Podcast
Questions and Answers
What is the first step in identifying potential project risks?
What is the first step in identifying potential project risks?
- Create the Risk Register
- Review the project schedule
- Consider everything that could possibly go wrong (correct)
- Assess the probability and impact of risks
How can the probability of a risk occurring be quantitatively expressed?
How can the probability of a risk occurring be quantitatively expressed?
- 10% (correct)
- Critical
- High
- Moderate
Which of the following is NOT a typical area of risk for marketing projects?
Which of the following is NOT a typical area of risk for marketing projects?
- Project management
- Project definition
- Staffing
- Project duration (correct)
What does the Risk Score formula consider?
What does the Risk Score formula consider?
Which risk probability factor corresponds to a likelihood of 0.5?
Which risk probability factor corresponds to a likelihood of 0.5?
In the context of risk assessment, what does a risk with an impact factor of 10 indicate?
In the context of risk assessment, what does a risk with an impact factor of 10 indicate?
Which method is NOT mentioned as a way to identify project risks?
Which method is NOT mentioned as a way to identify project risks?
What is typically included in a Risk Register?
What is typically included in a Risk Register?
Which of the following statements about risk management is true?
Which of the following statements about risk management is true?
What type of planning focuses on how risks will be managed in a project?
What type of planning focuses on how risks will be managed in a project?
What does a probability/impact matrix assess?
What does a probability/impact matrix assess?
Which of the following is NOT a risk response strategy?
Which of the following is NOT a risk response strategy?
What is residual risk?
What is residual risk?
If a parent buys a warranty to cover a potential phone screen crack, which risk response strategy is being used?
If a parent buys a warranty to cover a potential phone screen crack, which risk response strategy is being used?
What does a contingency plan involve?
What does a contingency plan involve?
In the context of risk management, what does mitigation mean?
In the context of risk management, what does mitigation mean?
How can the weather risk for an outdoor wedding be mitigated?
How can the weather risk for an outdoor wedding be mitigated?
Which of the following is an example of risk acceptance?
Which of the following is an example of risk acceptance?
If a risk occurs even with preventive measures in place, what can be said about the remaining risk?
If a risk occurs even with preventive measures in place, what can be said about the remaining risk?
Which term describes actions taken to avoid a risk entirely?
Which term describes actions taken to avoid a risk entirely?
Study Notes
Project Risk Planning
- During the initiation phase of a project, it's crucial to identify and assess potential risks to ensure a successful project outcome.
- Risk identification involves brainstorming and discussing potential issues with various stakeholders, including project team members, clients, and experts.
- The process might involve analyzing previous projects, conducting SWOT analyses, and carefully examining the project scope for potential vulnerabilities.
- Risk assessment helps determine both the likelihood of a risk occurring and its potential impact on the project.
- Probability and impact may be assessed qualitatively using terms like "high," "medium," or "low" or quantitatively using percentages for probability and dollar amounts for impact.
- A Risk Score is calculated by multiplying the probability factor (e.g., 0.8 for likely) with the impact factor (e.g., 10 for critical).
- A visual tool known as a probability/impact matrix or chart helps categorize risks based on their likelihood and impact for a qualitative assessment.
- Each risk identified should be documented in a comprehensive Risk Register, which also includes a risk score for each identified risk.
Managing Project Risks
- Once risks are identified, risk management involves creating strategies to address them proactively.
- Risk Acceptance means acknowledging the risk and deciding not to take any action, hoping for the best.
- Risk Mitigation involves taking steps to reduce the likelihood of a risk occurring or minimizing its impact.
- Risk Avoidance completely eliminates the risk by changing the project plan or taking alternative action.
- Risk Transfer shifts the risk to another party, often via insurance or contractual agreements.
- Residual Risks refer to risks that remain even after implementing risk response strategies.
- Contingency Plans are actions taken in response to a risk actually occurring. They serve as backup plans to recover from a risk event.
- All risk mitigation strategies and risk avoidance actions, along with contingency plans, should be documented in the Risk Register.
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Description
Test your knowledge on the key concepts of project risk planning, including risk identification and assessment techniques. This quiz will cover strategies such as brainstorming with stakeholders, SWOT analyses, and calculating risk scores. Ensure your understanding of how to effectively manage project risks for successful outcomes.
