PART 1 Section 11

Contents of Risk Register: ______, ______, ______.

1). List of identified Risks 2). Potential Risk Owners 3). List of potential Risk Responses.

Practices for Project Risk Management: ______, ______, ______.

1). Non-event Risk 2). Project Resilience 3). Integrated Risk Management

Project Risk Management Processes Include: ______, ______, ______, ______, ______, ______, ______.

1). Plan Risk Management 2). Identify Risks 3). Perform Qualitative Risk Analysis 4). Perform Quantitative Risk Analysis 5). Plan Risk Responses 6). Implement Risk Responses 7). Monitor Risks

2 Types of Non-event Risks: ______, ______.

1). Variability Risk 2). Ambiguity Risk

Prompt List

A predetermined list of risk categories that might give rise to individual project risks and that could also act as sources of overall project risk.

Simulation

A quantitative risk analysis that combines effects of individual project risks and other sources of uncertainty to evaluate their potential impact on achieving project objectives.

Individual Project Risks

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

Project Risk Management

The processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.

Risks exist at 2 levels: ______, ______.

1). Individual Project Risks 2). Overall Project Risks

Strategies for Project Risk: _______, _______, _______, _______, _______.

1). Avoid: project risk is significantly negative and outside of agreed-upon risk thresholds for project. 2). Exploit: Project risk is significantly positive and outside agreed-upon risk thresholds for project. 3). Transfer/Share: project risk is high but org is unable to address it effectively, transfers to third party to better manage risk on behalf of org. 4). Mitigate/Enhance: Involve changing the level of overall project risk to optimize the chances of achieving the project's objectives. 5). Accept: No proactive risk response strategy is possible to address project risk and org may continue with project despite being outside agreed-upon thresholds.

Strategies for Threats: _______, _______, _______, _______, _______.

1). Escalate: Project team/sponsor agrees a threat is outside of the scope of the project or authority. 2). Avoid: Project team acts to eliminate the threat or protect the project from it's impact. 3). Transfer: Shifting ownership of a threat to a third party to manage the risks and bear the impact if threat occurs. 4). Mitigate: Action is taken to reduce the probability of occurrence and/or impact of threat. 5). Accept: Acknowledges the existence of a threat, but no proactive action is taken.

Strategies for Opportunities: _______, _______, _______, _______, _______.

1). Escalate: Project team/sponsor agrees opportunity is outside of scope or exceed authority. 2). Exploit: Selected for high-priority opportunities where the organization ensures opportunity is realized. 3). Share: Transferring ownership of opportunity to third party. 4). Enhance: Increase the probability and/or impact of opportunity 5). Accept: acknowledges existence but no action is taken.

Secondary Risks

Are risks that arise as a direct result of implementing a risk response.

Risk Threshold

Express the degree of acceptable variation around a project objective.

TRUE/FALSE: Undertaking a robust analysis does not depend on the availability of high quality data about individual project risks?

FALSE: It Does depend on high quality data.

TRUE/FALSE: Project risk management aims to identify and manage risks that are addressed by the other project management processes.

FALSE: It aims to manage risks that are NOT addressed by the other project management processes.

Risk Breakdown Structure

Hierarchical representation of potential sources of risks.

Plan Risk Management

Process of defining how to conduct risk management activities for a project. Key Benefit: - Ensures that the degree, type, & visibility of risk management are proportionate to both risks and the importance of the project to the organization and other stakeholders.

Plan Risk Responses

Process of developing options, selecting strategies, and agreeing on actions to address overall project risks exposure, as well as to treat individual project risks. Key Benefit: - It identifies appropriate ways to address overall project risk and individual project risks.

Identify Risks

Process of identifying individual project risks as well as sources of overall project risk, and documenting their characteristics. Key Benefit: - Documentation existing individual project risks and the sources of overall project risks.

Implement Risk Responses

Process of implementing agreed-upon risk response plans. Key Benefit: - Ensure that agreed-upon risk responses are executed as planned in order to address overall project risk exposure, minimize individual project threats, and maximize individual project opportunities.

Monitor Risks

Process of monitoring the implementation of agree-d-upon risks response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project. Key Benefit: - Enables project decisions to be based on current information about overall project risk exposure and individual project risk

Perform Quantitative Risk Analysis

Process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives. Key Benefit: - Quantifies overall project risk exposure, and it can also provide additional quantitative risk information to support risk response planning.

Perform Qualitative Risk Analysis

Process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics. Key Benefit: - Focuses efforts on high priority risks.

TRUE/FALSE: Unmanaged threats may result in issues or problems such as delay, cost overruns, performance shortfall or loss of reputation?

TRUE

TRUE/FALSE: A common problem with project risk management is that project teams spend effort in identifying and analyzing risks and responses to those risks but not no action is taken to manage the risks?

TRUE

TRUE/FALSE: A common way to structure risk categories is with a Risk Breakdown Structure?

TRUE: It helps the project team consider the full range of sources from which individual project risks may arise.

Overall Project Risks

The effect of uncertainty on the project as a whole from all sources.

Variability Risk

Uncertainty exists about some key characteristics of a planned event or activity or decision. *1 type of non-event Risk

Ambiguity Risk

Uncertainty exists about what might happen in the future. *1 type of non-event Risk.