9 - Risk Management

A set of 45 vocabulary flashcards covering key terms and concepts from Lecture 9 on Risk Management and related safety methodologies.

Objectives of Project Risk Management

• Increasing positive events

• reducing negative impacts on project objectives.

Risk Management Planning

Process of defining how risk activities will be conducted for a project.

Risk Identification

Iterative activity that determines which risks may affect a project and documents their characteristics.

Qualitative Risk Analysis

Assessment that prioritizes risks by evaluating their probability and impact to establish response priorities.

Quantitative Risk Analysis

Numerical evaluation of identified risks’ effects on overall project objectives.

Risk Response Planning

Developing and selecting actions to enhance opportunities and reduce threats to project objectives.

Risk Monitoring and Control

Ongoing tracking of identified, residual, and new risks while evaluating response effectiveness.

Risk Appetite

Degree of uncertainty an organization is willing to accept in pursuit of reward.

Risk Tolerance

Amount or volume of risk an organization can withstand.

Risk Threshold

Point at which risk becomes unacceptable to a stakeholder and requires action.

Known Risks

Threats or opportunities that have been identified and analyzed, allowing proactive planning.

Unknown Risks

Unforeseen events that cannot be proactively managed because they are not identified.

Risk Register

Documented list of identified risks, root causes, responses, and current status.

Risk Categories

Standard groupings (e.g., technical, external, organizational) used to organize potential risk sources.

Probability-Impact Matrix

Lookup table that ranks risks by combining likelihood and consequence values.

Impact Scale

Project-specific ranking that reflects the significance of a risk’s effect on objectives.

Plan Risk Management Components

• Methodology

• Roles and Responsibilities

• Budgeting

• Timing

• Risk Categories

Risk Attitude

Organization’s overall balance between risk-taking and risk avoidance.

Risk Probability

Likelihood that a particular risk event will occur, usually expressed on a relative scale.

Impact Criteria – Cost Increase

Scale specifying percentage cost overruns associated with various impact levels (e.g., >40% = very high).

Risk Audit

Formal examination of the effectiveness of risk responses and the risk process.

Risk Classification Matrix

Chart combining consequence severity and frequency to categorize overall risk.

6 Processes of Project Risk Management

1. Plan Risk Manag

2. Identify Risks

3. Perform Qualitative Risk Analysis

4. Perform Quantitative Risk Analysis

5. Plan Risk Response

6. Control Risks

Qualitative Risk Analysis

• cost-effective and rapid process for establishing priorities for risk planning

Control Risk Outputs

1. Risk Register Update

2. Recomennded Corrective Actions/Preventive Actions=

Control Risk Tools and Techniques

• Risk assessment

• risk aduits

• variance and trends analysis

• technical performance measurements

• reserve analysius

• status meetings