Ch.11

risk acceptance

Basic response strategies for negative risks and positive risks, accepting the consequences if a risk occurs

risk avoidance

Basic response strategies for negative risks, eliminating a specific threat, usually by eliminating its causes

risk mitigation

Basic response strategies for negative risks, reducing the impact of a risk event by reducing the probability of its occurrence

risk transference

Basic response strategies for negative risks, shifting the consequence of a risk and responsibility for its management to a third party

watch list

a list of risks that are low priority, but are still identified as potential risks

risk identification

determining which risks are likely to affect a project and documenting the characteristics of each. The main outputs of this process are a risk register, risk report and project documents updates

fallback plans

developed for risks that have a high impact on meeting project objectives, and are put into effect of attempts to reduce the risk are not effective

decision tree

diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain

risk management plan

documents the procedures for managing risk throughout a project, the main output of "Planning Risk Management"

contingency reserves

funds included in the cost baseline that can be used to mitigate cost or schedule overruns if known risks occur

risk monitoring and control

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 OR ensuring appropriate risk responses are performed, tracking identified risks, identifying and analyzing new risk, and evaluating effectiveness of risk management throughout the entire project

quantitative risk analysis

numerically estimating the effects of risks on project objectives, large, complex projects involving leading edge technologies often require extensive quantitative risk analysis

contingency plans

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

Qualitative Risk Analysis

prioritizing risks based on their probability and impact of occurrence, assess the likelihood and impact of identified risks to determine their magnitude and priority

contingency allowance

same as contingency reserves, funds included in the cost baseline that can be used to mitigate cost or schedule overruns if known risks occur

monte carlo analysis

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

risk response planning

taking steps to enhance opportunities and reduce threats to meeting project objectives -Implementing risk response: implementing response plans

EMV

AKA "estimated monetary value", product of a risk event probability and the risk event's monetary value