The Risk Management Process Flashcards
(24 cards)
What are the five approaches to risk response?
All in the context of a new Sunday league football pitch
What are the roles and responsibilities of the project sponsor in risk management?
- Provides overall direction and support
- Ensures alignment with organisational goals
- Allocates resources and a budget
- Approves risk management plans and resources
- Makes critical decisions when high impact risks arise
All in the context of a new Sunday league football pitch
What are the roles and responsibilities of the project manager in risk management?
- Identify, assess, and prioritise risks
- Communicate risks to stakeholders and escalate major risks
- Develop and implement risk management plan
- Assign risk owners
- Oversees progress and mitigation throughout project
- Monitor and update the risk register
All in the context of a new Sunday league football pitch
What are the roles and responsibilities of the project team in risk management?
- Actively identify and report risks
- Analyse and mitigate risks
- Risk response planning
- Monitor risk
All in the context of a new Sunday league football pitch
What are the roles and responsibilities of the risk owner in risk management?
Main Contractor shoulders most risk
- Responsible for assigned risks
- Analyse the assigned risk’s impact and probability
- Develop and implement mitigation contingency plans
- Monitor the risk and report changes to the PM
All in the context of a new Sunday league football pitch
What are the roles and responsibilities of the risk assessor in risk management?
- Provides guidance
- Can provide methodological support
- Supervision of the correct application of Risk Management principles
- Managagement of the risk database
All in the context of a new Sunday league football pitch
What are the roles and responsibilities of the risk management committee in risk management?
- Dedicated group that oversees risk strategies
- Review and approve risk management strategies
- Assess high-level and strategic risks
- Provide guidance on complex risk issues
What are the roles and responsibilities of the stakeholders in risk management?
- Provide input, raise concerns, and support risk mitigation efforts
- Identify and communicate risks that affect their interests
- Collaborate with the project team on risk response strategies
- Ensure compliance with regulatory requirements (this depends on stakeholder)
What are the roles and responsibilities of the quality assurance and compliance teams in risk management?
- Audit and review risk management practices
- Ensure risk management adheres to policies, standards, and regulations
- Provide recommendations for risk control improvements
What framework is best known for classifying risk?
PESTEL
Policial
Economic
Social
Technological
Environmental
Legal
List nine categories of project risk classifications and associated risks
The 9 green symbols
If there is uninsurable risk that external events present, what may need to happen?
Force Majeure
What are the four steps to the risk management process according to APM?
- Risk Identification
- Risk Analysis
- Risk Response
- Risk Control
What are the seven approaches to risk identification?
💭 Brainstorming
🎾SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
💾 Risk Database
🔍 Information Gathering
📋 Checklists
🤔 Assumptions Analysis (Challenge assumptions that could pose risks)
🐟 Cause and Effect Diagram
What is the output to risk identification and what should this include?
Risk Register: Include risk owner, mitigation, likelihood, and impact
What are the two forms of risk evaluation?
- Qualitative
- Quantitative
What is qualitative analysis?
- Variables are measured on qualitative scales (low, medium, high)
- Impact/Probabilty grids
What is quantitative analysis?
- Assign probability scores to quantitative descriptions
- Impact x Probability = Expected Risk Value
- Sensitivity Analysis: Demonstrates effect to cost or time
What does risk evaluation depend on, and what makes it challenging (the issues)?
It is up to risk evaluators to determine:
1. How to model probability
2. How to evaluate impact
3. How to estimate risk at project level
Any underlying assumptions made have to be robust and tested
What is the maintenance principle?
- If it doesn’t exist, it can’t fail
- Removing components to reduce risk exposure may be sensible
Where should risks be transfered and allocated?
- Allocate to the stakeholder best positioned to manage it (usually main contractor)
- Residual risk can then be managed
What is contingency planning and who is repsonsible?
- Extra funding that covers the risk impact
- Usually given to the project manager or top management
What are four monitoring and review tools for the risk management process?
- Risk reports
- Action logs
- Owner tracking
- Trend reports
What are the limitations of the risk management process?
- Data scarcity: Hard to collect or not available
- Reliant on good decision making and risk identification
