Which risk management processes are planning processes?
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Which risk management processes are executing processes?
NONE
Which risk management processes are monitoring and controlling processes?
Monitor and Control Risks
What is the PRIMARY output from Plan Risk Management?
Risk Management Plan
What is the PRIMARY output from Identify Risks?
Risk Register
What is the PRIMARY output from Perform Qualitative Risk Analysis?
Risk Register Updates
What is the PRIMARY output from Perform Quantitative Risk Analysis?
Risk Register Updates
What are the PRIMARY two outputs from Plan Risk Responses?
Risk Register Updates
Risk-related contract decisions
What are the PRIMARY two outputs from Monitor and Control Risks?
Risk register updates
Change requests
What are the two primary characteristics of risk for PMP purposes?
It is related to an uncertain event
It may affect the project for good or for bad
True or False. Plan Risk Management is focused on identifying project risks.
False. Plan Risk Management is focused on developing the high-level plan for conducting risk management activities.
What are the 4 key inputs to Plan Risk Management?
Project Scope Statement
Cost Management Plan
Schedule Management Plan
Communications Management Plan - gives insight into stakeholder's risk concerns
What is the key tool used by Plan Risk Management?
Planning Meetings and Analysis - i.e. meeting with appropriate stakeholders
What is the key output from Plan Risk Management?
Risk Management Plan
What 6 elements are contained in the Risk Management Plan?
Level of risk that will be tolerable
How risk will be managed
Who will be responsible for risk activities
Time and Cost allocations for risk activities
How risk findings will be communicated
Risk Breakdown Structure (RBS)
True or False. The Risk Breakdown Structure created in Plan Risk Management does NOT break down actual risks, merely categories of risks.
True. Actual risks aren't known until Identify Risks is performed.
What is the focus of Identify Risks?
To identify risks, their causes, and possible responses. These are recorded in the risk register.
When is Identify Risks conducted?
Early in the project and then multiple times thereafter
What are the 7 key inputs to Identify Risks
Risk Management Plan
Cost Management Plan
Schedule Management Plan
Quality Management Plan
Activity Cost Estimates
Activity Duration Estimates
Scope Baseline
What are the 3 key tools used by Identify Risks?
Checklist Analysis
Diagramming Techniques
SWOT Analysis
What does SWOT stand for?
Strengths, Weakness, Opportunities, Threats
Describe a SWOT plot.
Strengths - positive Y axis
Weaknesses - negative Y axis
Opportunities - positive X axis
Weaknesses - negative X axis
Give 3 examples of diagramming techniques used in Identify Risks
Ishiwaka/cause-and-effect/fishbone diagrams
Influence diagrams
Flow charts
What is the output from Identify Risks
Risk Register
What columns are in a typical risk register?
Risk ID
Risk (ie description)
Responses
Root Cause
Categories
What is the focus of Perform Qualitative Risk Analysis?
Examine each risk on the register for probability and impact to assign a prioritation and ranking to the register.
When is Perform Qualitative Risk Analysis performed?
Regularly throughout the project.
What are the 2 key inputs to Perform Qualitative Risk Analysis?
Risk Register
Risk Management Plan
What are the 4 key tools used by Perform Qualitative Risk Analysis?
Risk Probability and Impact Assessment (Probability and Impact Matrix - PIM)
Risk Data Quality Assessment
Risk Categorization
Risk Urgency Assessment
What structure is useful in performing risk categorization?
The Risk Breakdown Structure (RBS)
What is Risk Data Quality Assessment?
It's examining the quality of the data you're using to evaluate risks
How does Probability and Impact Assessment work?
Give each risk a 1 to 10 score for probability of occuring and another score for impact if it did occur.
Multiply these numbers together to get a risk score, which can be used for risk prioritization.
What is the output from Perform Qualitative Risk Analysis?
Risk Register Updates
How is Perform Quantitative Risk Analysis different from Perform Qualitative Risk Analysis?
