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29 Cards in this Set
- Front
- Back
What are the 4 basic ways to deal with risk?
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1. Avoid - Prevent
2. Mitigate - Lessen 3.Transfer - Pay someone else to accept it. ex. insurance 4. Accept - Passive is leaving the team to deal with risks, Active is establishing contingency reserve, including amounts of time, money or resources to handle the risks |
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What are the 6 processes in Risk Management?
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1. Plan Risk Management - develop plan for how to deal with risk
2. Identify Risks - gather the team and come up with a list of risks 3. Perform Qualitative Risk Analysis - determine probability and impact of each risk 4. Perform Quantitative Risk Analysis - assign numerical values for the probability and impact of each risk 5. Plan Risk Responses - plan responses to each risk 6. Monitor and Control Risk Responses - monitor discovered risks, look for new ones |
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What are the 6 inputs to Plan Risk Management?
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1. OPA
2. EEP 3. Cost Management Plan 4. Schedule Management Plan 5. Communications Management Plan 6. Project Scope Statement |
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What is the tool used for Plan Risk Management?
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1. Plan meetings and Analysis - Do all the risk planning by meeting with the team. Keep meeting with the team throughout the project to stay on top of risks.
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What is the output for Plan Risk Management?
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1. Risk Management Plan - guide to identifying and analyzing risks on your project. It tells you who identifies and analyzes the risk, how they do it, and how often it happens.
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What are some useful parts in the Risk Management Plan for managing risk?
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1. Categories - use to classify risk. Some are technical, others are external like weather.
2. Risk Breakdown Structure - looks like WBS, but breaks risk into categories. 3. Probability and impact guidelines - help to figure out how big a risk's impact is. Impact tells you how much damage the risk will cause to your project. minimal - severe. 4. Scale - figure out probability of risk, from likely to not. |
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Describe Identify Risks
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In Identify Risks the idea is to figure out every possible risk that might affect the project.
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What are the 6 inputs to Identify Risks?
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1, Cost and Schedule Management plan - includes activity cost estimates and activity duration estimates which are also inputs
2. Risk Management Plan 3. PMP 4. Scope Baseline 5. OPA 6. EPP |
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What are some informational gathering tools used for Identify Risks?
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1. Brainstorming - crank out ideas with team
2. Interviews - find everyone with an opinion about what could cause trouble on a project 3. The Delphi Technique - send anonymous surveys to expects 4. Root cause identification - analyzing each risk and figuring out whats actually behind it. Falling off cliff and having tent blown away are two separate risks but caused by the same thing.. WIND |
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What are some additional tools used in Identify Risks?
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1. Document Reviews - look at plans, requirements, and documents from OPA
2. Assumptions Analysis - look over the project assumptions. 3. Checklist analysis - using checklists specifically developed to help find risk 4. SWOT analysis - analyze Strengths, Weaknesses, Opportunities and Threats. Brainstorm strengths and weaknesses, then examine strengths to find opportunities and weaknesses to come up with threats. 5. Diagramming techniques - Ishikawa or fishbone diagrams from Quality Management to help find the root cause of a risk. Analysis systems to spot complexity |
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What is the output in Identify Risks?
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1. Updates to Risk Register - the most important part of risk management. Its a list of all the risks and some initial ideas about how you'd respond to them
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What are some good places to look for risk?
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1. Resources - may not be available when you need it
2. Critical Path - any delay will postpone the project 3. Assumptions 4. External factors - new rule, regulation, law, union, price. etc |
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Describe Perform Qualitative Risk Analysis?
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Where you look at each risk and figure out how likely it is and how big its impact will be.
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What are the inputs to Perform Qualitative Risk Analysis?
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1. Organizational Process Assets
2. Risk Register 3. Risk Management Plan 4. Project Scope Statement - Does the project use new technology? Is it complex? |
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What are some tools used in Perform Qualitative Risk Analysis?
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1. Risk data quality assessment - making sure that the information you're using is accurate.
2. Risk Urgency assessment - checking out how soon your're going to need to take care of a particular risk 3. Expert Judgement 4. Risk Probability and Impact Assessment - How likely and how impactful each risk is 5. Probability and impact matrix - All of the risks are plotted out with values 6. Risk categorization - grouping risks different to come up with a better strategy |
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What is the output used in Perform Qualitative Risk Analysis?
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1. Updated Risk Register
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Describe Quantitative Risk Analysis?
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Place numbers on the probability and impact of each risk
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What are the 6 inputs to Quantitative Risk Analysis?
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1. OPA
2. Risk Register 3. Cost Mangement Plan 4. Risk Management Plan 5. Schedule Management Plan 6. Project Scope Statement |
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What are some tools used in Quantitative Risk Analysis?
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1. Interviewing - get reasons, ranges of probability and impact, 3 point estimates
2. Probability Distribution - Look at time and cost estimate ranges in terms of statistical distribution 3. Expert Judgement 4. Sensitivity Analysis - isolate variables, like rain or wind damage. Use Tornado diagram and assume other data will stay constant 5. Expected Monetary value analysis - examine the costs of all of the paths you might take through the project and assign money value. Decision tree analysis 6. Modeling and Distribution - run project through modeling programs. Monte Carlo Analysis runs simulations with randomized risks and probabilities of them occuring |
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What is the output in quantitative risk analysis?
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Updates to the risk register
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What are the inputs to Plan Risk Response?
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1. Risk Register
2. Risk Management Plan |
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What are the 4 strategies for responding to positive risks?
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1. Exploit - Do everything to take advantage of an opportunity
2. Enhance - Make an opportunity more probably by influencing its triggers 3. Share - Harder to take advantage of opportunity, get another company to share it 4. Accept - Sometimes falls in lap, so accept it |
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How can response planning find even more risks?
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1. Secondary Risks - risks that come from a response to another risk. Dig a trench to stop landslides and someone falls in trench.
2. Residual Risks - remain after risk responses get implemented. Even though tent is reinforced, still a chance it could get blown away |
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What is the 3 outputs of Plan Risk Response?
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1. Update Risk Register - add risk responses
2. PMP Updates - update so that Change control can include the risk responses 3. Risk Related contract decisions |
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Describe Monitor and Control Risks
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Revisiting the status of the projects risks. Should be done at every status meeting.
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What are the inputs to Monitor and Control Risks?
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1. Risk Register
2. PMP 3. Work Performance Info 4. Performance reports - Both reviewed to see if risks are happening |
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What are some tools used in Monitor and Control Risks?
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1. Risk Reassessment - Regularly scheduled reassessment meetings to info and re validate risk register
2. Variance and trend analysis - Comparing the actual performance to the plan. Look for trends, patterns, etc 3. Reserve Analysis - keeping tabs on money reserved for risks 4. Risk Audits - When an outside party comes in and looks at risks 5. Technical performance measurement - comparing the performance of the project to plan 6. Status meetings - have risk review on the agenda |
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What are the outputs to Monitor and Control risks?
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1. Change Requests
2. Risk Register Updates 3. OPA updates 4. PMP updates 5. Project document updates - always an out from a Monitoring and Controlling process |
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What is a trigger for a risk?
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A trigger is an indication that a risk has occurred or is about to occur. Sometimes called risk symptoms or warning signs. Ex. A thunderstorm is a trigger for lightning damage. Unlikely to have lightning damage without a thunderstorm.
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