Risk

Question 1

What are the 4 steps of Project Risk Management?

Answer 1

1. Identify
2. Analyze/Assess the risk (risk consequences)
3. Action the risk (risk response)
4. Tracking (monitoring and controlling the risk)

Question 2

Name some internal sources of risks.

Answer 2

1. Technical risk:
   - Risk encountering technical problems
   with end item.
   - Risk due to nature of the end item
   or the process to create it.
2. Assumptions:
   - Risk compiling the budget/schedule
   - Uncertainty at beginning of project

Question 3

Name the 3 risk analysis approaches.

Answer 3

1. Quantative (1 in 1000 fatalities per year)
2. Qualitative (high or low risk)
3. Semi-quantitative (combine objective and
   subjective risk estimations

Question 4

How are risk consequences quantified?

Answer 4

Probability × Impact

Question 5

What 5 actions can be taken to handle risks or plan responses?

Answer 5

1. Avoidance
2. Transfer
3. Reduction and control
4. Contingency plan
5. Acceptance

Question 6

Risk tracking and response:

What is a risk register?

Answer 6

1. A risk register contains risks ordered with greatest risk consequence first.
2. It continuously monitor projects for trigger symptoms or previously identified risks and new emerging unidentified risks.

Question 7

Risk tracking and response:

What is a risk management plan?

Answer 7

A risk management plan…

1. Specifies methods to identify, profile, assess,
   monitor and handle risks.
2. Names the risk officer and
3. Contains a budget and schedule reserve

Question 8

Risk tracking and response:

What is a risk profile?

Answer 8

A risk profile is :

The likelihood, impact, trigger symptoms, monitoring methods and response strategy for each identified risk.

Question 9

Risk tracking and response:

Who is the risk officer?

Answer 9

The risk officer oversees the identification, assessment, monitoring and handling of risks.

Question 10

Risk tracking and response:

What is the risk schedule and budget reserve?

Answer 10

Time and dollar amount in schedule and budget to cover risks.

Question 11

Risk tracking and response:

How can risks be communicated?

Answer 11

By using policies, procedures and culture to ensure PM is quickly informed about problems and risks.

Question 12

Name some external sources of risks

Answer 12

1. Market conditions
   2. Interest and exchange rates
   3. Competitor’s actions
   4. Labour and resource availability
   5. Subcontractor failure
   6. Physical environment
   7. Economic and social factors