Chuck Wright Pmp Study Group - Chapter 11

Front 1

What are the main responsibilities of risk owners?

Back 1

1) Tracking our assigned risks

2) Implementing the documented risk response plan if / when the risk occurs

3) Monitoring the risk for changes in probability or impact

Front 2

Why are documentation reviews considered tools and techniques for Identify Risks?

Back 2

Project Documentation, including plans, assumptions, previous project files, and plans from past projects can be good indicators of project risks.

Front 3

How does the PMI define risk?

Back 3

An uncertain (future) event or condition that, if it occurs, has a positive or negative effect on a project's objective (such as scope, time, quality or cost).

Front 4

What are the primary inputs to Plan Risk Management?

Back 4

1) Project scope statement

2) Other management plan (cost, schedule, and communication)

3) Enterprise environmental factors

4) Operational process assets

Front 5

Risk assessment includes which 3 risk management processes?

Back 5

1) Identify Risks

2) Perform Qualitative Risk Analysis

3) Perform Quantitative Risk Analysis

Front 6

What is the formula for calculating the risk score and how is this score used?

Back 6

P X I = Risk Score

When performing "qualitative risk analysis" calculate a risk score for each risk identified on the risk register in order to determine which risks have the highest score and should be further considered by quantitative risk analysis and / or risk response planning.

Front 7

Risk probability and impact assessment, probability and impact matrix, risk data quality assessment, risk categorization, risk urgency assessment, and expert judgment are tools and techniques for which project managment process?

Back 7

Perform Qualitative Risk Analysis

Front 8

Why is the stakeholder register an input to Identify Risks?

Back 8

Key stakeholders, expecially customers, identified in the stakeholder register should participate in identifying risks.

Front 9

What is the purpose of the planning meetings and analysis in the Plan Risk Management process?

Back 9

Conducting high-level plans for risk managment activities, which might:

1) Determine the definitions of risk, probability, and impact for projects.

2) Assign risk responsibilities.

3) Establish risk reserve approaches.

4) Tailor templates for risk documents.

5) Develop cost elements and schedule activities for the project budget and schedule.

Front 10

What are the strategies for negative risks (threats)?

Back 10

1) Avoid

2) Transfer or deflect

3) Mitigate

4) Accept

Front 11

What is a workaround and when might it be used?

Back 11

An unplanned response to risk, created as needed to deal with an unanticipated risk or when no contingency plan exists.

Front 12

What is the primary goal of risk management?

Back 12

Increase the probability and impact of positive risks (opportunities) and decrease the probability and impact of negative risks (threats).

Front 13

Updates to the risk register are key outputs of which 4 Project Risk Management Processes?

Back 13

1) Perform Qualitative Risk Analysis

2) Perform Quantitative Risk Analysis

3) Plan Risk Responses

4) Montior and Control Risks

Front 14

What is a trigger?

Back 14

A symptom or warning sign that a risk is about to occur or has already occurred.

Front 15

What are the 2 kinds of risk?

Back 15

1) Negative risks (threats): Can result in increased cost, lost time, or other detrimental results to the project.

2) Positive risks (opportunities): Can save time or money or produce other project benefits.

Front 16

What is the primary difference between Plan Risk Management and Plan Risk Responses?

Back 16

1) Plan Risk Managment: The objective is to decide upon the overall approach for managing risk for the project as a whole.

2) Plan Risk Responses: The objective is to develop a risk response plan for each individual risk that was identified as a high priority risk, base upon qualitative and quantitative risk.

Front 17

What is the difference between secondary risks and residual risks?

Back 17

1) Secondary risks: Risks that result from implementing a risk response. (i.e. Putting up a tent for a picnic creates a secondary risk of tripping over the tent poles).

2) Residual risks: Minor risks that remain after a planned response has been implemented. (planned response = putting up a tent at picnic so people won't get wet. Residual risk is they still may get wet traveling from parking lot.)

Front 18

What is impact?

Back 18

The consequences to the project if the event occurs.

Front 19

What is the primary output of identify Risks?

Back 19

The risk register

Front 20

What are the 6 Project Risk Managment processes?

Back 20

1) Plan Risk Management

2) Identify Risks

3) Perform Qualitative Risk Analysis

4) Perform Quantitative Risk Analysis

5) Plan Risk Responses

6) Monitor and Control Risk

Front 21

What are the strategies for the positive risks (opportunities)?

Back 21

1) Exploit

2) Share

3) Enhance

4) Accept

Front 22

Risk related contract decisions are outputs of which Project Risk Management process?

Back 22

Plan Risk Responses.

Front 23

What is the formula for calculating the EMV and how is this value used?

Back 23

P x Value of I = EMV

When performing quantitative risk analysis, calculate the EMV for each high priority risk in order to estimate the potential loss (or gain) of time or money if the event occurs.

Front 24

What are the 11 inputs to Identify Risks?

Back 24

1) Risk Management Plan

2) Activity Cost Milestones

3) Activity duration estimates

4) Scope baseline

5) Stakeholder register

6) Cost management plan

7) Schedule management plan

8) Quality management plan

9) Project documents

10) Enterprise environmental factors

11) Operational process assets

Front 25

Which process uses information-gathering techniques as tools and techniques?

