Risk Analysis Flashcards

A CAM's control account shows a favorable cost variance, but the risk register lists an unmitigated technical risk in a future work package. How should the CAM report status?

Answer: Report the favorable variance and explicitly note the open risk to future performance in the variance analysis

Accurate status requires reporting current performance alongside known risks that threaten future performance.

In a probability-and-impact matrix, a risk rated low probability but very high impact should typically be handled how?

Answer: Developed with a contingency or response plan despite its low likelihood

High-impact risks warrant response planning even when their probability is low.

Which document formally records a risk's description, owner, probability, impact, response strategy, and status?

Answer: The risk register

The risk register is the living document that captures all attributes and status of each identified risk.

A schedule risk assessment (SRA) applies three-point duration estimates to network activities. Which estimate set is used?

Answer: Optimistic, most likely, and pessimistic durations

SRAs use optimistic, most likely, and pessimistic durations to model schedule uncertainty.

A CAM adds extra inspection steps and a design review to reduce the probability of a quality escape. Which risk response is being applied?

Answer: Mitigation

Mitigation reduces the probability or impact of a threat through proactive action.

When a mitigation plan for a risk requires new budgeted work, where should that effort be planned?

Answer: In the affected control account or work packages through the change control process

Mitigation work must be authorized and budgeted into the baseline via formal change control.

What distinguishes an 'issue' from a 'risk' in program management terminology?

Answer: An issue has already occurred, while a risk is a potential future event

A risk is uncertain and future-oriented, whereas an issue is a realized event requiring management now.