1 Project Risk Management Foundations Free Online FlashCards

What makes an uncertain event or condition a project risk?

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

When does uncertainty become relevant to project risk management?

Uncertainty is incomplete knowledge about future conditions or outcomes. It becomes relevant to risk management when it may affect project objectives.

What three parts make a useful risk statement?

A useful risk statement links a cause, an uncertain event or condition, and its possible effect.

How does a current issue differ from a risk?

A missed delivery that has already happened is an issue to manage; the possibility of further delays can still be a risk.

What is a project threat?

A threat is a risk with a possible adverse effect on project objectives.

What is a project opportunity?

An opportunity is a risk with a possible beneficial effect on project objectives.

Where can project risks originate?

Risks may arise within the project, such as from uncertain estimates or technical complexity, or from the organization and its surroundings, such as suppliers, markets, or regulation.

Why can the same event matter differently to different projects?

The same event can have different significance for different projects or stakeholders because its effects relate to the objectives and priorities at stake.

What project context should be clarified before managing risks?

Clarify objectives, assumptions, constraints, dependencies, and relevant internal and external conditions before managing risks.

How do risk appetite and thresholds support project decisions?

Decision authority, risk appetite, and thresholds help guide decisions and determine what level of exposure is acceptable.

When should project risk management take place?

Risk management should inform decisions from early project definition through delivery and transition, with attention renewed as plans and circumstances change.

What does it mean to integrate risk management into project work?

Consider risk as part of normal planning and decisions, including budgets, schedules, and procurement, rather than only in a separate register.