Project Risk Management

What are the outputs to the Monitor Risks Process?

WPI Change Requests PM Plan Updates Project Doc Updates

How do you calculate Expected Monetary Value (EMV)?

1. Assign a Probability for the risk 2. Assign a Monetary impact if it were to occur 3. Multiply the Probability by the impact

What is included in the Project Risk MGT knowledge area?

risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project

Tornado Diagram

A graphical chart used in Perform Quantitative Analysis. Tornado diagrams show how sensitive the project is to risk by depicting the effect of a single variable change, while holding all other variables steady. (P. 93 in study guide)

Probability and Impact Matrix

A grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs.

Risk Breakdown Structure (RBS)

A hierarchical representation of risks according to their risk categories.

What is Decision Tree Analysis?

A type of analysis that determines which of two decisions is the best. The decision tree assists in calculating the value of the decision and determining which decision costs the least. a type of EMV analysis

Risk Response Strategies; Threats

Escalate: Hand off decision. Give it to someone better apt to make decision; Sponsor, higher up etc Avoid: Eliminate Risk Completely; When building a house and you notice that a specific geographical location is not a ideal so you avoid by building on at a different location Transfer: Pay premium to someone else to bear; contract out a particular part of project that has a lot of uncertainty Mitigate: Reduce Probability or Impact to acceptable level; Reduce impact on project by having backup pieces of equipment Accept: Go with plan

What are the inputs to the Plan Risk MGT process?

PM Plan Stakeholder Register Charter

What are Management Reserves?

Money we set aside to insulate the project from unknown unknowns (uncertainty)

______________________ helps insulate the project from schedule, budget, and resource risk by using time/money reserves and proactive MGT

Risk MGT

What are the outputs to the Plan Risk MGT process?

Risk MGT Plan

What are the inputs to the Plan Risk Responses process?

Risk MGT Plan Cost BL Risk Register SH Register

What are the inputs to the Implement Risk Responses process?

Risk MGT Plan Risk Register Risk Report

What are the inputs to the ID Risks process?

Risk MGT Plan Scope BL Duration Estimates Cost Estimates Stakeholder Register Procurement Documentation

What are the inputs to the Quantitative Risk Analysis?

Risk MGT Plan Scope BL Schedule BL Cost BL Cost Estimates and Forecasts Schedule Estimates and Forecasts Risk Register

What are the uses for Expected Monetary Value (EMV)?

Calculating contingency reserves Decision-making Quantitative Risk Analysis

What is the Risk Register

Captures details of ID'd individual risks the results of Perform Qualitative Risk Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor Risks are recorded in the risk register as those processes are conducted throughout project

Risk Response Strategies; Opportunities

Escalate: Hand off decision; find someone else well suited to optimize Exploit: Make event happen Share: share benefit with someone that can help capture it. Enhance: increase probability or impact to more valuable level Accept: go with plan; can't think of any strategy to make it worth it to go with opportunity; may cost too much.

______________________ are the too of project risk

Events

What are the processes in the Project Risk MGT Knowledge area?

Plan Risk MGT (PL) Identify Risks (PL) Perform Qualitative Risk Analysis (PL) Perform Quantitative Risk Analysis (PL) Plan Risk Responses (PL) Implement Risk Responses (EX)

What is the Risk Report?

Presents information on sources of overall project risk, together with summary info on ID'd individual project risks The results of Perform Qualitative Risk Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor Risks are also included

What are the outputs to the Implement Risk Responses process?

Proj Doc updates

What are the outputs to the Perform Qualitative Risk Analysis?

Proj Document Updates

______________________ seeks to increase the likelihood and impact of positive events while decreasing the likelihood and impact of negative events during the project

Proj Risk MGT

What are the outputs to the Plan Risk Responses process?

Project Doc Updates PM Plan Updates

A _______________ is a "known unknown," because we identify it and assign a probability (%) and impact ($) since we think it could happen

Risk

What are the inputs to the Monitor Risks Process

Risk Management Plan Risk Register WPD WPR

what are the inputs to the Perform Qualitative Risk Analysis?

Risk Register

What are the outputs to the ID Risks process?

Risk Register Risk Report

What are the three categories effecting risk attitudes?

Risk appetite: degree of risk willing to take Risk Tolerance: degree of risk one can withstand Risk Threshold: The measurement of one's Tolerance

When _____________ happen, they cost us time or money or save us time or money. The amount of money represents the __________________________________of the occurrence.

Risks Expected Monetary Value

Expected Monetary Value (EMV)

The monetary value of a risk exposure based on the risk's probability and impact in the risk matrix. This approach is typically used in quantitative risk analysis because it quantifies the risk exposure.

What is the purpose of the Plan Risk Responses process?

To allow for resources and cost reserves to handle risks

What is the purpose of the Perform Qualitative Risk Analysis process?

To determine the Probability and Impact of each risk for prioritization

What is the purpose of the Monitor Risks process?

To ensure risks are managed properly, efficiently and effectively

What is the purpose of plan risk MGT process?

To obtain stakeholder agreement and support of risk MGT plan

What is the purpose of the Implement Risk Responses process?

To put in place the strategies to handle risks

What is uncertainty

Unknown Unknowns

What are the outputs to the Quantitative Risk Analysis?

Update Risk Report

What is a SWOT analysis?

a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

What is a - risk?

a threat

What is residual risk?

amount of risk left after a risk response strategy has been applied i.e. take your car to the mechanic consistently but undertand that it could still break down

What is a + risk?

an opportunity

What is Individual Projects Risk?

an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives

What is secondary risk?

created by implementing a risk response, like sub-contracting the roofing out to a company that can do it faster and cheaper, but then the quality is questioned on inspection

What is the Risk MGT Plan?

describes how risk MGT activities will be structured and performed

What is Overall project risk?

effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications or variations in project outcome, both positive and negative

What are contingency reserves?

money we set aside to insulate the project from known unknowns (risk)

What is the purpose of the Perform Quantitative Risk Analysis process?

to determine contingency reserves and aid decision-making

What is the purpose of the Identify Risks process?

to raise project team risk anticipation and responsiveness