2 Risk Management Planning and Governance Free Online FlashCards

What does project risk management coordinate?

Project risk management coordinates the identification, assessment, response, and monitoring of uncertainty that could affect project objectives; risks can be threats or opportunities.

What structure makes a risk statement useful?

Describe a risk as cause → uncertain event → effect. This links the source of uncertainty to what might happen and how it could affect objectives.

Why should project risk management consider opportunities?

Consider opportunities as well as threats. Opportunities may increase project value, provided pursuing them does not compromise other objectives, such as launch readiness.

What is the sponsor’s role in project risk governance?

The sponsor or senior accountable executive owns the business case, provides oversight, and makes or secures decisions about risks beyond the project manager’s authority.

What does the project manager do in risk management?

The project manager coordinates the risk process, ensures risks are reviewed and recorded, and reports the project’s overall exposure.

What is a risk owner responsible for?

A risk owner monitors a particular risk, recommends action, and keeps its status current. The owner needs enough authority or access to influence the risk.

How does a response owner differ from a risk owner?

A response or action owner carries out a specific agreed response. This person may be different from the risk owner, who monitors the risk overall.

When should a team establish risk criteria?

Agree on risk criteria before scoring risks so the team assesses and prioritizes them consistently.

What dimensions can risk criteria assess?

Criteria can include probability, impact on objectives, time to impact or urgency, and the exposure the organization is willing to accept.

Why can the same risk threshold differ between projects?

Thresholds should reflect organizational risk appetite and project objectives. The same potential cost increase may be tolerable in one project but unacceptable in another.

How does a risk management plan differ from a risk register?

The risk management plan describes how the project will manage uncertainty; the risk register records specific risks, assessments, owners, actions, and status.

What key elements does a risk management plan typically record?

A practical plan records objectives and scope, methods and tools, roles and authority, criteria and thresholds, timing and resources, communication and records, and review arrangements.