How is a risk measured?
Combo of likelihood of the threat or opportunity and magnitude of its impact on objectives
SWOT is a technique used to analyse the context for risk. What does SWOT stand for?
Strengths
Weaknesses
Opportunities
Threats
PESTLE is a technique used to analyse the context for risk. What does PESTLE stand for?
Political
Economic
Social
Technological
Legal
Environmental
In the risk management approach, what is a key item needing to be recorded from the project board?
Risk tolerance
What categories are used to identify and prioritise risks?
- Risk cause
- Risk event
- Risk effect
The relationship between these can be expressed as a threat or a opportunity
Risk analysis can be a qualitative or quantitative approach. What does a qualitative approach assess?
Minimum:
- Probability of the risk
- Impact
May also include:
- Proximity
- Velocity
What is a risk matrix?
A way of plotting all risks and their estimations on a table to shw their probability vs impact
Also shows the tolerance level for acceptable risks
What happens when risks exceed the set tolerance?
The PM will escalate the risk to the project board
Risk analysis can be a qualitative or quantitative approach. What does a quantitative approach assess?
- Impact on cost
- Impact on time
Uses modelling techniques to calculate
What is residual risk?
The impact of the risk that still remains after a threat is reduced instead of being removed
What is a secondary risk?
Risks that occur as a result of invoking a risk response
What is the risk owner responsible for?
- Management, monitoring and control of the assigned risk.
- Implementation of response to address a threat or maximise an opportunity
What is the risk action owner responsible for?
Owns the action to address a risk
PRINCE2’s risk management technique involves 4 steps. What are these?
- Identify: review plan (the context and objectives) to identify threats and opportunities
- Assess: prioritise risks and assess combined risk profile
- Plan: decide risk responses and monitoring arrangements
- Implement: establish monitoring arrangements and execute actions
Also includes communication - to let stakeholders know about any steps.
What is the risk register a part of?
The project log
Whose responsibility is it to maintain the risk register throughout the project lifecycle?
Project Manager
Whose responsibility is it to review the risk management practices, ensuring they are performed within the risk management approach?
Project assurance
Whose responsibility is it to ensure the risk management approach is appropriate?
Project Executive
Whose responsibility is it to help identify, assess and control risks?
Team Manager
How does the risk practice relate to the ‘ensuring business justification’ principle?
Assessing whether the risks identified have a material impact on the business case
How does the risk practice relate to the ‘tailor to suit the project’ principle?
Aligning the risk management approach to the project size and complexity
How does the risk practice relate to the ‘manage by stages’ principle?
De-risking the project by having stop-go decisions at critical points at the end of project stages
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Module 2 - Intro to PRINCE210
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Module 3 - PRINCE 2 Principles6
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Module 4 - People7
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Module 5 - Organising17
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Module 6 - Starting up a Project8
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Module 7 - Business Cases12
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Module 8 - Plans14
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Module 9 - Quality15
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Module 10 - Risks22
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Module 11 - Controlling a Stage and Managing Product Delivery16
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Module 12 - Managing a Stage Boundary6
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Module 13 - Issues11
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Module 14 - Progress16
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Module 15 - Closing a Project4
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Module 16 - Directing a Project4
