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Risk management must be an integral part of any project. Everything does not always happen as planned. Project risk management contains the processes for identifying, analyzing, and responding to project risk. Each process has a set of input and a set of output. Each process also has a set of tools and techniques that are used to turn the input into output.

Reference Material to Study




What to Study?




Key Definitions


Amount at Stake
The extent of adverse consequences which could occur to the project. (Also referred to as risk impact).

Business Risk
The inherent chances for both profit or loss associated with a particular endeavor.

Contingency Planning
The development of a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.

Contingency Reserve
A separately planned quantity used to allow for future situations which may be planned for only in part ("known unknowns"). Contingency reserves are intended to reduce the impact of missing cost or schedule objectives. Contingency reserves are normally included in the project's cost and schedule baselines.

Deflection
The act of transferring all or part of a risk to another party, usually by some form of contract.

Expected Monetary Value
The product of an event's probability of occurrence and the gain or loss that will result. For example, if there is a 50% probability it will rain, and rain will result in a $100 loss, the expected monetary value of the rain event is $50 (.5 * $100).

Impact Analysis
The mathematical examination of the nature of individual risks on the project, as well as potential arrangements of interdependent risks. It includes the quantification of their respective impact severity, probability, and sensitivity to changes in related project variables, including the project life cycle.

Insurable Risk
A particular type of risk which can be covered by an insurance policy. Also referred to as a pure risk.

Management Reserve
A separately planned quantity used to allow for future situations which are impossible to predict. ("unknown unknowns") Management reserves are intended to reduce the risk of missing cost or schedule objectives. Use of management reserves requires a change to the project's cost baseline.

Mitigation
Taking steps to lessen risk by lowering the probability of a risk event's occurrence or reducing its effect should it occur.

Monte Carlo Analysis
A schedule risk assessment technique that performs a project simulation many times in order to calculate a distribution of likely results.

Opportunities
As related to risk, positive outcomes of risk.

Project Risk Management
Includes the processes concerned with identifying, analyzing, and responding to project risk.

Risk Event
A discrete occurrence that may affect the project for better or worse.

Risk Identification
Determining which risk events are likely to affect the project.

Risk Management Plan
A subsidiary element of the overall project plan which documents the procedures that will be used to manage risk throughout the project. Also covers who is responsible for managing various risk areas; how contingency plans will be implemented, and how reserves will be allocated.

Risk Quantification
Evaluating the probability of risk event occurrence and effect.

Risk Response Control
Responding to changes in risk over the course of the project.

Risk Response Development
Defining enhancement steps for opportunities and mitigation steps for threats.

Threats
As related to risk, negative outcomes of risk.

Total Certainty
All information is known.

Total Uncertainty
No information is available and nothing is known. By definition, total uncertainty cannot be envisaged.

Uncertainty
The possibility that events may occur which will impact the project either favorably or unfavorably. Uncertainty gives rise to both opportunity and risk.

Workaround
A response to a negative risk event. Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event.



Risk Management Processes


Risk Management Planning



Risk Identification



Qualitative Risk Analysis



Quantitative Risk Analysis



Risk Response Planning



Risk Monitoring and Control



Risk Management Concepts


Expected Monetary Value



Decision Trees



Scope of Project Risk Management: (reference I-2) in Risk Management Book from PMI



Categories of Risk Response



Sample Questions

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There are 95 questions related to project risk management. Simply click the 'All Questions' link in order to go to them.

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[1] Risk Management Processes
[2] Terminology
[3] Risk Management Processes
[4] Types of Risk
[5] Contingency Planning
[6] Types of Risk
[7] Risk Management
[8] Risk Management
[9] Risk Management Processes
[10] Risk Management
[11] Contingency Planning
[12] Types of Risk
[13] Tools and Techniques
[14] Tools and Techniques
[15] Risk Management
[16] Risk Evaluation
[17] Risk Evaluation
[18] Documentation
[19] Risk Criteria
[20] Risk Management
[21] Risk Management Processes
[22] Risk Management
[23] Risk Management Processes
[24] Tools and Techniques
[25] Tools and Techniques
[26] Tools and Techniques
[27] Tools and Techniques
[28] Project Life Cycle
[29] Types of Risk
[30] Types of Risk
[31] Contracting
[32] Risk Management
[33] Risk Management
[34] Risk Management
[35] Risk Management
[36] Risk Management Processes
[37] Risk Management Processes
[38] Terminology
[39] Tools and Techniques
[40] Tools and Techniques
[41] Insurance
[42] Project Selection
[43] Risk Management Processes
[44] Contingency Planning
[45] Project Life Cycle
[46] Contingency Planning
[47] Tools and Techniques
[48] Tools and Techniques
[49] Tools and Techniques
[50] Tools and Techniques
[51] Types and Techniques
[52] Types of Risk
[53] Risk Management Processes
[54] Tools and Techniques
[55] Tools and Techniques
[56] Terminology
[57] Terminology
[58] Terminology
[59] Terminology
[60] Risk Management
[61] Contingency Planning
[62] Contracting
[63] Contracting
[64] Contracting
[65] Risk Assessment
[66] Risk Management Processes
[67] Evaluation
[68] Risk Management Processes
[69] Terminology
[70] Terminology
[71] Risk Management
[72] Risk Management
[73] Impact Analysis
[74] Tools and Techniques
[75] Risk Management Processes
[76]
[77] Risk Assessment
[78] Risk Management Processes
[79] Tools and Techniques
[80] Tools and Techniques
[81] Documentation
[82] Tools and Techniques
[83] Contracting
[84] Contracting
[85] Warranties
[86] Contracting
[87] Contracting
[88] Insurance
[89] Contracting
[90] Contracting
[91] Risk Management
[92] Risk Management Processes
[93] Contracting
[94] Risk Management Processes
[95] Types of Risk

Answers

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