Risks Flashcards
(19 cards)
What is the definition of risk?
An uncertain event/ set of events that, should it occur, will affect the achievement of objectives. A risk is measured by a combination of the likelihood of a perceived threat or opportunity occurring, and the magnitude of it’s impact on objectives.
What is the purpose of the risk practice?
The purpose of the risk practice in PRINCE2 is to identify, assess and control uncertainties and, as a result, improve the ability of the project to succeed.
What are the key risk concepts?
Velocity
Risk Response Types
Risk Owner
Risk Action Owner
Budget
Exposure Likelihood
Impact
Proximity
Appetite
Tolerance
What is a Risk Owner?
The person who is assigned to take responsibility for responding to a risk.
What is a Risk Action Owner?
The person who is the nominated owner of agreed actions to respond to a risk. This role is also known as the risk actionee.
What is Risk Likelihood?
The estimated chance that a risk will occur. Likelihood is often estimated by considering the probability or frequency of occurrence of a risk.
What is Risk Impact?
The estimated effect on objectives should a risk occur.
What is Risk Proximity?
How near in time a risk may occur.
What is Risk Velocity?
How quickly a risk would have an impact on objectives should it occur.
What is Risk Exposure?
The degree to which a particular objective is ‘at risk’. Risk exposure is a neutral concept as exposure can be positive/negative.
What is Risk Appetite?
The amount and type of risk that the business is willing to take in pursuit of its objectives.
What is Risk Budget?
A sum of money to fund specific management responses to the projects threats and opportunities.
What is Risk Tolerance?
A measurable threshold to represent the tolerable range of outcomes for each objective ‘at risk’ using the same units as for measuring performance for that objective.
True or False: A risk can be an opportunity?
True.
What are the three elements of risk planning?
Risk Cause / Risk Event / Risk Effect
Where should risks be logged?
In the Risk Register
What is Risk Control?
Risk response depends on the situation and type of risk.
May lead to reduced/secondary risks.
Risk Owners / RAO’s should be clearly identified.
An explicit budget should be ring-fenced within the projects budget.
What are the five elements of Risk Culture?
Loss Aversion
Decision Bias
Groupthink
Optimism Bias
Proximity
What is the PRINCE2 Technique for Risk Management?
Identify
Assess
Plan
Implement
Throughout: Communicate
