LM7-CH5 SUMMARY

What is risk in project management?

An anticipatable uncertainty that may cause problems if not addressed early.

T/F: A risk is often viewed as a problem waiting to happen.

TRUE

A risk is often viewed as a problem waiting to [blank].

happen

What is the probability range of a risk?

Between 0% and 100%, but never 100%.

T/F: The probability of a risk would be between 0% – 100% but never 100%.

TRUE

The probability of a risk is between [blank]% and [blank]%, but never 100%.

0; 100

Why must risks be anticipated during planning?

To address uncertainties and avoid negative effects on project outcomes.

T/F: A project manager must anticipate and address risks as early as possible during project planning.

TRUE

A project manager must anticipate and address risks during [blank] planning.

project

What is the most probable risk in software projects?

Schedule overrun.

T/F: The most probable risk is schedule overrun.

TRUE

The most probable risk in software projects is [blank] overrun.

schedule

List some common risks in software projects.

Technology availability assumptions, new methodology misunderstandings, constraints miscalculation, requirement changes, incompetence, unrealistic expectations.

T/F: Misunderstanding requirements or constant change of requirements are common risks.

TRUE

Common risks include misunderstanding or constant change of [blank].

requirements

How should project managers build an initial risk list?

List unclear deliverables, unresolved task issues, and resource risks.

T/F: The first step in risk identification is to create a list of those “unclear” items for each deliverable.

TRUE

Risk identification starts with listing [blank] items for each deliverable.

unclear

What is risk prioritization?

Ordering risks based on importance, tolerability, or potential damage.

T/F: Risk prioritization is ordering risks based on set criteria.

TRUE

Risk prioritization orders risks based on set [blank].

criteria

What is recovery cost in risk analysis?

Effort or financial cost to solve a problem if a risk occurs.

T/F: Measuring recovery cost is assigning risks into ordered categories such as low, medium, or high.

TRUE

Recovery cost categories may be [blank], [blank], or [blank].

low; medium; high

What alternative to low/medium/high categorization exists?

Numerical scale (e.g., 1–10) dividing recovery cost into increments.

T/F: Recovery cost can also be assigned a numerical category, such as 1 to 10.

TRUE

Recovery cost numerical scheme divides cost into [blank] equal increments.

10

What is risk mitigation?

Planning activities to reduce, minimize, or avoid risks.

T/F: Risk mitigation may reduce, minimize or totally avoid a given risk.

TRUE

Risk [blank] may reduce, minimize, or totally avoid a risk.

mitigation

What are examples of risk mitigation strategies?

Hiring extra staff, offering incentives, using alternative integration methods.

T/F: Hiring an extra person for backup is an example of risk mitigation.

TRUE

Hiring an extra [blank] for backup is an example of risk mitigation.

person

What factors influence mitigation decision-making?

Ease of mitigation, probability of success, cost of mitigation.

T/F: The cost of each mitigation alternative is just an estimate and carries risk.

TRUE

Mitigation decision-making includes ease, probability of success, and [blank].

cost

What is mitigation value cost?

A combined metric of success probability and dollar cost of a mitigation option.

T/F: Mitigation value cost includes estimated probability of success and actual dollar cost.

TRUE

Mitigation value cost includes success probability and [blank] cost.

dollar

Why must a risk plan include target dates?

To ensure risks are removed after mitigation or dependency changes.

T/F: A risk plan would be of limited utility if it did not include target dates by which the risks were to be eliminated.

TRUE

A risk plan must include [blank] dates by which risks are eliminated.

target

When is a risk item removed from the risk list?

After mitigation success or change in dependency factors.

T/F: A risk item may be removed from the list after successful mitigation or a change in dependency factor.

TRUE

A risk item may be removed after successful [blank] or dependency factor change.

mitigation