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12 Cards in this Set
- Front
- Back
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What is risk?
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It is an uncertain event with a chance of a negative or positive consequence.
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What is Risk Management?
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It is the systematic process of identifying, analyzing and responding to project risks, includes maximizing the positive events and minimizing the negative. Sources of risks are too many and better be categorized
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What are some sources of risks?
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1. Weather 2. Unexpected site conditions 3. Personnel problems 4. Design errors 5. Delays 6. Financial 7. Strikes 8. Faulty materials 9. Faulty workmanship 10. Operational problems 11. Disaster/war 12. Ripple effects |
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What Risk Management is important?
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Offers significant improvement to the final outcomes of the project by defining its strengths and weakness Provides better chances of success Improves the project quality and schedule and reduces its costs Allows project team members to make better decisions |
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What are some Risk components/factors?
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1. Risk event - what might happen to the determent of the project 2. Risk probability - likelihood of occurrence of the event 3. Risk impact - extent of loss or the amount at stake |
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What is Risk Assessment, Allocation and Assignment of Liability?
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1. Understanding the project components 2. Identifying risks 3. Prioritizing risks 4. Quantifying risks 5. Planning risk responses 6. Monitoring and controlling risks |
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What is understand project components?
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Defining project scope clearly-define its products and deliverables and identify its requirements Develop a WBS-decompose the project deliverables into smaller and more manageable components |
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How to identify risk?
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Risk Management meeting Historical knowledge Expert judgement Brain storming Risk Breakdown Structure |
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How to Prioritize Risks?
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Ranking of the risks to assess for urgency Pareto: 20% of the causes result in 80% of the grief Determine the warming signs Determine stakeholders tolerances and risk owners |
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How to Quantify Risks?
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Conducting numerical analysis to determine the probability and impact of significant risks on the project objectives Decision tree analysis a technique that uses future events to the decision today making use of the Expected Monetary Value Principle EMV = Risk event Probability x Risk event value Modeling and Simulation probabilistic models to compute uncertainties and reflect their potential impacts on the project objectives Three point estimation, Monte Carlo Simulation Technique |
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What are some Plan Risk Responses?
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Accept the risk - do nothing Eliminate - can we? secondary risks Avoid - conducting the job in a different way Mitigate - minimize impact/probability Transfer - subcontracting, insurance |
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How do you monitor and control risks?
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Keeping track of the identified risks and those on the watch list Reanalyzing existing risks Watching for warning signs Reviewing the execution of risk responses while evaluating their effectiveness |
