Exam 8: Managing Risk

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.

includes determining which risks may adversely affect the project objective and what the impact of each risk might be if it occurs.

If the risks seem , the contractor may decide to not bid on a proposed project.

Some level of risk planning should be done during of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project.With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price.

Risks ____ should be given higher priority because if the risk occurs, it would have a greater impact on the schedule than if it was associated with activities on a path that has a large positive value of total slack.

Regularly review and evaluate to determine if there are any changes to the likelihood of occurrence or the potential impact of any of the risks.

Waiting for favorable events to occur and then reacting to them can result in panic and costly responses.

Risk identification is determining which risks may adversely affect the development of the project work breakdown structure and what the impact of each risk might be if it occurs.

A risk assessment matrix is a tool for

Sometimes a sponsor identifies major risks for the project in

Addressing risks proactively will increase the chances of accomplishing the project objective.

is the warning flag for when to implement the action plan for the risk.

Establishing risk categories may help to identify and evaluate risks.List some categories to help identify risks.

A common approach to identifying the sources of risks is

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.

Establishing risk categories may help to identify and evaluate risks.Some categories to help identify risks include all the following except:

is a rating of low, medium, or high based upon the expected probability of a risk occurring during the project.

Some level of risk planning should be done during the initiating phase of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project.

The project team can progressively elaborate and identify new risks as more information is known or becomes clear.

If the risks seem too great, the contractor may decide to not bid on a proposed project.