Podcast
Questions and Answers
What is the purpose of using a Risk Breakdown Structure (RBS)?
What is the purpose of using a Risk Breakdown Structure (RBS)?
Which technique is most commonly used for analyzing risks during the risk assessment phase?
Which technique is most commonly used for analyzing risks during the risk assessment phase?
What does a risk profile typically consist of?
What does a risk profile typically consist of?
How should managers prioritize risks that require attention?
How should managers prioritize risks that require attention?
Signup and view all the answers
What is the main goal of the second step in the risk management process?
What is the main goal of the second step in the risk management process?
Signup and view all the answers
Which types of risks are given the highest priority in addressing according to the risk severity matrix?
Which types of risks are given the highest priority in addressing according to the risk severity matrix?
Signup and view all the answers
Organizing multiple risk teams in large projects is primarily intended to?
Organizing multiple risk teams in large projects is primarily intended to?
Signup and view all the answers
What must managers do during the risk assessment step after identifying potential risks?
What must managers do during the risk assessment step after identifying potential risks?
Signup and view all the answers
What is the definition of risk in project management?
What is the definition of risk in project management?
Signup and view all the answers
At what stage of a project is the occurrence of risk events the greatest?
At what stage of a project is the occurrence of risk events the greatest?
Signup and view all the answers
Which of the following is a positive consequence of a risk?
Which of the following is a positive consequence of a risk?
Signup and view all the answers
What is the primary purpose of the Risk Management Process's first step?
What is the primary purpose of the Risk Management Process's first step?
Signup and view all the answers
How do organizations typically aid in identifying and analyzing risks?
How do organizations typically aid in identifying and analyzing risks?
Signup and view all the answers
Which of the following reflects the nature of risk events?
Which of the following reflects the nature of risk events?
Signup and view all the answers
What can be said about risks as a project approaches its final stages?
What can be said about risks as a project approaches its final stages?
Signup and view all the answers
Which of the following is NOT a type of risk mentioned?
Which of the following is NOT a type of risk mentioned?
Signup and view all the answers
What does the Failure Mode and Effects Analysis (FMEA) add to the risk severity matrix?
What does the Failure Mode and Effects Analysis (FMEA) add to the risk severity matrix?
Signup and view all the answers
Which response to risk involves changing the project plan to eliminate the risk?
Which response to risk involves changing the project plan to eliminate the risk?
Signup and view all the answers
What is considered a contingency plan?
What is considered a contingency plan?
Signup and view all the answers
What characterizes management reserves in contingency funds?
What characterizes management reserves in contingency funds?
Signup and view all the answers
What is the main purpose of a risk register?
What is the main purpose of a risk register?
Signup and view all the answers
What response type is characterized by being willing to take advantage of an opportunity without active pursuit?
What response type is characterized by being willing to take advantage of an opportunity without active pursuit?
Signup and view all the answers
What best describes risk mitigation?
What best describes risk mitigation?
Signup and view all the answers
Which response type involves assigning ownership of an opportunity to another party?
Which response type involves assigning ownership of an opportunity to another party?
Signup and view all the answers
What is a typical first step in managing changes in a project?
What is a typical first step in managing changes in a project?
Signup and view all the answers
How are budget reserves categorized in contingency funds?
How are budget reserves categorized in contingency funds?
Signup and view all the answers
What does the risk control process mainly involve?
What does the risk control process mainly involve?
Signup and view all the answers
What does the opportunity management involve?
What does the opportunity management involve?
Signup and view all the answers
What type of changes does a change management system typically handle?
What type of changes does a change management system typically handle?
Signup and view all the answers
Study Notes
Project Management for Computer Scientists - Risk Management
- Risk is an uncertain event or condition that impacts project objectives, positively or negatively.
- Examples of risks include delayed deliveries, accidents, illness, equipment malfunction and changes in technical requirements.
- Risks can be unforeseen, like the 2008 financial crisis, or even have unexpected positive outcomes, such as a reduction in material prices.
- Risk events are often greatest in the early stages of a project.
Risk Reduction Over Time
- As projects progress, risks tend to decrease as uncertainties are resolved, such as confirming the viability of a technology or the feasibility of project timelines.
Proactive Risk Management
- Proactive risk management aims to anticipate and mitigate risks before they occur.
- It minimizes surprises and impact of undesirable events.
- Prevention is emphasized over reactive measures.
The Risk Management Process - Step 1: Risk Identification
- Identifying all possible risks affecting the project.
- Risk Breakdown Structures (RBS) help in conjunction with Work Breakdown Structures (WBS) to identify and analyze risks.
- Using RBS reduces the chance of missing risk events.
- Large projects often use multiple risk teams.
The Risk Management Process - Step 2: Risk Assessment
- Step 1 produces a list of potential project risks.
- Not all these risks need attention; some are minor.
- Managers prioritize risks based on importance and need for attention.
- Scenario analysis helps examine the significance of each risk event.
- Significance is evaluated in terms of probability and impact.
The Risk Management Process - Step 3: Risk Response Development
- A decision is made on how to address identified and assessed risks.
- Responses to risk can be classified into:
- Mitigating risk: decrease the chance of risk, or reduce its impact.
- Avoiding risk: changing the project plan to eliminate the risk.
- Enhancing opportunities: increasing the chance/impact of a positive risk event.
- Accepting risk: being willing to deal with risk if it occurs.
- Transferring risk: passing the risk responsibility to another party (e.g., insurance).
The Risk Management Process - Step 4: Risk Response Control
- Summarizing the results of the first three steps into a risk register.
- The risk register documents risks, descriptions, probability, impact, responses, contingency plans, owners, and current statuses.
- Risk control includes executing response strategies, monitoring triggering events, initiating contingency plans and watching for new risks.
Contingency Planning
- Contingency plans are alternative plans for dealing with foreseen risks if they occur.
- Contingency plans reduce or mitigate the negative impact of risk events.
- The absence of a contingency plan may cause delays in dealing with potential problems.
- Contingency plans use risk response and consider the trigger event.
Opportunity Management
- Opportunities are events with a positive impact on project objectives.
- Example opportunities include favorable weather or lower fuel prices.
- Types of responses to an opportunity include exploiting, sharing, enhancing, and accepting opportunities.
Contingency Funds
- Contingency funds are set up to cover both known and unknown project risks.
- Allocation is done before the event occurs.
- Contingency funds are divided into budget reserves for specific risks and management reserve for risks unidentified.
Change Control Management
- Changes are inevitable in projects.
- Change management systems are for reporting, controlling, and recording changes.
- Changes may come from various sources, including customers, owners, and team members.
- Common change categories include scope, design, and additions.
- Project contingency plans, in implementation, present adjustments to baselines and schedules.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz explores the concepts of risk management specifically for computer scientists. It covers the identification, reduction, and proactive management of risks within project management. Understand how to mitigate potential risks and ensure project success through effective strategies.
