Risk Management Success Factors

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Questions and Answers

Which of the following are key success factors for risk management? (Select all that apply)

Individual commitment/responsibility (correct)
Organizational commitment (correct)
Tailoring risk effort (correct)
Integration with organizational project management (OPM) (correct)
Open and honest communication (correct)
Recognizing the value of risk management (correct)

Enterprise risk management (ERM) is an approach to identifying and managing risk that only focuses on threats to an organization.

False (B)

What does the acronym SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats

The ______ is a technique that examines the initiative from each of the SWOT perspectives to increase the breadth of considered risks.

SWOT analysis Signup and view all the answers

Match the following risk classification types with their description:

Known-Known = Facts and requirements, Managed as part of scope, Not a risk Known-Unknown = There is knowledge to identify probability and impact Unknown-Known = Knowledge exists in the community but not with the entity working on the endeavor Unknown-Unknown = Knowledge does not exist within the sphere of influence Signup and view all the answers

Monte Carlo simulations are only used for quantifying risk, not for identifying risks.

False (B) Signup and view all the answers

What are the four quadrants of risk classification?

Known-known, Known-unknown, Unknown-known, Unknown-unknown (C) Signup and view all the answers

Known-knowns are considered to be facts and therefore are not a risk.

True (A) Signup and view all the answers

Known-unknowns are often managed proactively.

True (A) Signup and view all the answers

Unknown-knowns are typically addressed through progressive risk elaboration integrated with execution of the endeavor.

True (A) Signup and view all the answers

Unknown-unknowns are typically addressed through organizational resilience.

True (A) Signup and view all the answers

Which of these is NOT included in the glossary definitions?

Risk Attitude (B) Signup and view all the answers

What does "Contingency Reserve" refer to?

Time or money allocated in the schedule or cost baseline for known risks with active response strategies. Signup and view all the answers

What does "Risk Avoidance" refer to?

A risk response strategy that involves eliminating the threat or protecting the portfolio, program, or project from its impact. Signup and view all the answers

Which of the following is NOT a risk response strategy?

Risk Acceptance (A) Signup and view all the answers

What does "Risk Identification" refer to?

The process of locating and profiling the characteristics of risks related to work objectives. Signup and view all the answers

What does "Risk Management" refer to?

Activities used to identify, analyze, respond to, and monitor risks at the enterprise, portfolio, program, or project level. Signup and view all the answers

What does "Risk Threshold" refer to?

The measure of acceptable variation around an objective that reflects the risk appetite of the organization and stakeholders. Signup and view all the answers

What does "Trigger Condition" refer to?

An event or situation that indicates that a risk is about to occur. Signup and view all the answers

Flashcards

Known-known

A fact or certainty known to the project team and incorporated into the project scope.

Known-unknown

A risk that the project team is aware of, including the potential consequences.

Unknown-known

A hidden fact or a blind spot that the project team may not be aware of during the project’s initial stages.