Chapter 11

Transference

Risk __________ occurs when the consequences of a risk and responsibility for its management are shifted tp a third party

Enhancement

Risk ___________ is changing the size of an opportunity by identifying and maximizing key drivers of the positive risk

Unknown

Risks that have not been identified and analyzed so they cannot be managed proactively

Known

Risks that the project team has identified and analyzed and can be managed proactively

Contingency

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

Secondary

These risks are a direct result of implementing a risk response

Residual

These risks remain after all of the response strategies have been implemented

Sensitivity

This analysis is a technique used to show the effects of changing one or more variables on an outcome

Monte Carlo

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

Interviewing

This is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions

Risk breakdown

This structure is a hierarchy of potential risk categories for a project

Delphi

This technique is used to derive a consensus among a panel of experts who make predictions about future developments

Runaway

This type of project has significant cost or schedule overruns and often does no risk management at all

Probability

A ________/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

Decision tree

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

Risk register

A document that contains the results of various risk management processes and that is often displayed in a table or spreadsheet format

Watch list

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

Risk management

A plan that documents the procedures for managing risk throughout a project

Risk

An uncertainty that can have a negative or positive effect on meeting project objectives

Risk neutral

Balancing risk and payoff

Reserves

Contingency________ or allowances are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level

Influence

Diagrams that represent decision problems by displaying essential elements, including decisions, uncertainties and objectives, and how they influence each other

Flow charts

Diagrams that show how various elements of a system relate to each other

Risk averse

Having a low tolerance for risk

Triggers

Indicators or symptoms of actual risk events

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

Sharing

Risk ______ involves allocating ownership of the risk to another party

Mitigation

Risk _______ is reducing the impact of a risk event by reducing the probability of its occurrence

Utility

Risk _______ or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff

Seeking

Risk _______ people have a high tolerance for risk

Events

Risk _______ refer to specific, uncertain events that may occur to the detriment or enhancement of the project

Exploitation

Risk ________ is doing whatever you can to make sure the positive risk happens

Response

Risk ________ planning is taking steps to enhance opportunities and reduce threats to meeting project objectives

Acceptance

Risk _________ involves accepting the consequences should a risk occur

Avoidance

Risk _________ involves eliminating a specific threat or risk, usually by eliminating its causes

Top ten

The ________ Risk Item Tracking is a qualitative risk analysis tool that helps to identify risks and maintain an awareness of risks throughout the life of a project

Tolerance

The amount of satisfaction or pleasure received from a potential payoff; also called risk utility

Risk owner

The person who will own or take responsibility for each risk

EMV

The product of a risk event probability and the risk event's monetary value

Fall Back

These plans are 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

Work arounds

Unplanned responses to risk events that must be done when there are no contingency plans