Risk Management and Systems Engineering Flashcards

In risk management, what is the Risk Priority Number (RPN) calculated as?

Answer: Severity × Occurrence × Detection

The RPN in FMEA is the product of Severity (impact of failure), Occurrence (likelihood of failure), and Detection (ability to detect failure before it reaches the customer).

Which risk response strategy involves shifting the financial impact of a risk to a third party?

Answer: Risk transference

Risk transference shifts the financial consequences of a risk to another party, typically through insurance or contract clauses like indemnification.

What is the primary goal of systems engineering in complex engineering projects?

Answer: Ensuring all system components work together to meet overall system requirements

Systems engineering focuses on the holistic integration of all components — hardware, software, people, and processes — to ensure the overall system meets its intended requirements.

What does a probability-impact matrix help project managers do?

Answer: Prioritize risks by plotting their likelihood against their potential impact

A probability-impact matrix visually categorizes identified risks by their probability of occurrence and their impact severity, helping teams prioritize which risks need active management.

In systems engineering, what is a 'requirements baseline'?

Answer: The formally approved set of requirements against which system development is measured

A requirements baseline is the formally approved and controlled version of system requirements used as the foundation for design, development, and verification activities.

Which risk quantification technique uses repeated random sampling to model uncertainty in project outcomes?

Answer: Monte Carlo Simulation

Monte Carlo simulation runs thousands of iterations using random samples from probability distributions of uncertain variables to generate a range of possible project outcomes.