PROJECT RISK MANAGEMENT

The Key processes of Project Risk Management are:

• Plan Risk Management, Identify Risks, Assess Risks, Mitigate Risks,Transfer Risks, and Document Outcomes.

• Identify Risks, Plan Risk Management, Evaluate Risks, Develop Risk Responses,Mitigate Risks, and

  Document Results.

• Identify Risks, Perform Qualitative Risk Validation, Perform Quantitative Impact Assessment, Develop Risk Response Strategies,Document Response Strategies, and Monitor Risk Responses.

• Plan Risk Management, ldentify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, Implement Risk Responses,and Monitor Risks.

Strategies typically used to deal with threats or risks that may have negative impacts on project objectives if they occur include all of the following EXCEPT:

• Interpreting

• Avoiding

• Transferring

• Mitigating

Risk transference nearly always involves:

• Eliminating risk through beta testing.

• Policies and procedures for a response system.

• Accepting a lower profit if some activities overrun their budget.

• Payment of a risk premium to the party taking on the risk.

In the Plan Risk Responses process, an accept strategy for a negative risk or threat indicates that the project team has decided:

• To agree with the project manager.

• To eliminate a specific risk or threat, to reduce the probability and / or impact of an adverse risk event to be within acceptable threshold limits, or to pursue an opportunity actively.

• Not to change the project management plan to deal with a risk, or it is unable to identify any other suitable response strategy.

• To purchase insurance, or to require performance bonds, warranties, and guarantees.

The primary output of the Identify Risks process is the:

• Risk register.

• Expected monetary value of the risk events.

• List of corrective actions.

• Risk mitigation plan.

All of the following are inputs to the Identify Risks process EXCEPT:

• Risk management plan.

• Scope baseline.

• Risk mitigation plan.

• Quality management plan.

Outputs from the Plan Risk Responses process include all of the following EXCEPT:

• Change requests.

• Corrective actions.

• Project documents updates.

• Project management plan updates.

Tools and techniques of the Perform Quantitative Risk Analysis process include:

• Contracting, contingency planning, alternative strategies, and insurance.

• Interviewing, historical results, workarounds, and response development.

• Checklists, damage control reports,standard allowances, and inspection.

• Expert judgment, data gathering, simulations, and decision tree analysis.

As an output of the Perform Quantitative Risk Analysis process, the risk register is updated. These updates generally include:

• Prioritized list of quantified risks.

• Qualitative analysis of the threats to ignore and opportunities to accept.

• Checklists, corrective actions, and qualified decision trees.

• Direction, resources, and contingency costs.

The outputs from the Monitor Risks process include all of the following EXCEPT:

• Project documents updates.

• Work breakdown structure (WBS).

• Change requests.

• Project management plan updates.