Ch 11
___________ involves reducing the impact of a risk event by reducing the probability of its occurence
Risk mitigation
The risk register can be created with a simple Microsoft Word or Excel file
True
____________ is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgement
brainstorming
Top Ten Risk Item Tracking is a quantitative risk analysis tool.
false
____________ involves prioritizing risks based on their probability and impact of occurence
performing qualitative risk analysis
Performing qualitative and quantitative risk analyses are subprocesses of the _____________ process of project risk management
planning
_________ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk
risk enhancement
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
risk-seeking
Risks can have both negative and positive effects on meeting project objectives
true
__________ are unplanned responses to risk events used when project teams do not have contingency plans in place
workarounds
Unknown risks can be managed proactively
false
___________ involves deciding how to approach and plan the risk management activities for the project
planning risk management
_________________ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.
top ten risk item tracking
___________ are indicators or symptoms of actual risk events
triggers
A probability/impact matrix or chart 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
true
A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks
true
Contingency plans are predefined actions that the project team will take if identified risk event occurs
true
Identified risks may not materialize, or their probabilities of occurrence or loss may diminish
true
One possible response to managing negative risk is to accept the potential effects from the risk
true
Quantitative risk analysis need not be done for projects that are large and complex
true
What is the first step in a Monte Carlo analysis?
Assess the range for the variables being considered
The basic concept of the _____________ technique is to derive a consensus among a panel of experts who make predictions about future developments
Delphi
_____________ is a fact-finding technique that can be used for collecting information in face to face phone, e-mail, or instant messaging discussions
interviewing
__________ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk
risk acceptance
____________ involves eliminating a specific threat, usually by eliminating its causes
risk avoidance
A(n) ______________ is a hierarchy of potential risk categories for a project
risk breakdown structure
___________ involves doing whatever you can to make sure the positive risk happens
risk exploitation
A(n) __________ documents the procedures for managing risk throughout the project
risk management plan
A(n) ____________ is a list of risks that are low priority, but are still identified as potential risks
watch list
Project teams sometimes use ____________________—unplanned responses to risk events—when they do not have contingency plans in place.
work arounds
_____________ is the product of a risk event probability and the risk event's monetary value
EMV, Expected monetary value
____________ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.
Monte Carlo
The lower the earned monetary value calculation for a project, the chances of project success is higher
false, Expected monetary value (EMV) is the product of a risk event probability and the risk event's monetary value. Because the EMV provides an estimate for the total dollar value of a decision, you want to have a positive number, the higher the EMV, the better
System or process ____________________ are diagrams that show how different parts of a system interrelate.
flowcharts
The main output of the _________ process is the start of a risk register
identifying risks
Risk ___________ refers to reducing the impact of a risk event by reducing the probability of its occurence
mitigation
Potential problems that might occur on the project and how they might impede project success are _________ risks
negative
___________ involves numerically estimating the effects of risks on project objectives
performing quantitative risk analysis
__________ are 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 factors
____________ are predefined actions that the project team will take if an identified risk event occurs
contingency plans
____________ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level
contingency reserves/allowances
__________ is the process of understanding what potential events might hurt or enhance a particular project
contingency reserves/contingency allowances
_______________ involves 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
controlling risk
A(n) _______________ is a diagramming analysis technique used to help select the best course of action in situation in which future outcomes are uncertain
decision tree
Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
false
The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups
false
____________ involves determining which risks are likely to affect a project and documenting the characteristics of each
identifying risks
A(n) _____________ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
influence diagram
____________ involves taking steps to enhance opportunities and reduce threats to meeting project objectives
planning risk responses
The __________ lists the relative probability of a risk occurring and the relative impact of the risk occurring
probability/impact matrix
Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project __________ management knowledge area
procurement
_________ risks are risks that remain after all of the response strategies have been implemented
residual
A project _____________ is an uncertainty that can have a negative or positive effect on meeting project objectives.
risk
_______________ involves accepting the consequences should a risk occur
risk acceptance
A _____________ person achieves a balance between risk and payoff
risk-neutral
___________ risks refer to those that are direct results of implementing risk responses
secondary
A ___________ is a technique used to show the effects of changing one or more variables on an outcome
sensitivity analysis
__________ helps professionals to see the effects of changing one or more variables on an outcome
sensitivity analysis
The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events
true
The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and monitoring a top-ten master list of risks
true
The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value
true
Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project
false
The last step in project risk management is deciding how to address this knowledge area for a particular project by performing risk management planning
false
The term __________ is used to describe that the project team has identifies and analyzed.
known risks
Identifying risks is a subprocess of the __________ of project risk management
planning
The degree of uncertainty an entity is willing to take on in anticipation of a reward is
risk appetite
The _______________ is the person who will own or take responsibility for the risk
risk owner
A(n) ___________ is a document that contains results of various risk management processes
risk register
The main output of qualitative risk analysis is updating the _____________
risk register
_____________ involves allocating ownership of the risk to another party
risk sharing
________ involves shifting the consequences of a risk and responsibility for its management to a third party
risk transference
___________ is the amount of satisfaction or pleasure received from a potential payoff
risk utility
Risk utility rises at a decreasing rate for a ____________ person
risk-averse
Risk utility rises at a decreasing rate for a(n) ____________ person
risk-averse
