5. Risks

Question 1

What are the steps to be taken in risk analysis?

Answer 1

• describe the risk
• describe causes and conditions
• identify unacceptable risks (life/health)
  
  • > take preventive measures to eliminate unacceptable risks
• assess remaining risks
• Analyze dependencies
• decide on preventive or corrective measures
  
  • > yes/no + strategy

Question 2

Explain qualified risk assessment.

Answer 2

Qualified assessment of probability of occurrence and impact

• > high, medium, low
• > very high - high - low - very low

Question 3

Explain quantified risk assessment.

Answer 3

Quantified assessment of probability of occurrence and impact.

Based on following refined ranking:
e.g. In Numbers 9,8,6,4,2,1
Probability in percent, 100% 55% 5%
Impact in percent of project volume >10%, >2%

Question 4

Explain at least 3 risk management strategies.

Answer 4

Risk avoidance:

• reject the project
• exclude requirements associated with high risks

Risk transfer:

• insurance
• transfer risks to suppliers (outsourcing)

Risk reduction:
- reduce probability of occurrence by PREVENTIVE measures

Risk mitigation:
- reduce impact by CORRECTIVE measures

Risk acceptance:
- applicable to low-probability low-impact risks

Question 5

Risk management is more than risk planning. What else must be done during project execution?

Answer 5

Risk monitoring
-> ongoing process throughout the entire project life cycle.

“Lessons learned” at project close-out