope & methodology)
• SWOT analysis
• probability & impact assessment
• risk categorisation
• quantitative modelling techniques
• response strategies
• opportunity identification
• variance & trend analysis
• risk audit

Question 4

What are the Impact & Probability ratings?

Answer 4

Very high, high, moderate, low, very low

Question 5

What is GMP?

Answer 5

Guaranteed maximum price

Question 6

What is a very high impact & probability rating?

Answer 6

>20% threat cost increase
>5% opportunity cost decrease
>6 months slippage
>3 months improvement lost
60-99% probability

Question 7

What is a high impact & probability rating?

Answer 7

10-20% threat cost increase
3-5% opportunity cost decrease
3-6 months slippage
2-3 months improvement lost
40-59% probability

Question 8

What is a moderate impact & probability rating?

Answer 8

5-10% threat cost increase
1-3% opportunity cost decrease
1-3 months slippage
1-2 months improvement lost
20-39% probability

Question 9

What is a low impact & probability rating?

Answer 9

<1 month improvement lost

10-19% probability

Question 10

What is a very low impact & probability rating?

Answer 10

All insignificant

1-9% probability

Question 11

What does ‘SWOT’ stand for?

Answer 11

Strength, Weaknesses, Opportunity, Threats