Study 5 Project Risk Management with 12 free online flashcards. Review key terms, definitions, and concepts with this interactive flashcard deck.
What is project risk management?
Project risk management is an ongoing, iterative process of identifying uncertain events, assessing their likelihood and effects, choosing responses, and monitoring whether those responses remain appropriate.
How does a risk differ from an issue?
A risk is an uncertain future event; once it occurs, it becomes an issue that must be managed.
When should a project team identify risks?
Identify risks throughout the project by involving the team and relevant stakeholders and reviewing scope, schedule, budget, assumptions, resources, dependencies, suppliers, and external conditions.
How should a project risk be clearly described?
Describe a risk by linking its cause, uncertain event, and possible effect. This structure helps the team assess it and choose a targeted response.
What is a risk register used for?
A risk register records identified risks and useful details such as probability, impact, priority, owner, response actions, trigger signs, and status. An owner makes follow-up responsibility explicit.
What does risk assessment estimate?
Risk assessment estimates likelihood and potential effects on objectives such as cost, schedule, scope, quality, or benefits.
How does qualitative risk analysis prioritize risks?
Qualitative analysis rates probability and impact on agreed scales, then uses a probability–impact matrix to prioritize risks. Define rating meanings and priority thresholds in advance for consistent ratings.
What does an EMV estimate mean?
EMV is an average across uncertain outcomes, not a prediction that the project will incur exactly that amount.
How do avoid and mitigate responses differ?
Avoid a threat by changing the plan so it cannot affect the project; mitigate it by reducing its likelihood or impact, such as qualifying a backup supplier.
What should a team remember when transferring or sharing a threat?
Transfer or share a threat’s exposure, often through an agreement or insurance. Responsibility may shift or be distributed, but the project may still face consequences.
What does accepting a threat involve?
Accept a threat by taking no proactive action beyond monitoring, or prepare a contingency plan in case it occurs.
What are the common responses to project opportunities?
For an opportunity, exploit it to ensure it occurs, enhance its likelihood or benefit, share it with a partner, or accept it without special action.