Project Risk Management
Risk transference includes shifting the consequence of a risk and responsibility for its management to a third party
Fallback plans are developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective
Utility rises at a decreasing rate for a risk-adverse person. In other words, when more payoff or money is at stake, the person gains less satisfaction from the risk, or has lower tolerance for the risk.
Risk mitigation reducing the impact of a risk event by reducing the probability of its occurrence
A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks.
Risk factors describe numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur
A probability/impact matrix lists the relative probability of a risk occurring on one axis on a chart and the relative impact of the risk occurring on the other.
Quantitative risk analysis numerically estimating the effects of risks on project objectives
A decision tree is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
Brainstorming is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgement
Risk sharing allocating ownership of the risk to another party
Risk response planning taking steps to enhance opportunities and reduce threats to meeting project objectives
Delphi technique is used to derive a consensus among a panel of experts who make predictions about future developments
Flow charts is a diagram that shows how different parts of a system interrelate? For example, many programmers create these to show programming logic
A risk register is a document that contains results of various risk management processes, often displayed in a table or spreadsheet format
Qualitative risk analysis involves prioritizing risks based on their probability and impact of occurrence
Risk exploitation doing whatever you can to make sure the positive risk happens
Top Ten Risk Item Tracking establishing a periodic review of the project’s most significant risk items with management and, optionally, with the customer
Monte Carlo analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results
A risk management plan summarizes how risk management will be performed on a particular project
