Project Management Chapter 11
Risk Breakdown Structure
A hierarchy of potential risk categories for a project.
Risk Management Plan
A plan that documents the procedures for managing risk throughout a project.
Risk Transference
A risk management and control strategy that involves the contractual shifting of a pure risk from one party to another.
Brainstorming
A technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment.
Project Risk
An uncertainty that can have a negative or positive effect on meeting project objectives.
Planning Risk Management
Deciding how to approach and plan the risk management activities for the project.
Identifying Risks
Determining which risks are likely to affect a project and documenting the characteristics of each.
Fallback Plans
Developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective.
Management Reserves
Funds held for unknown risks.
Risk Factors
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.
Residual Risks
Risks that remain after all of the response strategies have been implemented.
Positive Risks
Risks that result in good things happening
Risk Events
Specific, uncertain events that may occur to the detriment or enhancement of the project.
Triggers
Symptoms of actual risk events.
Planning Risk Responses
Taking steps to enhance opportunities and reduce threats to meeting project objectives.
Risk Mitigation
Taking steps to reduce adverse effects of risk.
Risk Tolerance (Risk Utility)
The amount of satisfaction or pleasure received from a potential payoff.
Negative Risks
Understanding potential problems that might occur in the project and how they might impede project success.
Delphi Technique
Used to derive a consensus among a panel of experts who make predictions about future developments.
Decision Tree
A diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
Secondary Risks
A direct result of implementing a risk response.
Risk Register
A document that contains the results of various risk management processes and that is often displayed in a table or spreadsheet format.
Probability/Impact Matrix
Lists the relative probability of a risk occurring on one side of a matrix or axis on a chart and the relative impact of the risk occurring on the other.
Controlling Risk
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
Numerically estimating the effects of risks on project objectives.
Contingency Plans
Predefined actions that the project team will take if an identified risk event occurs.
Performing Qualitative Risk Analysis
Prioritizing risks based on their probability and impact of occurrence.
Contingency Reserves
Provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level.
Monte Carlo Analysis
Simulates a model's outcome many times to provide a statistical distribution of the calculated results.
Project Risk Management
The art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives.
Risk Acceptance
The cost of managing a certain type of risk is accepted, because the risk involved is not adequate enough to warrant the added cost it will take to avoid that risk.
Risk Avoidance
The elimination of hazards, activities and exposures that can negatively affect an organization's assets.
Risk
The possibility of loss or injury.
Estimated Monetary Value (EVM)
The product of a risk event probability and the risk event's monetary value.