11

sensitivity analysis

A _____ is a technique used to show the effects of changing one or more variables on an outcome.

risk-neutral

A _____ person achieves a balance between risk and payoff.

decision tree

A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.

influence diagram

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.

planning

Identifying risks is a subprocess of the _____ process of project risk managemen

planning

Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management

probability/impact matrix

The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.

risk-seeking

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake

procurement

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.

Assess the range for the variables being considered.

What is the first step in a Monte Carlo analysis?

Monte Carlo

_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results

risk-averse

Risk utility rises at a decreasing rate for a _____ person

Risk acceptance

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.

Contingency plans

_____ are predefined actions that the project team will take if an identified risk event occurs.

Workarounds

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.

Top Ten Risk Item Tracking

_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks

Risk sharing

_____ involves allocating ownership of the risk to another party.

Risk enhancement

_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.

Planning risk management

_____ involves deciding how to approach and plan the risk management activities for the project.

Identifying risks

_____ involves determining which risks are likely to affect a project and documenting the characteristics of each.

Risk exploitation

_____ involves doing whatever you can to make sure the positive risk happens

Risk avoidance

_____ involves eliminating a specific threat, usually by eliminating its causes.

Controlling risk

_____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.

Performing quantitative risk analysis

_____ involves numerically estimating the effects of risks on project objectives

Performing qualitative risk analysis

_____ involves prioritizing risks based on their probability and impact of occurrence.

Risk mitigation

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.

Risk transference

_____ involves shifting the consequence of a risk and responsibility for its management to a third party.

Planning risk responses

_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.

Interviewing

_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.

Secondary

_____ risks refer to those that are direct results of implementing risk responses.