Chapter 11

Risk Management
STUDY
PLAY

Terms in this set (...)

Response
Risk ________ planning is taking steps to enhance opportunities and reduce threats to meeting project objectives
Sharing
Risk ______ involves allocating ownership of the risk to another party
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
Utility
Risk _______ or risk tolerance is the amount of satisfaction or pleasure received from a potential payoff
Risk neutral
Balancing risk and payoff
Interviewing
This is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions
Risk owner
The person who will own or take responsibility for each risk
Acceptance
Risk _________ involves accepting the consequences should a risk occur
Events
Risk _______ refer to specific, uncertain events that may occur to the detriment or enhancement of the project
Decision tree
A diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain
Watch list
A list of risks that are low priority, but are still identified as potential risks
Tolerance
The amount of satisfaction or pleasure received from a potential payoff; also called risk utility
Risk register
A document that contains the results of various risk management processes and that is often displayed in a table or spreadsheet format
EMV
The product of a risk event probability and the risk event's monetary value
Exploitation
Risk ________ is doing whatever you can to make sure the positive risk happens
Monte Carlo
This analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results
Flow charts
Diagrams that show how various elements of a system relate to each other
Work arounds
Unplanned responses to risk events that must be done when there are no contingency plans
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
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
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
Risk
An uncertainty that can have a negative or positive effect on meeting project objectives
Residual
These risks remain after all of the response strategies have been implemented
Contingency
These plans are predefined actions that the project team will take if an identified risk event occurs
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
Secondary
These risks are a direct result of implementing a risk response
Avoidance
Risk _________ involves eliminating a specific threat or risk, usually by eliminating its causes
Runaway
This type of project has significant cost or schedule overruns and often does no risk management at all
Risk breakdown
This structure is a hierarchy of potential risk categories for a project
Known
Risks that the project team has identified and analyzed and can be managed proactively
Delphi
This technique is used to derive a consensus among a panel of experts who make predictions about future developments
Risk averse
Having a low tolerance for risk
Transference
Risk __________ occurs when the consequences of a risk and responsibility for its management are shifted tp a third party
Triggers
Indicators or symptoms of actual risk events
Seeking
Risk _______ people have a high tolerance for risk
Risk management
A plan that documents the procedures for managing risk throughout a project
Enhancement
Risk ___________ is changing the size of an opportunity by identifying and maximizing key drivers of the positive risk
Mitigation
Risk _______ is reducing the impact of a risk event by reducing the probability of its occurrence
Sensitivity
This analysis is a technique used to show the effects of changing one or more variables on an outcome
Unknown
Risks that have not been identified and analyzed so they cannot be managed proactively
Influence
Diagrams that represent decision problems by displaying essential elements, including decisions, uncertainties and objectives, and how they influence each other