Project Management Chapter 11

What is the first step in a Monte Carlo analysis?

Assess the range for the variables being considered.

A _____ person achieves a balance between risk and payoff.

risk-neutral

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

Contingency plans

_____ 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

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

Monte Carlo

_____ 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 unplanned responses to risk events used when project teams do not have contingency plans in place.

Workarounds

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.

influence diagram

Identifying risks is a subprocess of the _____ process of project risk management.

planning

Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.

planning

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

Risk utility rises at a decreasing rate for a _____ person.

risk-averse

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.

risk-seeking

A _____ is a technique used to show the effects of changing one or more variables on an outcome.

sensitivity analysis

_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.

Interviewing

_____ involves prioritizing risks based on their probability and impact of occurrence.

Performing qualitative risk analysis

_____ involves allocating ownership of the risk to another party.

Risk sharing

_____ involves determining which risks are likely to affect a project and documenting the characteristics of each.

Identifying risks

_____ involves numerically estimating the effects of risks on project objectives.

Performing quantitative risk analysis

_____ involves deciding how to approach and plan the risk management activities for the project.

Planning risk management

_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.

Planning risk responses

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.

Risk acceptance

_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.

Risk enhancement

_____ involves doing whatever you can to make sure the positive risk happens.

Risk exploitation

A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.

decision tree

_____ risks refer to those that are direct results of implementing risk responses.

Secondary

_____ involves eliminating a specific threat, usually by eliminating its causes.

Risk avoidance

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.

Risk mitigation

_____ involves shifting the consequence of a risk and responsibility for its management to a third party.

Risk transference