CH11
contingency allowances
Contingency reserves or __________ are funds included in the cost baseline that can be used to mitigate cost or schedule overruns if known risks occur.
sensitivity analysis
Many people are familiar with using +__________ to see the effects of changing one or more variables on an outcome.
risk breakdown structure
Similar in form to a work breakdown structure, a ____________ is a hierarchy of potential risk categories for a project.
flow charts
System or process ____________ are diagrams that show how different parts of a system interrelate.
risk appetite
The PMBOK® Guide, Fifth Edition, states that these at- titudes are based on two themes: "One is __________, which is the degree of uncertainty an entity is willing to take on, in anticipation of a reward.
risk owner
The _________ or person who will take responsibility for the risk: For ex- ample, a certain person might be in charge of any server-related risk events and managing response strategies.
delphi technique
The basic concept of the _______________ is to derive a consensus among a panel of experts who make predictions about future developments.
risk tolerance
The other is __________, which is the maximum acceptable deviation an entity is willing to accept on the project or business objectives as the potential impact
known risk
The term _________ is sometimes used to describe risks that the project team has identified and analyzed.
risk-seeking
Those who are _______ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
risk factors
To quan- tify risk probability and consequence, the U.S. Defense Systems Management College (DSMC) developed a technique for calculating ________—numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur.
risk-averse
Utility rises at a decreasing rate for a ________ person.
risk sharing
_____ or allocating ownership of the risk to another party.
triggers
______ are indicators or symptoms of actual risk events.
Risk
______ is an uncertainty that can have a negative or positive effect on meeting project objectives
risk enhancement
______ or changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.
risk avoidance
______ or eliminating a specific threat, usually by eliminating its causes.
top ten risk item tracking
_______ is a qualitative risk analysis tool. In addition to identify- ing risks, it maintains an awareness of risks throughout the life of a project by helping to monitor risks. Using this tool involves establishing a periodic review of the project's most significant risk items with management; similar reviews can also occur with the customer.
simulation
_______ is a quantitative risk analysis tool that uses a model of a system to analyze its expected behavior or performance
risk utility
________ is the amount of satisfaction or pleasure received from a potential payoff.
expected monetary value
________ is the prod- uct of a risk event probability and the risk event's monetary value.
risk exploitation
________ or doing whatever you can to make sure the positive risk happens.
risk transference
________ or shifting the consequence of a risk and responsibility for its management to a third party. For example, risk transference is often used in dealing with financial risk exposure.
triggers
_________ are indicators or symptoms of actual risk events, such as cost overrun on early activities being a symptom or poor cost estimates.
contingency plans
_________ are predefined actions that the project team will take if an identified risk event occurs.
residual risks
_________ are risks that remain after all of the response strategies have been implemented.
monte carlo analysis
_________ simulates a model's outcome many times to provide a statistical distribution of the calculated results.
unknown risk
_________, or risks that have not been identified and analyzed, cannot be managed.
secondary risk
__________ are a direct result of implementing a risk response.
interviewing
__________ is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or virtual discussions.
brainstorming
__________ is a technique by which a group attempts to generate ideas or find a so- lution for a specific problem by amassing ideas spontaneously and without judgment.
Risk acceptance
__________ or accepting the consequences if a risk occurs. For example, a project team planning a big project review meeting could take an active approach to risk by having a contingency or backup plan and contingency reserves if the team cannot get approval for a specific meeting site.
risk mitigation
__________ or reducing the impact of a risk event by reducing the prob- ability of its occurrence.
risk events
__________ refer to specific, uncertain events that may occur to the detriment or enhancement of the project.
Risk acceptance
___________ also applies to positive risks when the project team does not take any actions toward a risk.
fallback plans
___________ are developed for risks that have a high impact on meeting project objectives and are put into effect if attempts to reduce the risk do not work.
contingency reserves
_____________ or contingency allowances are funds included in the cost baseline that can be used to mitigate cost or schedule overruns if known risks occur.
management reserves
_________________ are funds held for unknown risks that are used for management control purposes.
workarounds
____________—unplanned responses to risk events— when they do not have contingency plans in place.
register
a risk ______ is a document that contains results of various risk management processes, and is often displayed in a table or spreadsheet format
$67,000
suppose there is a 30 percent chance that your will loose #10,000 and a 70 % chance that you will earn $100,000 on a particular project. what is the project's estimated monetary value?
delphi technique
which risk identification tools involves deriving a consensus amond a panel of experts by using anonymous input regarding future events
performing qualitative risk analysis
which risk management process involves priorizing risk based on their probability and impact of occurence?
contingency
your project involves using a new release of a common software application, but if that release is not avaialb eyour team has _____ plans to use the current release
Avoidance
your project team has decided to use an e upcoming release of software because it might cause your schedule to slip. which negative risk response strategy are your using?
risk management plan
A _______ documents the procedures for managing risk through- out the project.
risk-neutral
A ________ person achieves a balance between risk and payoff.
watch list
A ____________ is a list of risks that have low priority but are still identified as potential risks.
risk register
A ______________ is a document that contains results of various risk management processes; it is often displayed in a table or spreadsheet format.
decision tree
A __________is a diagramming analysis technique used to help select the best course of action when future outcomes are uncertain. A common application of _____ analysis involves calculating expected monetary value.
risk
A general definition of a project ____________, therefore, is an uncertainty that can have a negative or positive effect on meeting project objectives.
seeking
A person who is risk-__________ receives greater satisfaction when more payoff is at stake and is willing to pay a penalty to take risks.
probability/impact matrix chart
A project manager can chart the probability and impact of risks on a _________________, which lists the relative probability of a risk occurring and the relative impact of the risk occurring.
influence diagram
A sample flowchart is provided in Chapter 8.) Another type of diagram, an _____________, represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
