Project Risk Management.txt

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lazarwolfe
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84080
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Project Risk Management.txt
Updated:
2011-05-05 21:37:35
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PMP Exam Risk Management
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PMP Exam Risk Management
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  1. Which risk management processes are planning processes?
    • Plan Risk Management
    • Identify Risks
    • Perform Qualitative Risk Analysis
    • Perform Quantitative Risk Analysis
    • Plan Risk Responses
  2. Which risk management processes are executing processes?
    NONE
  3. Which risk management processes are monitoring and controlling processes?
    Monitor and Control Risks
  4. What is the PRIMARY output from Plan Risk Management?
    Risk Management Plan
  5. What is the PRIMARY output from Identify Risks?
    Risk Register
  6. What is the PRIMARY output from Perform Qualitative Risk Analysis?
    Risk Register Updates
  7. What is the PRIMARY output from Perform Quantitative Risk Analysis?
    Risk Register Updates
  8. What are the PRIMARY two outputs from Plan Risk Responses?
    • Risk Register Updates
    • Risk-related contract decisions
  9. What are the PRIMARY two outputs from Monitor and Control Risks?
    • Risk register updates
    • Change requests
  10. What are the two primary characteristics of risk for PMP purposes?
    • It is related to an uncertain event
    • It may affect the project for good or for bad
  11. True or False. Plan Risk Management is focused on identifying project risks.
    False. Plan Risk Management is focused on developing the high-level plan for conducting risk management activities.
  12. What are the 4 key inputs to Plan Risk Management?
    • Project Scope Statement
    • Cost Management Plan
    • Schedule Management Plan
    • Communications Management Plan - gives insight into stakeholder's risk concerns
  13. What is the key tool used by Plan Risk Management?
    Planning Meetings and Analysis - i.e. meeting with appropriate stakeholders
  14. What is the key output from Plan Risk Management?
    Risk Management Plan
  15. What 6 elements are contained in the Risk Management Plan?
    • Level of risk that will be tolerable
    • How risk will be managed
    • Who will be responsible for risk activities
    • Time and Cost allocations for risk activities
    • How risk findings will be communicated
    • Risk Breakdown Structure (RBS)
  16. True or False. The Risk Breakdown Structure created in Plan Risk Management does NOT break down actual risks, merely categories of risks.
    True. Actual risks aren't known until Identify Risks is performed.
  17. What is the focus of Identify Risks?
    To identify risks, their causes, and possible responses. These are recorded in the risk register.
  18. When is Identify Risks conducted?
    Early in the project and then multiple times thereafter
  19. What are the 7 key inputs to Identify Risks
    • Risk Management Plan
    • Cost Management Plan
    • Schedule Management Plan
    • Quality Management Plan
    • Activity Cost Estimates
    • Activity Duration Estimates
    • Scope Baseline
  20. What are the 3 key tools used by Identify Risks?
    • Checklist Analysis
    • Diagramming Techniques
    • SWOT Analysis
  21. What does SWOT stand for?
    Strengths, Weakness, Opportunities, Threats
  22. Describe a SWOT plot.
    • Strengths - positive Y axis
    • Weaknesses - negative Y axis
    • Opportunities - positive X axis
    • Weaknesses - negative X axis
  23. Give 3 examples of diagramming techniques used in Identify Risks
    • Ishiwaka/cause-and-effect/fishbone diagrams
    • Influence diagrams
    • Flow charts
  24. What is the output from Identify Risks
    Risk Register
  25. What columns are in a typical risk register?
    • Risk ID
    • Risk (ie description)
    • Responses
    • Root Cause
    • Categories
  26. What is the focus of Perform Qualitative Risk Analysis?
    Examine each risk on the register for probability and impact to assign a prioritation and ranking to the register.
  27. When is Perform Qualitative Risk Analysis performed?
    Regularly throughout the project.
  28. What are the 2 key inputs to Perform Qualitative Risk Analysis?
    • Risk Register
    • Risk Management Plan
  29. What are the 4 key tools used by Perform Qualitative Risk Analysis?
    • Risk Probability and Impact Assessment (Probability and Impact Matrix - PIM)
    • Risk Data Quality Assessment
    • Risk Categorization
    • Risk Urgency Assessment
  30. What structure is useful in performing risk categorization?
    The Risk Breakdown Structure (RBS)
  31. What is Risk Data Quality Assessment?
    It's examining the quality of the data you're using to evaluate risks
  32. How does Probability and Impact Assessment work?
    • Give each risk a 1 to 10 score for probability of occuring and another score for impact if it did occur.
    • Multiply these numbers together to get a risk score, which can be used for risk prioritization.
