What is project risk in this course?
The probability and consequence of not achieving project objectives.
Differentiate pure vs. business risk.
Pure (hazard) risk has loss only; business (speculative) risk can result in loss or gain.
Name the four categories of project risk used here.
Schedule, cost, quality, and people risks.
List the core questions in the risk management process.
What can go wrong? How to minimize impact? What to do before an event? What to do when it occurs?
Two sources for identifying risks from prior work?
Project data/files and documented lessons learned.
What structure helps link risks to scope?
Risk Breakdown Structure (RBS) aligned with the WBS (diagram referenced).
Four responses to negative risks?
Avoid, reduce, transfer, accept.
Four strategies for positive risks?
Exploit, share, enhance, accept.
Define a contingency plan.
Predefined actions to reduce/mitigate impact if a foreseen risk occurs.
Difference between budget and management reserves.
Budget reserves tie to identified work-package risks; management reserves cover major unforeseen, project-level risks.
Purpose of time buffers.
Compensate for unplanned delays (e.g., severe risk or merge activities).
One benefit of formal change control.
Tracks costs of changes and keeps WBS/performance measures intact.
