1 Foundations of Project Risk Management Free Online FlashCards

What is a project risk?

A project risk is an uncertain event or condition that, if it occurs, could affect one or more project objectives positively or negatively.

How does a risk differ from an issue?

A risk might happen; an issue has already happened and needs action.

What three parts make a risk statement specific?

State the cause, the uncertain event, and the possible effect on an objective. This makes the risk specific enough to assess and manage.

What should a team clarify before identifying risks?

Clarify objectives, success measures, scope, assumptions, constraints, stakeholders, and the environment. Risk assessment is meaningful only in relation to what the project aims to achieve.

What do risk appetite and thresholds establish?

Risk appetite describes how much uncertainty decision-makers can accept; thresholds identify levels that require escalation.

How do risk categories help a project team?

Categories prompt systematic searches and help group related risks. They do not replace a clear description, and a risk may fit more than one category.

What inputs and techniques can help identify risks?

Review the scope, schedule, assumptions, dependencies, lessons learned, and stakeholder concerns; workshops, interviews, checklists, and expert input can help.

How does qualitative risk analysis prioritize risks?

Estimate each risk’s likelihood and effect on objectives. A qualitative method can rate likelihood and impact, then use a matrix or agreed rules to prioritize risks.

What are common response strategies for threats?

A team may avoid the threat, reduce its likelihood or impact, transfer or share exposure where appropriate, or accept it with a contingency plan.

What are common response strategies for opportunities?

A team may seek to secure an opportunity’s benefit, increase its likelihood or impact, share it, or accept it.

What is a secondary risk?

A secondary risk is a new risk created by a response to another risk; it should also be assessed.

What should teams do while monitoring risks?

Monitor triggers, reassess likelihood and impact, check whether responses are working, and escalate risks that exceed authority or agreed thresholds.