Project Management CPST 3500 Test 3 CHAPTER 8

act, plan, check, do graph
act, plan, check, do graph
fishbone diagram
fishbone diagram
LIST: importance of project risk management
– the PM’s objective: is not the removal of all risk, this simply can’t be done, but to identify and manage risks to the benefit of the project
– risks on a project can be a good thing if managed appropriately
– the main objectives of risk management are to increase the probability and impact of positive outcomes and descries the probability and impact of negative outcomes
LIST: 10 reasons for risk management
– makes aggressive risk-taking possible
– decriminalizes risk
– sets up projects for success with honest evaluation of issues
– bounds uncertainty
– provides minimum-cost downside protection
– protects against invisible transfers of responsibility
– save part of failed effort
– maximizes opportunity for personal growth
– protects management from getting blindsided
– focuses attention where it is needed
LIST: 5 steps in the risk management planning process
– risk management planning: deciding how to approach and plan the risk management activities for the project
– risk identification: determining which risks are likely to affect a project and documenting their characteristics
– qualitative risk analysis: characterizing and analyzing risks and prioritizing their effects on project objectives
– quantitative risk analysis: measuring the probability and consequences of risk
– risk response planning: taking steps to enhance opportunities and reduce threats to meeting project objectives
DEF: risk identification
– identify as many risks as possible for the upcoming project with the knowledge that you can never see them all
– risk identification is not a one time process; but should be a continuous process of team members and stakeholders looking for new issues that may effect the success of the project
LIST: 6 risk identification techniques
– broad organizational categories
– analogy
– brainstorming
– interviews
– delphi technique
– SWOT analysis
DEF: brainstorming
a non-structured or semi-structured method of eliciting ideas from a group with the goal of generating a complete list of ideas
LIST: 6 risk register contents
– risk: name of the risk along with a short description
– trigger event: explanation of the event or events that signal the person monitoring that this risk is about to happen or has happened
– responsible: name of person (preferred) or group/department responsible for monitoring the risk and executing mitigation activities
– consequence: explanation of the impact to the project if the risk occurs
– probability: an estimation of the likelihood the risk will materialize and affect the project.
– mitigation: explanation of the strategy being used to lessen the chances the risk will occur
DEF: the probability and impact matrix
aids the project team in prioritizing which risks need more attention based on their probability of occurring or the size of the impact to the project or both
decision tree with EMV diagram
decision tree with EMV diagram
LIST: 4 strategies of risk response planning
– risk avoidance: eliminating a specific threat or risk, usually by eliminating its cause
– risk acceptance: accepting the consequences should a risk occur without trying to control it
– risk transference: shifting the consequences of a risk and responsibility for its management to a third party internal or external to the organization
– risk mitigation: reducing the impact of a risk event by reducing the probability of its occurrence
LIST: 3 mitigation strategies
– fallback plans
– contingency plans
– contingency reserves
LIST: 5 risk management process steps IN ORDER
1. build/choose the risk management plan
2. identify risks
3. risk assessment
4. complete the risk register
5. complete the risk management plan (budget, schedule of activities, any specific tools needed)
LIST: 9 broad categories of risk
– people (human resources)
– technology (changes)
– quality and performance issues
– customers
– vendors
– management
– funding
– political issues or legal issues
– market forces
DEF: SWOT analysis
– Strengths, Weaknesses, Opportunities, Threats
– offers a framework with which to conduct a brainstorming session, sticky not exercise or a Delphi Technique session
– key benefit of this technique is a focus on both sides of each issue; strengths vs. weaknesses, opportunities vs. threats