Risk Management and Mitigation Strategies

Project assurance verifies the adequacy of project controls to identify unknown risks, ultimately enhancing confidence in project execution.

Milestones serve as critical decision points to assess the quality and completeness of deliverables, guiding the project's direction through its lifecycle.

A value promise articulates the expected benefits and outcomes of a project, ensuring robust strategic alignment throughout the project's lifecycle.

<p>Intra-team conflicts often arise from disagreements among team members, leading to delays and ineffective collaboration.</p> Signup and view all the answers

<p>Stage gate reviews assess project viability and ensure that objectives align with the value promise, facilitating informed decision-making.</p> Signup and view all the answers

<p>Residual risk refers to the likelihood or consequence of a risk that remains after mitigation strategies have been implemented.</p> Signup and view all the answers

<p>The TECOPS checklist helps ensure that technical, economical, commercial, environmental, political, and sustainable factors are considered in project planning and execution.</p> Signup and view all the answers

<p>The four main strategies for risk mitigation are Treat or Reduce, Take or Accept, Transfer, and Terminate or Avoid.</p> Signup and view all the answers

<p>Intent to create a legal relationship and the legal capacity to act are essential for ensuring that a contract is legally binding and enforceable.</p> Signup and view all the answers

<p>Probabilistic risk management aids in project planning by estimating the likelihood and impact of risks, allowing for informed decision-making.</p> Signup and view all the answers

<p>Value of Work Done (VOWD) indicates the monetary value of goods and services received, reflecting the technical or physical progress of a project.</p> Signup and view all the answers

<p>Risk transfer can be achieved through insurance, sharing the risk with partners, contracting out certain tasks, diversifying investments, or hedging.</p> Signup and view all the answers

<p>Risk management is considered continuous because it must adapt to the evolving nature of a project, influencing scope, planning, and execution at all phases.</p> Signup and view all the answers

<p>The contractor is responsible for executing and completing the work as defined in the scope for a fixed price, bearing all associated risks.</p> Signup and view all the answers

<p>Project estimates serve as a basis for control, assess viability, obtain funding, manage cash flows, allocate resources, estimate durations, and prepare tenders.</p> Signup and view all the answers

<p>EPCM stands for Engineering, Procurement, and Construction Management, which involves overseeing the entire project lifecycle from engineering through to construction.</p> Signup and view all the answers

<p>In unit rate contracts, the contractor carries the 'productivity risk' as they are paid a fixed price for each unit completed.</p> Signup and view all the answers

<p>Direct costs include labor costs like direct labor and non-labor costs directly linked to the project's execution.</p> Signup and view all the answers

<p>Cost plus fixed fee contracts pay the contractor a set fee plus costs, while cost plus percentage fee contracts pay based on a percentage of the incurred costs.</p> Signup and view all the answers

<p>Project monitoring and control are vital for ensuring adherence to schedules and budgets, and for managing risks effectively.</p> Signup and view all the answers

<p>Indirect costs, specifically general and administrative expenses, cover overhead costs like administration and labor training.</p> Signup and view all the answers

<p>The portfolio sponsor is the senior manager responsible for the overall success and alignment of the portfolio with business strategy.</p> Signup and view all the answers

<p>Fit with business strategy and time to completion.</p> Signup and view all the answers

<p>It provides maximum flexibility in staff usage and allows individual experts to contribute to multiple projects.</p> Signup and view all the answers

<p>The portfolio manager is responsible for organizing the portfolio management process but not for making decisions.</p> Signup and view all the answers

<p>Market type assesses the environment in which the project will operate and its potential for success.</p> Signup and view all the answers

<p>Subjectivity in decision-making can lead to biases when evaluating projects.</p> Signup and view all the answers

<p>The portfolio analyst provides strategic overviews and insights regarding the portfolio.</p> Signup and view all the answers

<p>It helps in determining how well a project will perform against competitors and its potential market advantage.</p> Signup and view all the answers

<p>The three key characteristics are uniqueness, temporariness, and focus.</p> Signup and view all the answers