  33. What is the output from Perform Qualitative Risk Analysis?
    Risk Register Updates
  34. How is Perform Quantitative Risk Analysis different from Perform Qualitative Risk Analysis?
    • Qualitative focuses on ranking risks
    • Quantitative focuses on assign a projected value (either cost or time) to the risks that have ranked by Qualitative.
  35. When is Perform Quantitative Risk Analysis performed relative to Perform Qualitative Risk Analysis?
    Quantitative depends on the list prioritization from Qualitative, so Quantitative is performed after or at the same time.
  36. What are the 4 key inputs to Perform Quantitative Risk Analysis?
    • Risk Register
    • Risk Management Plan
    • Cost Management Plan
    • Schedule Management Plan
  37. Why isn't the scope management plan included as an input to Perform Quantitative Risk Analysis?
    Cost and Schedule are easily quantifiable, so those management plans are included. Scope isn't as quantifiable, so it's a more appropriate input to Perform Qualitative Risk Analysis.
  38. What are the two key tools used by Perform Quantitative Risk Analysis
    • Probability Distributions
    • Quantitative Risk Analysis and Modeling Techniques
  39. Name 5 Quantitative Risk Analysis and Modeling Techniques
    • Sensitivity Analysis
    • Expected Monetary Value Analysis
    • Decision Tree Analysis
    • Tornado Diagrams
    • Modeling and Simulation
  40. What does Sensitivity Analysis do?
    It measures the project's sensitivity to risk (i.e. how disasterous the risks would be)
  41. What does Expected Monetary value Analysis do?
    It takes uncertain events and assigns a monetary value. Often uses decision trees.
  42. What does Decision Tree Analysis do?
    It graphs out decision outcomes, assigns risks and cost impacts to compare full (risk inclusive) costs of each decision.
  43. How does a Tornado Diagram get its name?
    Because the bars are ranked from greatest to least, the bars look like an inverted funnel.
  44. What does a Tornado Diagram do?
    It measures the impacts of a cost factor changing on the various elements of a project (dev, implementation, testing, training, etc).
  45. What is PMP's favorite example of Modeling and Simulation?
    Monte Carlo analysis
  46. What is the output of Perform Quantitative Risk Analysis?
    Risk Register Updates
  47. What updates to the Risk Register are performed during Perform Quantitative Risk Analysis?
    • Cost of each risk
    • Probabilities of each risk
    • Probability of meeting the project's cost and time projections
  48. Where is the "plan" for risk mitigation captured by Plan Risk Responses?
    In updates to the Risk Register
  49. In what order should the planning risk processes be executed?
    • Plan Risk Management
    • Identify Risks
    • Perform Qualitative Risk Analysis
    • Perform Quantitative Risk Analysis
    • Plan Risk Responses
  50. What are the 2 inputs to Plan Risk Responses?
    • Risk Register
    • Risk Management Plan
  51. What are the 3 tools used by Plan Risk Responses?
    • Strategies for Negative Risks or Threats
    • Strategies for Positive Risks or Opportunities
    • Contingent Response Strategies
  52. What are Contingent Response Strategies?
    These are risk mitigation decisions that are contingent on certain conditions
  53. Define 4 strategies for negative risks or threats
    • Avoid - make a decision that avoids the risk
    • Transfer - make it someone elses risk
    • Mitigate - do something to lessen the risk
    • Accept - acknowledge that the best strategy may be just to accept the risk
  54. Define 4 strategies for positive risks or opportunities
    • Exploit - remove uncertainty to help make a positive risk come to pass
    • Share - work with another party to help increase odds of positive risk
    • Enhance - manipulate the underlying causes to increase likelihood of risk occurring
    • Accept - acknowledge that the best strategy may be just to accept the risk
  55. What are the 2 key outputs from Plan Risk Responses?
    • Risk Register Updates - document plan for each risk
    • Risk-Related Contract Decisions - if transferring risk to another party, contract may be required
  56. What is the focus of Monitor and Control Risks?
    Looks back on the risk planning and compares it to reality
  57. What are the 3 key inputs to Monitor and Control Risks?
    • Risk Register
    • Work Performance Information
    • Performance Reports
  58. What is difference between Work Performance Information and Performance Reports?
    • Work Performance Information tells WHAT has been done - i.e. status of deliverables.
    • Performance Reports tell HOW things have been done and focus on actuals vs plan for cost, time, quality, etc.
  59. What are the 3 key tools used in Monitor and Control Risks?
    • Risk Reassessment
    • Risk Audits
    • Reserve Analysis
  60. True or False. Risk Audits audit specific risks and their planned responses.
    False. Risk Audits have a top down focus and are concerned more about overall evaluation of the risk management plan.
  61. What are the two key outputs from Monitor and Control Risks?
    • Risk register updates
    • Change requests

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