Chapter 7 Mitigating risks
Change management systems
1. Identify proposed changes. 2. List expected effects of proposed change(s) on schedule and budget. 3. Review, evaluate, and approve or disapprove changes formally. 4. Negotiate and resolve conflicts of change, conditions, and cost. 5. Communicate changes to parties affected. 6. Assign responsibility for implementing change. 7. Adjust master schedule and budget. 8. Track all changes that are to be implemented.
Identify and briefly describe the five ways to respond to identified risks.
1. Mitigate the risk; duplicate systems, backup systems, alternate technology development, 2. Avoid the risk; changing the project plan to eliminate the risk, 3. Transfer the risk; fixed-price contract, insurance, 4. Sharing the risk; find others to share the costs of the risk, and 5. Retain the risk; take preventative measures to reduce the risk such as training.
Risk management steps:
1. Risk identification 2. Risk assessment 3. Risk response development 4. Risk response control
Risk profile items
1. Technical requirements 2. Design 3. Testing 4. Development 5. Schedule 6. Quality 7. Management 8. Budgetm 9. Work environment 10. Staffing 11. Customer 12. Contractors
Risk Response Matrix
1.Risk event 2.Response 3.Contingency plan 4. Trigger 5. Who is responsible
Compare and contrast budget reserves and management reserves.
Budget reserves are for known risks associated with specific work packages and controlled by the project managers. Management reserves are for unforeseen risks associated with the overall project and are controlled by upper management.
Probability analysis tools
Decision trees have been used to assess alternative courses of action using expected values PERT (program evaluation and review technique) and PERT simulation can be used to review activity and project risk
. Adopting proven technology instead of experimental technology is an example of mitigating a risk
FALSE Avoiding
The ________ form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it.
Risk assessment
Risk management attempts to
Risk management attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented.
How should a risk assessment be conducted?
The Scenario analysis is the easiest and most commonly used technique for analyzing risks. Each risk is assessed in terms of 1. what the risk are, 2. the outcomes of the event's occurrence, 3. the severity of the event's impact, 4. the probability of the event occurring, 5. when the event may occur, and 6. the interaction with other parts of the project or other projects.
Describe the process for identifying project risks.
The project manager pulls together a risk management team consisting of core team members and other relevant stakeholders and uses brainstorming and other techniques to identify project risks. Focus should be on the WBS and the risks associated with the deliverables.
Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.
budget
A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality
contingency plan
The risk identification process should not be limited to just the core team. Input from ...
customers,
The risk identification process should not be limited to just the core team. Input from ...
customers, sponsors, contractors and other stakeholders should be solicited.
Failure Mode and Effects Analysis (FMEA)
extends the risk severity matrix by including ease of detection in the equation: Impact x Probability x Detection = Risk Value
A risk register details all ...
identified risks, including descriptions, category, probability, impact, responses, contingency plans, owners and current data.
The risk severity matrix provides a basis for ....
prioritizing which risks to address first
In a ________, three different estimates of activity times are used to statistically predict the time an activity will take to complete.
probability analysis
A ________ identifies what to do if a potential risk event actually occurs.
risk response matrix
[] analysis
scenario analysis
Risk profiles recognize the unique strengths and weaknesses of the firm; also risk profiles address both
technical and management risks.
The focus at the beginning should be on risks that can affect the [] as opposed to a specific section of the project or network.
whole project