Chapter 11 Vocabulary - Phillips Pmp

Front 1

acceptance

Back 1

A response to a risk event, generally made when the probability of the event and/or its impact is small. It is used when mitigation, transference, and avoidance are not selected.

Front 2

avoidance

Back 2

One response to a risk event. The risk is avoided by removing the risk from the project.

Front 3

brainstorming

Back 3

The most common approach to risk identification; it is performed by a project team to identify risks within the project. A multidisciplinary team, hosted by a project facilitator, can also perform ______________.

Front 4

cause-and-effect diagrams

Back 4

Used for root-cause analysis of what factors are creating the risks within the project. The goal is to identify and treat the root of the problem, not the symptom.

Front 5

contingency reserve

Back 5

A time or dollar amount allotted as a response to risk events that may occur within a project.

Front 6

decision tree analysis

Back 6

A type of analysis that determines which of two decisions is the best, The _______________ assists in calculating the value of a decision and determining which decision costs the least.

Front 7

Delphi Technique

Back 7

A method to query experts anonymously on foreseeable risks within the project, phase, or component of the project. The results of the survey are analyzed and organized, then circulated to the experts. There can be several rounds of anonymous discussion with the _______________. The goal is to gain a consensus on project risks, and the anonymous nature of the process ensures that no one expert's advice overtly influences the opinion of another participant.

Front 8

enhance

Back 8

To _______ a risk is to attempt to modify its probability and/or its impacts to realize the most gains from it.

Front 9

exploit

Back 9

The organization wants to ensure that the identified risk does happen to realize the positive impact associated with the risk event.

Front 10

influence diagram

Back 10

Charts out a decision problem. It identifies all of the elements, variables, decisions, and objectives - and how each factor may influence another.

Front 11

mitigation

Back 11

Reducing the probability or impact of a risk.

Front 12

qualitative risk analysis

Back 12

An examination and prioritization of the risks based on their probability of occurring and the impact on the project if they do occur. _____________________ guides the risk reaction process.

Front 13

quantitative risk analysis

Back 13

A numerical assessment of the probability and impact of the identified risks. _____________________ also creates an overall risk score for the project.

Front 14

residual risks

Back 14

Risks that are left over after mitigation, transference, and avoidance. These are generally accepted risks. Management may elect to add contingency costs and time to account for ________________ within the project.

Front 15

risk

Back 15

An unplanned event that can have a positive or negative influence on the project's success.

Front 16

risk categories

Back 16

These help organize, rank, and isolate the risks within the project.

Front 17

risk management plan

Back 17

A subsidiary project plan for determining how risks will be identified, how quantitative and qualitative analyses will be completed, how risk response planning will happen, how risks will be monitored, and how ongoing risk management activities will occur throughout the project life cycle.

Front 18

risk owners

Back 18

The individuals or groups responsible for a risk response.

Front 19

risk register

Back 19

Documentation of all risk events and their conditions, impact, probability, and overall risk score.

Front 20

scales of probability and impact

Back 20

Used in a risk matrix in both qualitative and quantitative risk analyses to score each risk's probability and impact.

Front 21

secondary risks

Back 21

Risks that stem from risk responses. For example, the response of transference may call for hiring a third-party to manage an identified risk. A ____________________ caused by the solution is the failure of the third party to complete its assignment as scheduled. _________________ must be identified, analyzed, and planned for, just like any other identified risk.

Front 22

sensitivity analysis

Back 22

Examines each project's risk on its own merit to assess the impact on the project. All other risks in the project are set at a baseline value.

Front 23

share

Back 23

Sharing is nice. When sharing, the risk ownership is transferred to the organization that can most capitalize on the risk opportunity.

Front 24

simulation

Back 24

Allows the project teams to play "what-if" games without affecting any areas of production.

Front 25

system or process flowcharts

Back 25

Show the relationship between components and how the overall process works. They are useful for identifying risks between system components.

Front 26

transference

Back 26

A response to risks in which the responsibility and ownership of the risk are transferred to another party (for example, through insurance).

Front 27

triggers

Back 27

Warning signs that a risk has occurred or is about to occur (for example, a vendor failing to complete their portion of the project as scheduled).

Front 28

utility function

Back 28

A person's willingness to accept risk. The higher the utility function, the more likely the person or organization is willing to seek risk.

Front 29

workarounds

Back 29

Unplanned responses to risks that were not identified or expected.