1. What is risk management
The process of identifying, evaluating, and planning responses to events, both positive and negative, that might occur during a project.
2. What is the purpose of a spike
In an agile project, spikes take place in the development process to explore uncertainty. There are two types of spikes: architectural spikes and Rish-based spikes.
3. How can fast failure benefit a project
Failing quickly and early can save the project time and financial resources.
4. Name the factors to consider when accessing risk
- The Probability that a risk event will occur (how likely)
- The range of possible outcomes (impact or amount at stake)
- Expected timing for it to occur in the project life cycle (when)
- The anticipated frequency of risk events from that source (how often)
5. Define Risk Appetite and Risk Threshold
Risk Appetite – A general high-level description of the acceptable level of risk to an individual or organization.
Risk Threshold – The specific point at which risk becomes unacceptable.
6. What is the key output of the plan risk management process
Risk Management Plan
7. Name the risk categories
External, Internal, Technical, Commercial and Unforeseeable
8. What is a risk breakdown structure
An organizational or hierarchical chart that can help identify and document risk categories.
9. What are some examples of risk identification techniques
Brainstorming, Checklist Analysis, Interviewing, Root Cause Analysis, Assumption Analysis, Constraint Analysis, SWOT analysis, Documentation Reviews, Prompt lists, and Facilitation.
10. What is a project premortem
A facilitated team exercise that aims to identify the possible failure points on a project before they happen.
11. What is the purpose of a risk report
The purpose of risk report is to keep stakeholders apprised of risk management efforts and outcomes.
12. What can a PM use in order to determine quantitative probability and impact
- Expert judgment from trained risk specialists and team members
- Data-gathering techniques such as interviewing.
- Data analysis techniques such as Montecarlo Analysis
- Interpersonal and Team Skills
- Representations of uncertainty
- Cost and Schedule Estimating
- Use of historical records from previous projects
13. What is the purpose of Monte Carlo Analysis
Monte Carlo Analysis is used to simulate the cost or schedule results of the project.
14. What is Sensitivity Analysis
A technique to analyze and compare the potential impacts of identified risks.
15. What is the formula for expected monetary value
Probability times impact EMV= P X I
16. What is the decision tree
A decision tree is a type of diagram that clearly defines potential outcomes for a collection of related choices. In project management, a decision tree analysis exercise will allow project leaders to easily compare different courses of action against each other and evaluate the risks, probabilities of success, and potential benefits associated with each. It’s important to note that a proper decision tree has four main elements: decision nodes, chance nodes, end nodes, and branches.
17. What is overall Project risks
Risk exposure to the project
18. What are the possible risk response strategies for threats
Avoid: Eliminate the threat by eliminating its cause
Mitigate: Reduce the probability or impact of the threat
Transfer: Make another party responsible for the risk (outsourcing, insurance, warranties, bonds guarantees)
Escalate: Move the threat to the program or portfolio level
Accept:
Passive acceptance – do nothing if it happens it happens.
Active acceptance – develop contingency plans in advance.
19. What are the possible risk response strategies for opportunities
Exploit: Make sure the opportunity occurs
Enhance: Increase the probability or positive impact of the risk event
Share: Allocate full or partial ownership of the opportunity to a third party
Escalate: Move the opportunity to the program or portfolio level
Accept: Do nothing if it happens, it happens
20. What are residual risks
Residual Risks are the risks that remain after risk response planning. If the risk occurs, contingency plans will be in place to manage the risk. If the contingency plans are not effective, then fallback plans need to be implemented.
21. What are secondary risks
New Risks created by the implementation of risk response strategies.
22. Who is the risk owner
Each risk must be assigned to someone who will help lead the development of the risk response and who will be assigned to carry out the risk response or “own” the risk.
23. When an agile team seeks to balance delivering the highest-value features and mitigating the biggest threats that remain on the project, what are they doing.
Creating a risk-adjusted backlog
24. What are risk triggers
Early warning signs that a risk event has occurred or is about to occur. They let risk owners know when to take action.
25. What are workarounds
Unplanned responses developed to deal with the occurrence of unanticipated events or problems on a project (or to deal with risks that have been accepted because if unlikelihood of occurrence and/or minimal impact)
26. What type of reserve can be used to handle the impact of a risk.
A contingency reserve. Under certain circumstances, usually determined by the performing organization management reserves may be used for situations that are within the scope of the project but were not previously identified.
27. What is technical performance analysis.
Uses project data to compare planned versus completion of technical requirements to determine if there is any variance from what was planned.
28. What is a risk review, and how often do they take place
A risk review is held regularly.
A discussion of the effectiveness of planned risk responses that have been implemented on the project. It may result in the
- identification of new risks,
- secondary risks created by risk response plans.
- risks that are no longer applicable
- risks reviews may also result in risk reassessments.
- identifying new risks
- closing risks
29. What are risk audits
Assessments of the overall process of risk management on the project
30. What agile tools allow for ongoing monitoring and controlling for risk
Retrospectives and risk burndown charts
31. What are the key outputs of the identify risks process
- Risk Register
- Risk Report
32. What key outputs of the Perform Qualitative Risk Analysis process are added to the risk register
- Risk ranking for the project compared to other projects.
- List of prioritized risks and their probability and impact ratings
- Results of other risk parameter assessments
- Risk grouped by categories.
- List of risks for additional analysis and response
- List of risks requiring additional analysis in the near term
- Watch list (noncritical risks)
33. What key outputs of the Plan Risk Responses process are added to the risk register
- Residual Riks
- Contingency plans
- Fallback Plans
- Risk Owners
- Secondary Risks
- Risk Triggers
- Contracts
- Reserves for time and cost
34. What are the key outputs of the Monitor Risk Process
Work Performance Information
Risk Register Updates
Change Requests
Project Management Plan Updates
Organizational Process assets updates
35. What key outputs of the Monitor Risks Process are added to the risk register
- Outcomes of risk reassessments and risk audits
- Results of implemented risk responses
- Updates to previous parts of risk management
- Closing of risks that are no longer applicable.
- Details of what happened when risks occurred.
- Lessons Learned