Project Risk Management - How to Manage Project Risk

The video tutorial covers the fundamentals of risk management in project management. It outlines a four-step process: identifying risks, analyzing them by likelihood and impact, developing strategies to manage them, and implementing these strategies. The tutorial emphasizes the importance of a risk register and offers practical advice on creating and using it effectively. It also highlights the need for simplicity in risk analysis and the use of various strategies to mitigate risks.

Why is risk management considered a core part of project management?

• Because projects are novel and uncertain.

• Because projects are always successful.

• Because projects are easy to predict.

• Because projects never change.

What is the first step in the risk management process?

• Analyzing risks

• Identifying risks

• Implementing plans

• Monitoring risks

Which method is NOT mentioned as a way to identify risks?

• Using a master list of risks

• Categorizing project aspects

• Ignoring unlikely risks

• Brainstorming with a group

What are the two principal components of a risk?

• Resources and schedule

• Cost and time

• Likelihood and impact

• Scope and quality

Why should risk analysis be kept simple?

• Because simple analysis is always correct

• Because projects are simple

• Because humans are bad at estimating uncertainty

• Because complex analysis is always wrong

Which strategy involves transferring risk to a third party?

• Transferring the risk

• Removing the risk

• Accepting the risk

• Reducing likelihood

What is a contingency plan?

• A plan to increase risks

• A plan to ignore risks

• A backup plan for handling risks

• A plan to remove all risks

What is the primary tool for risk management?

• Project schedule

• Risk register

• Budget plan

• Communication log

Why is it important to allocate each risk to a named individual?

• To increase project costs

• To reduce the number of risks

• To make the project more complex

• To ensure accountability and follow-up

What is the final step in the risk management process?

• Monitoring and reviewing

• Implementing plans

• Analyzing risks

• Identifying risks