RISKS

Question 1

Types of risk that could affect a project

Answer 1

• Technical Risk
• Market Risk
• Financial Risk
• Schedule Risk
• Resource Risk
• External Risks
• Quality Risk
• Scope Creep
• Communication Risk
• Security Risk

Question 2

Risk Management

Answer 2

Identifying risks to reduce uncertainties and lessen impacts of risks.

Question 3

5 Methods of managing risk

Answer 3

Risk avoidance - stop the risk before it happens.

Risk transfer - pass risk to someone else, through contracts or insurance.

Risk mitigation (reduction) - Invest in training of staffs to reduce risks impact.

Risk acceptance - Accept the risk and deal with it if it happens.

Risk monitoring - Keep watching and managing risks throughout the project, adjust strategies to address emerging risks.

Question 4

Why is risk management important ?

Answer 4

Find risks early

Avoid interruptions

Better decisions

Build confidence

Have backup plans for changes

Save time and money

Fix and plan to reduce risk

Question 5

When should risk management occur?

Answer 5

At the planning stage

During design, development, testing, and after changes.

New risks can appear anytime, so it’s a continuous process

Question 6

Risk Checklist

Answer 6

Find possible risks that might hurt the project.

can be used as a guide during project planning and Help plan and prepare to handle risks.

Make sure all risks are found and managed.

Question 7

RISK REGISTER

Answer 7

A document that records information about List of risks, Iikelihood of risks,
Potential impact, Planned responses.

PURPOSE: Organize and track risks, Help manage risks during the project.

Question 8

CONTENT OF A RISK REGISTER

Answer 8

*Risk ID (a unique number or name)

*Risk Description (what the risk is)

*Likelihood (chance of it happening)

*Impact (how bad it would be)

*Priority/Severity (how serious it is)

*Response Plan (what to do about it)

*Owner (who is responsible)

*Status (current progress or updates)

Question 9

PROJECT RISK

Answer 9

Affect project completion within time, cost, scope, and quality constraints.

When do they arise?:
During planning phase
During execution phase
During delivery phase

What it affects:
Deadlines
Budget
Scope (what’s included)
Quality standards

Managed by project managers throughout the project lifecycle.

Question 10

BUSINESS RISK

Answer 10

What it affects:
Daily Operations

Planning Strategies

Profitability (making money)

• Beyond just the project
  Examples:
• Market conditions (trends & economy)
• Customer behavior (buying habits)
• Competition (rivals in the market)
• Long-term sustainability (future survival)

Safeguard long-term success and survival of the company

Question 11

Risk Tolerance Line

Answer 11

Shows the limit of risk a project or organization is willing to accept.

Keeps risks within safe boundaries.

Question 12

Risk Impact

Answer 12

How much damage or benefit happens if the risk occurs

Big impact = big effect (good or bad)

Question 13

Risk Proximity / coming

Answer 13

How soon a risk might happen

Closer risk = more likely to happen soon

Question 14

Risk Exposure

Answer 14

Total possible loss from risks

Bigger exposure = bigger possible loss

Question 15

Qualitative methods for calculating risk exposure.

Answer 15

Qualitative:
Uses words or categories (high, medium, low)

Focuses on describing risk rather than exact numbers

Think: “Feel it, don’t count it”

Question 16

Quantitative methods for calculating risk exposure.

Answer 16

Quantitative:
Uses numbers and formulas (e.g., $ loss, probability %)

Focuses on measuring risk precisely

Think: “Count it, measure it”

Question 17

3 methods that can be used to identify risks

Answer 17

■ BRAINSTORMING
Talk openly to find many risks. sparks creativity.

■ RISK CHECKLISTS
List of common risks to check. Acts as a guide, helps avoid missing risks.

■ SWOT ANALYSIS -
Looks at Strengths, Weaknesses, Opportunities, Threats.
Finds risks inside and outside the project.

Question 18

Generic software risk

Answer 18

Common problems in software projects

Happens in many different projects associated with software development and implementation.

Question 19

Why generic risk are not useful for specific projects

Answer 19

Too general → not specific to projects

Doesn’t match project’s goals or needs

Can trick you into thinking all risks are covered