a.
Risk identification
is determining which risks may adversely affect the development of the project work breakdown structure and what the impact of each risk might be if it occurs. Addressing risks proactively will increase the chances of accomplishing the project objective.
Which includes potential risks their potential impact likelihood of occurrence and response plan?
Terms in this set (19)
is a tool for assessing and managing risks also referred to as
risk register
which includes potential risks, their potential impact, likelihood of occurrence, and response plan.
What involves determining the likelihood and project impact of a risk?
Risk management
involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.
Which factor that may influence an organization’s risk attitude involves the degree of uncertainty an entity is willing to take on in anticipation of a reward?
According to the PMBOK Guide, 6th edition, “
Risk appetite
is the degree of uncertainty an organization or individual is willing to accept in anticipation of a reward.”
What is impact and likelihood of risk?
The impact is
an estimate of the harm that could be caused by an event
. For example, a cyberbreach could have a catastrophic impact. Likelihood. Likelihood is how probable it is that an event will occur.
What are project risks examples?
- Scope creep. Scope creep happens when either. …
- Budget creep. Closely related to scope creep is budget creep. …
- Communication issues. …
- Lack of clarity. …
- Poor scheduling.
Which of the following is an example of retaining risk?
An insurance deductible
is a common example of risk retention to save money, since a deductible is a limited risk that can save money on insurance premiums for larger risks. Businesses actively retain many risks — what is commonly called self-insurance — because of the cost or unavailability of commercial insurance.
How do you identify risks in a project?
- Checklists.
- Lessons Learned.
- Subject Matter Experts.
- Documentation Review.
- SWOT Analysis.
- Brainstorming.
- Delphi Technique.
- Assumptions Analysis.
What is the process used to identify a risk?
There are five core steps within the risk identification and management process. These steps include risk identification,
risk analysis
, risk evaluation, risk treatment, and risk monitoring.
How do you identify risks?
- Break down the big picture. …
- Be pessimistic. …
- Consult an expert. …
- Conduct internal research. …
- Conduct external research. …
- Seek employee feedback regularly. …
- Analyze customer complaints. …
- Use models or software.
What is risk tolerance example?
Risk tolerance refers to
the amount of loss an investor is prepared to handle while making an investment decision
. … For example, if an individual’s risk tolerance is low, investments will be made conservatively and will include more low-risk investments and less high-risk investments.
Is the amount of uncertainty a person or entity is willing to take on in anticipation of a reward?
1)
Risk Appetite
– Degree of uncertainty an entity is willing to take in anticipation of a reward.
How is risk threshold set?
Determining the risk threshold requires
interviews and meetings with the stakeholders
. This is necessary to find out about what their risk appetites are. Based on their risk appetite, the project manager should analyze the risk tolerance first before calculating the threshold.
What are the four main potential impacts of risk?
- Health & Safety. Safety or health risks related to a location, lifestyle, occupation or activity. …
- Quality of Life. Nations, cities, communities, organizations and individuals may base risk assessments on quality of life factors. …
- Sustainability. …
- Financial. …
- Time. …
- Reputation.
What are the 3 levels of risk?
We have decided to use three distinct levels for risk:
Low, Medium, and High
.
What is the impact of risk on organizations?
Risk is
the main cause of uncertainty in any organisation
. Thus, companies increasingly focus more on identifying risks and managing them before they even affect the business. The ability to manage risk will help companies act more confidently on future business decisions.