<p>PMBoK stands for Project Management Body of Knowledge and is delivered by the Project Management Institute.</p> Signup and view all the answers

<p>Activities during the initiation phase include developing proposals, gathering information, and conducting feasibility studies.</p> Signup and view all the answers

<p>The primary focus of PRINCE2 is on continued business justification and managing projects by exception.</p> Signup and view all the answers

<p>A project being temporary means it has a defined beginning and end.</p> Signup and view all the answers

<p>The relationship indicates that the ability to influence project outcomes decreases over time while costs often increase.</p> Signup and view all the answers

<p>A key activity is developing the design and estimating costs and expected returns.</p> Signup and view all the answers

<p>Defined roles and responsibilities enhance accountability and clarity within the project team.</p> Signup and view all the answers

<p>To leverage discipline expertise and facilitate open discussions about concerns and risks.</p> Signup and view all the answers

<p>Product quality refers to meeting customer requirements, while process quality focuses on consistently delivering conformance.</p> Signup and view all the answers

<p>To assess measurements and report the results to decision-makers.</p> Signup and view all the answers

<p>A WBS breaks down the project into manageable pieces, aiding in organization and clarity.</p> Signup and view all the answers

<p>Required input, activities, output (deliverables), and communication requirements.</p> Signup and view all the answers

<p>Project assurance evaluates the quality of decisions made throughout the project.</p> Signup and view all the answers

<p>It prevents negative surprises during the execution phase and ensures alignment of expectations.</p> Signup and view all the answers

<p>To identify risks early, suggest mitigations, and enhance value in the project.</p> Signup and view all the answers

<p>It helps average out input and ensures comprehensive coverage of project components.</p> Signup and view all the answers

<p>A feasibility study, schedules, deliverables, and a budget estimation.</p> Signup and view all the answers

<p>The activities include Front End Engineering Design (FEED), detailed design and engineering, and procurement of materials and equipment.</p> Signup and view all the answers

<p>A lump sum contract requires the contractor to complete the work for a fixed price, while a cost plus fee contract reimburses the contractor for actual costs plus an additional fee.</p> Signup and view all the answers

<p>Cost estimates provide a basis for control, assess project viability, and help in allocating resources effectively.</p> Signup and view all the answers

<p>EPCM stands for Engineering, Procurement, and Construction Management, which involves overseeing all aspects of project execution.</p> Signup and view all the answers

<p>Project monitoring and control aim to ensure that the project remains on track regarding time, budget, and scope.</p> Signup and view all the answers

<p>Unit rate contracts consider the productivity risk of the contractor as they are paid a fixed price for each unit produced.</p> Signup and view all the answers

<p>Direct costs are directly attributed to project activities, such as labor costs, while indirect costs cover general administrative expenses not directly tied to a single project task.</p> Signup and view all the answers

<p>A Cost Plus Incentive Fee contract includes reimbursement of costs plus an additional fee that is partly based on performance criteria.</p> Signup and view all the answers

<p>The effectiveness of value added in projects depends on the application of Value Improvement Practices (VIPs) and the people involved in the process.</p> Signup and view all the answers

<p>Benchmarking supports project management by comparing business processes and performance metrics to industry best practices, aiding in project selection, planning, and delivery.</p> Signup and view all the answers

<p>Integrated teamwork is important because it aligns perspectives of owners and contractors, fostering collaboration to address project complexities effectively.</p> Signup and view all the answers

<p>Risk management in project management involves identifying and managing uncertainties that may affect achieving project objectives.</p> Signup and view all the answers

<p>A risk is defined by the probability of occurrence of a perceived threat or opportunity and the magnitude of its impact on project objectives.</p> Signup and view all the answers

<p>Safety and sustainability are new focus areas that emphasize minimizing risks to people and the planet while ensuring profitable project outcomes.</p> Signup and view all the answers

<p>The Project Definition Rating Index (PDRI) is used to measure the degree of scope development during the front-end development phases of industrial projects.</p> Signup and view all the answers

<p>Capturing and analyzing lessons learned is crucial for making systemic corrections and implementing improvements throughout the project lifecycle.</p> Signup and view all the answers