Term
| Learning Objectives for this lesson |
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Definition
Objectives
Describe Risk Management Process
Define Risk Management
Describe Risk Response strategies
Describe the use of contingency and management reserves
List types of risk
Describe SWOT analysis
Describe the difference between negative and positive risk
Draw a risk matrix |
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Term
| Project Risk Management Processes |
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Definition
Plan Risk Management
Identify Risks
Perform Quantitative Risk Analysis
Perform Qualitative Risk Analysis
Plan Risk Responses
Monitor and Control Risks
Poor Infants Pop Pretty Poop Pieces |
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Term
| Project Risk Management Processes: Plan Risk Management: |
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Definition
| is the process of defining how to conduct risk management activities for a project. |
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Term
| Project Risk Management Processes: Identify Risks: |
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Definition
| Defining which risks may affect the project and documenting their characteristics. |
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Term
| Project Risk Management Processes: Perform Qualitative Risk Analysis: |
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Definition
| Process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact |
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Term
| Project Risk Management Processes: Perform Quantitive Risk Analysis: |
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Definition
| Process of numerically analyzing the effect of identified risk on overall project objectives.[Planning Process Group] |
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Term
| Project Risk Management Processes: Plan Risk Responses: |
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Definition
| The process of developing options and actions to enhance opportunities and to reduce threats to project objectives. |
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Term
| Project Risk Management Processes: Monitor and Control Risks: |
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Definition
| Defining which risks may affect project and documenting their characteristics. |
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Term
| Plan Risk Management Processes – |
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Definition
-The process of how to conduct risk management activities
- Success of the other five risk management processes will be enhanced by careful and explicit planning
- The degree, type and visibility of risk management should be commensurate with both the risks and importance of the project
- Important to provide sufficient resources and time for risk management activities, and risk evaluation |
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Term
| Contents of Risk Management Plan |
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Definition
- Budgeting
- Risk Management Methodology
- Roles and Responsibilities
- Risk categories
- Frequency of Risk evaluation / audits
- Stakeholder tolerances
- Definitions of risk probability and impact
BRRRFSD |
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Term
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Definition
- System/process flowcharts
- SWOT analysis
- Influence diagrams
- Cause and effect diagrams (or Ishikawa/fishbone diagrams) |
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Term
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Definition
- List of identified risks:
- What EVENT may occur, causing what IMPACT or
- If CAUSE, EVENT may occur, leading to EFFECT.
- Evaluate and try to determine the root causes of risks
- List of potential responses |
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Term
| Probability Impact Matrix |
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Definition
| Probability and Impact Matrix uses the combination of probability and impact scores of individual risks and ranks/ prioritizes them for easy handling of the risks. In other words, the probability and impact matrix helps to determine which risks need detailed risk response plans. |
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Term
| Cost Risk Simulation Results |
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Definition
| Has to do with statistical risk modeling or decision analysis – computer Simulated model - a lot of organizations don’t have the capacity to do this |
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Term
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Definition
| Takes into account different probabilities that things will happen and how To navigate decisions – square = decision node, circle = chance node and Triangle = end of branch node |
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Term
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Definition
- Mitigating Risk
Reducing the likelihood an adverse event will occur.
Reducing impact of adverse event.
- Avoiding Risk
Eliminating the risk completely by changing the project plan
- Accept the Risk
Making a conscious decision to accept the risk.
- Transferring Risk
Paying a premium to pass the risk to another party.
Requiring Build-Own-Operate-Transfer (BOOT) provisions. |
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Term
| Managing Risk (Positive/Opportunities) |
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Definition
- Exploit
Involves eliminating uncertainty associated with risk by - ensuring the opportunity occurs
- Share
Eliminating the risk completely by changing the project plan
- Enhance
Identify drivers of opportunities to maximize impact or opportunities
- Accept
Take advantage of opportunity if it occurs but not pursue it |
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