What are some examples of information gathering techniques?

Back 25

1) Identify Risks Process.

2) Examples of Information-gathering techniques:

a) Brainstorming

b) Delphi techniques

c) Interviewing (or expert interviewing)

d) Root Cause Analysis

Front 26

What is probability?

Back 26

The likelihood that the event or condition may occur.

Front 27

What is the difference between contingency reserves and managment reserves?

Back 27

1) Contingency reserves: Buffers of time or money that the project manager adds to the schedule or budget for identified risks (know unknowns)

2) Management reserves: Buffers of time or money that managment allows, and controls, for unidentified risks (unknown unknowns). Management reserve is usually the difference between the approved project budget and the funding limitation.

Front 28

Which process is concerned with prioritizing risks for further analysis or actions by assessing and combining their probability of occurence and impact?

Back 28

The Perform Qualitative Risk Analysis Process

Front 29

Explain the differences between "Plan Risk Management" and "Plan Risk Responses".

Back 29

1) Plan Risk Management - deals with risk in general.

2) Plan Risk Responses - deals with individual risks.

Front 30

Which process concerns the process of numerically analyzing the effect of identifiable risks on overall project objectives?

Back 30

Perform Quantitative Risk Analysis Process

Front 31

Which process concerns itself with defining how to conduct risk management activities for a project?

Back 31

Plan risk management process

Front 32

Which process concerns itself with determining which risks may affect the project and documenting their charecteristics?

Back 32

Identify Risks Process.

Front 33

Which process concerns itself with:

- Implementing risk response plans

- Tracking identified risks

- Monitoring residual risks

- Identifying new risks

- Evaluating risk process effectiveness throughout the project

Back 33

Monitor and Control Risks

Front 34

What is used for risks assessed as not important based on "Qualitative Risk Analysis"?

Back 34

A "watch list"

Front 35

How is a "risk score" calculated?

Back 35

Probability x impact.

Put focus on opportunities with the highest score.

The higher the risk score, the higher the priority.

Deviations from the baseline plan may indicate potential impact of threats.

Front 36

Describe "Monte Carlo Analysis"

Back 36

It is a schedule analysis technique. It takes into account that paths often converge into one activity. The Monte Carlo Analysis often uses software. The process needs the project network diagram & duration of each task. Cost figures may be needed too. Monte Carlo evaluates the overall risk of projects. It is not for individual tasks.

Front 37

Describe Business Risk.

Back 37

It is a normal risk that can offer a gain or loss.

Front 38

Describe Pure Risk.

Back 38

This type of risk only offers loss. We can buy insurance for this type of risk (i.e. property damage).

Front 39

Describe Mitigation.

Back 39

Mitigation is the lowering of probability or impact of an adverse risk event.

Front 40

Describe a Secondary Risk.

Back 40

A secondary risk is a risk that emerges as a direct result of implementing a risk response.

Front 41

Describe a Residual Risk.

Back 41

A residual risk is a risk that remains after risk responses have been implemented.

Front 42

What are the required contract elements?

Back 42

1) Capacity - Legal authority to enter into a contract.

2) Consideration - Something given in exchange for something else.

3) Offer - Invitation to make a deal.

4) Legal - The deal must be legal & it can't violate the law.

5) Acceptance - There must be an agreement to make the deal.

Front 43

Define "Free Float"

Back 43

Successor ES - Predecessor EF

Front 44

Describe SS

Back 44

1) "Start to Start" relationship.

2) The first activity MUST start before the second activity can start.

3) This is a PDM (Precedence Diagramming Method) relationship.

Front 45

Which process concerns itself with managing the procurement relationship, monitoring contract performance, and making changes and corrections as needed?

Back 45

The Administer Procurement Process.

Front 46

Describe "Design of Experiments"

Back 46

1) DOE plays a role in optimization of Products & Processes.

2) DOE's allow you to systematically change all the important factors for a product or process to provide the optimal conditions.

Front 47

Describe the difference between "Contingency Reserves" and "Management Reserves".

Back 47

1) Contingency Reserves are for "Known Unknowns."

2) Management Reserves are for "Unknown Unknowns."

The "management reserve" is not part of the cost baseline but is included in the total budget for the project.

Front 48

Describe Life Cycle Costing.

Back 48

This process is associated with the life cycle of the product and includes the cost of operation and maintenance.

Front 49

Which process is concerned with numerically analyzing the effect of identifiable risk on overall project objectives?

Back 49

The "Perform Quantitative Risk Analysis" process.

Front 50

Which process is concerned with defining how to conduct risk management activities for a project?

Back 50

The "Plan Risk Management" process.

Front 51

Which process is concerned with determining which risks may affect the project and documenting their characteristics?

Back 51

The "Identify Risks Process"

Front 52

Which process concerns itself with Implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks and evaluating risk process effectiveness throughout the project?

Back 52

The "Monitor and Control Risks" process.