Project+ Chapter 7

Effect Based Risk Classification

A method of classifying risks based on the type of impact they may have on the project

Project Governance

A comprehensive methodology to control a project and ensure its success.

Risk Management

The process of identifying, analyzing, responding to, and monitoring project risks

Risk Management Purpose

To reduce threats, increase opportunities, and improve the likelihood of project success

Risk Management Process

Identify Risk, Analyze Risk, Treat Risk, and Monitor Risk

Risk Owner

The individual responsible for monitoring and managing a specific risk

Risk Manager

The person responsible for overseeing the project's overall risk management activities

Risk Assessment Meeting

A meeting where project participants identify, evaluate, and prioritize risks

Digital Transformation

The integration of digital technology into business processes to improve operations and value

Internal Risk

A risk that originates within the organization or project

Qualitative Risk Analysis

The evaluation of risks using subjective measures such as probability and impact rankings

Quantitative Risk Analysis

The evaluation of risks using numerical values and statistical analysis

Interconnectivity

Describes how risks interact with each other and create ripple effects across a project. Nothing exists in isolation, so every risk could potentially influence multiple aspects of a project if it were to occur.

Interconnectivity Analysis

involves evaluating how risks within your project might interact with each other, potentially exacerbating or mitigating the overall impact.

Quality Escape

A defect that reaches the customer because it was not detected before release

Notice of Escape

A formal notification that a defect escaped quality control and reached production or the customer

Cost of Quality

The total cost of preventing, detecting, and correcting defects

Probability Distribution

A representation of the likelihood of different possible outcomes

Probability Scale

A scale used to estimate how likely a risk is to occur

Impact Scale

A scale used to estimate the severity of a risk if it occurs

Probability and Impact Matrix

A matrix used to prioritize risks based on their probability and impact ratings

Failure Mode and Effects Analysis FMEA

A structured technique used to identify potential failures, their causes, and their effects

Scenario Analysis

A technique that evaluates possible future situations and their effects on the project

Negative Risk Response Strategies

Avoid, Mitigate, Transfer, and Accept

Positive Risk Response Strategies

Exploit, Enhance, Share, and Accept

Contingency Plan

A predefined plan that is executed if a specific risk occurs

Contingent Response Strategy

A response that is implemented only if predetermined risk conditions are met

Risk Register

A document used to record identified risks, their analysis, ownership, and response plans

Risk Register Contents

Risk ID, Risk Description, Risk Analysis Summary, Impact or Priority, Risk Ranking, Risk Owner, and Risk Response or Treatment

Risk Report

A summary of overall project risks, trends, and response activities

Risk Breakdown Structure RBS

A hierarchical diagram that organizes risks into categories

Product Transition

The process of transferring the completed product into operational use

Transition Plan

A document describing how the product will move from the project team to operational use

Go Live Efforts

The activities required to place the product or service into production

Operational Handoff

The formal transfer of responsibility from the project team to operational support

Internal Transition Plan

A transition plan used within the organization to prepare internal teams for operational support

External Transition Plan

A transition plan used to prepare customers, vendors, or external organizations for the project deliverable

Qualitative Risk Analysis vs Quantitative Risk Analysis

Qualitative analysis uses subjective rankings while quantitative analysis uses numerical measurements

Risk Owner vs Risk Manager

A risk owner manages a specific risk while the risk manager oversees the project's overall risk management process

Contingency Plan vs Contingent Response Strategy

A contingency plan is prepared in advance while a contingent response is triggered only when predefined conditions occur

Risk Register vs Risk Report

A risk register records detailed information about individual risks while a risk report summarizes the project's overall risk status

Probability Scale vs Impact Scale

A probability scale measures likelihood while an impact scale measures severity

Internal Transition Plan vs External Transition Plan

Internal transition plans prepare internal teams while external transition plans prepare customers or outside organizations

Quality Escape vs Notice of Escape

A quality escape is the defect reaching the customer while a notice of escape documents the occurrence