Managing risk
includes taking action to foster the likelihood of occurrence or the impact of such unfavorable events. The risks should be those that are somewhat likely to occur and/or can have a significant positive impact on accomplishing the project objective.
Is a defined set of actions to prevent or reduce the likelihood of occurrence or the impact of a risk or to implement if the risk event occurs?
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 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.
Which mitigation strategy is normally first pursued to minimize the cost impact of a risk event occurring?
Which mitigation strategy is normally first pursued to minimize the cost impact of a risk event occurring?
Reduce likelihood.
What action should be taken once risks have been identified?
Assessment. Once risks have been identified, they must then be assessed as
to their potential severity of impact
(generally a negative impact, such as damage or loss) and to the probability of occurrence.
When should risks be avoided?
Risk is avoided
when the organization refuses to accept it
. The exposure is not permitted to come into existence. This is accomplished by simply not engaging in the action that gives rise to risk. If you do not want to risk losing your savings in a hazardous venture, then pick one where there is less risk.
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.
How can the effects of risks be mitigated give some examples?
- Assume and accept risk.
- Avoidance of risk.
- Controlling risk.
- Transference of risk.
- Watch and monitor risk.
What kind of plan goes into place should a risk event actually occur?
A risk response is part of the
actual implementation plan
and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.
How do you manage project risks?
- Create a project risk register.
- Identify project risks.
- Identify opportunities.
- Determine likelihood and impact.
- Determine the response.
- Estimation.
- Assign owners.
- Regularly review project risks.
What are the four risk strategies?
The Best Risk Mitigation Strategy
More than one mitigation strategy may be employed to attain optimal results. The four types of risk mitigating strategies include
risk avoidance, acceptance, transference and limitation
.
What are key components of a contingency plan?
The Inter-Agency Contingency Planning Guidelines for Humanitarian Assistance endorsed by the IASC outlines four key steps in the contingency planning process:
preparation, analysis, response planning, and implementing preparedness
.
What is the difference between likelihood and consequence?
Risk
= Consequence x Likelihood; where: (i) Likelihood is the Probability of occurrence of an impact that affects the environment; and, (ii) Consequence is the Environmental impact if an event occurs. … Essentially, the higher the probability of a “worse” effect occurring, the greater the level of risk.
What are the 5 methods used to manage treat risks?
The basic methods for risk management—
avoidance, retention, sharing, transferring, and loss prevention and reduction
—can apply to all facets of an individual’s life and can pay off in the long run.
How does risk affect decision making?
There is an element of risk inherent in all decisions we make, as there is a degree of uncertainty associated with all decision outcomes (Pablo et al. 1996). … Hence, risk
influences perceptions of the decision problem, assessment of available options
, and the eventual decisions.
What are the 5 risk management process?
- Step 1: Identify the Risk. The first step is to identify the risks that the business is exposed to in its operating environment. …
- Step 2: Analyze the Risk. …
- Step 3: Evaluate or Rank the Risk. …
- Step 4: Treat the Risk. …
- Step 5: Monitor and Review the Risk.