Qualitative focuses on ranking risks
Quantitative focuses on assign a projected value (either cost or time) to the risks that have ranked by Qualitative.
When is Perform Quantitative Risk Analysis performed relative to Perform Qualitative Risk Analysis?
Quantitative depends on the list prioritization from Qualitative, so Quantitative is performed after or at the same time.
What are the 4 key inputs to Perform Quantitative Risk Analysis?
Risk Register
Risk Management Plan
Cost Management Plan
Schedule Management Plan
Why isn't the scope management plan included as an input to Perform Quantitative Risk Analysis?
Cost and Schedule are easily quantifiable, so those management plans are included. Scope isn't as quantifiable, so it's a more appropriate input to Perform Qualitative Risk Analysis.
What are the two key tools used by Perform Quantitative Risk Analysis
Probability Distributions
Quantitative Risk Analysis and Modeling Techniques
Name 5 Quantitative Risk Analysis and Modeling Techniques
Sensitivity Analysis
Expected Monetary Value Analysis
Decision Tree Analysis
Tornado Diagrams
Modeling and Simulation
What does Sensitivity Analysis do?
It measures the project's sensitivity to risk (i.e. how disasterous the risks would be)
What does Expected Monetary value Analysis do?
It takes uncertain events and assigns a monetary value. Often uses decision trees.
What does Decision Tree Analysis do?
It graphs out decision outcomes, assigns risks and cost impacts to compare full (risk inclusive) costs of each decision.
How does a Tornado Diagram get its name?
Because the bars are ranked from greatest to least, the bars look like an inverted funnel.
What does a Tornado Diagram do?
It measures the impacts of a cost factor changing on the various elements of a project (dev, implementation, testing, training, etc).
What is PMP's favorite example of Modeling and Simulation?
Monte Carlo analysis
What is the output of Perform Quantitative Risk Analysis?
Risk Register Updates
What updates to the Risk Register are performed during Perform Quantitative Risk Analysis?
Cost of each risk
Probabilities of each risk
Probability of meeting the project's cost and time projections
Where is the "plan" for risk mitigation captured by Plan Risk Responses?
In updates to the Risk Register
In what order should the planning risk processes be executed?
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
What are the 2 inputs to Plan Risk Responses?
Risk Register
Risk Management Plan
What are the 3 tools used by Plan Risk Responses?
Strategies for Negative Risks or Threats
Strategies for Positive Risks or Opportunities
Contingent Response Strategies
What are Contingent Response Strategies?
These are risk mitigation decisions that are contingent on certain conditions
Define 4 strategies for negative risks or threats
Avoid - make a decision that avoids the risk
Transfer - make it someone elses risk
Mitigate - do something to lessen the risk
Accept - acknowledge that the best strategy may be just to accept the risk
Define 4 strategies for positive risks or opportunities
Exploit - remove uncertainty to help make a positive risk come to pass
Share - work with another party to help increase odds of positive risk
Enhance - manipulate the underlying causes to increase likelihood of risk occurring
Accept - acknowledge that the best strategy may be just to accept the risk
What are the 2 key outputs from Plan Risk Responses?
Risk Register Updates - document plan for each risk
Risk-Related Contract Decisions - if transferring risk to another party, contract may be required
What is the focus of Monitor and Control Risks?
Looks back on the risk planning and compares it to reality
What are the 3 key inputs to Monitor and Control Risks?
Risk Register
Work Performance Information
Performance Reports
What is difference between Work Performance Information and Performance Reports?
Work Performance Information tells WHAT has been done - i.e. status of deliverables.
Performance Reports tell HOW things have been done and focus on actuals vs plan for cost, time, quality, etc.
What are the 3 key tools used in Monitor and Control Risks?
Risk Reassessment
Risk Audits
Reserve Analysis
True or False. Risk Audits audit specific risks and their planned responses.
False. Risk Audits have a top down focus and are concerned more about overall evaluation of the risk management plan.
What are the two key outputs from Monitor and Control Risks?
