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Project Management - Risk

Key Concepts:

Terms in this set (34)

Brainstorming
A group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.
Decision tree
A support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility.
Flowcharts
A type of diagram that represents an algorithm, workflow or process, showing the steps as boxes of various kinds, and their order by connecting them with arrows. This diagram representation illustrates a solution model to a given problem.
Influence diagram
A compact graphical and mathematical representation of a decision situation. _______is directly applicable in team decision analysis, since it allows incomplete sharing of information among team members to be modeled and solved explicitly.
Interviewing
A conversation between two or more people where questions are asked by the interviewer to elicit facts or statements from the interviewee. Interviews are a standard part of qualitative research.
Monte Carlo analysis
A broad class of computational algorithms that rely on repeated random sampling to obtain numerical results.
Probability/impact matrix
A ______that is used during risk Assessment to define the various levels of risk as the product of the harm probability categories and harm severity categories. This is a simple mechanism to increase visibility of risks and assist management decision making.
Residual risks
The risk or danger of an action or an event, a method or a (technical) process that, although being abreast with science, still conceives these dangers, even if all theoretically possible safety measures would be applied (scientifically conceivable measures).
Risk
The intentional interaction with uncertainty. Uncertainty is a potential, unpredictable, unmeasurable and uncontrollable outcome, risk is a consequence of action taken in spite of uncertainty.
Risk appetite
The level of risk that an organization is prepared to accept, before action is deemed necessary to reduce it. It represents a balance between the potential benefits of innovation and the threats that change inevitably brings.
Risk averse
The behavior of humans (especially consumers and investors), when exposed to uncertainty, to attempt to reduce that uncertainty. It is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff.
Risk breakdown structure
A depiction of the identified project risks arranged in a hierarchy by category.
Risk factors
A variable that is quantitatively associated with a disease or other outcome, but direct alteration of the risk marker does not necessarily alter the risk of the outcome.
Risk management plan
A document that a project manager prepares to foresee risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix.
Risk neutral
_______________ preferences are neither risk averse nor risk seeking. A ________________party's decisions are not affected by the degree of uncertainty in a set of outcomes, so this party is indifferent between choices with equal expected payoffs even if one choice is riskier.
Risk seeking
A _______________ is a person who has a preference for risk.
Risk tolerance
A more specific measure of the degree of uncertainty that an investor is willing to accept in respect of negative changes to its business or assets, as opposed to risk appetite being a broad-based level.
Sensitivity analysis
The study of how the uncertainty in the output of a mathematical model or system (numerical or otherwise) can be apportioned to different sources of uncertainty in its inputs.
Workarounds
A bypass of a recognized problem in a system. A workaround is typically a temporary fix that implies that a genuine solution to the problem is needed.
Opportunities
Positive risks result in _________.
Threats
Negative risks result in ______ .
Risk management
A process therefore to identify, analyze, respond, monitor and control risks that may arise when working on a project_______.
Positive
Responses to ________ risks include exploitation, enhancement, sharing and acceptance.
Negative
Responses to _______ risks include avoidance, mitigation, transference and acceptance.
Quantitative and qualitative
Risk appraisal is accomplished by what two approaches?
Cyclical
The Risk Management Plan is a _____ process that occurs throughout the duration of the project because only identified risks can be properly managed.
Quantitative
This type of analysis quantifies the impact of risk in relation to costs and schedule.
Qualitative
This type of analysis can use a grading scale (high, medium, or low) or a numeric scale and can be used to generate a risk score.
Risk register
A log that catalogs the identified risks to the project and documents how the team plans to respond. It acts as a central repository for all risks identified by the organization.
Quantify
Decision tree analysis, Expected Monetary Value (EMV) and Monte Carlo method are techniques used to ____ risks.
Contingency plans
A plan devised for an outcome other than in the usual (expected) plan. It is often used for risk management when an exceptional risk that, though unlikely, would have catastrophic consequences.
Delphi technique
A structured communication technique or method, originally developed as a systematic, interactive forecasting method which relies on a panel of experts. _
Risk strategies
Risk strategies or risk management plan is a document that a project manager prepares to foresee risks, estimate impacts, and define responses to issues.
Risk activities
Is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities
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