Risk Assessment & Mitigation Flashcards

What is the primary goal of risk assessment in project management?

Answer: To identify and evaluate potential project threats

The primary goal of risk assessment in project management is to systematically identify potential risks, analyze their likelihood of occurrence, and evaluate their potential impact on project objectives. This process allows project teams to understand the nature and magnitude of threats, enabling them to develop appropriate response strategies. It does not aim to eliminate all risks, but rather to manage them effectively.

Which risk response strategy aims to minimize the impact of a risk?

Answer: Mitigation

Risk mitigation is a risk response strategy that involves taking actions to reduce the probability of a risk occurring or to lessen its impact if it does occur. This strategy focuses on minimizing the negative effects of identified risks through various measures, such as implementing new processes, conducting additional testing, or diversifying resources. Avoidance eliminates the risk, while acceptance acknowledges it without action.

What is the purpose of a risk register in project management?

Answer: To document identified risks and response plans

A risk register is a comprehensive document used in project management to record and track all identified risks throughout the project lifecycle. For each risk, it typically includes details such as its description, probability, impact, owner, and planned response strategies. This central repository helps in monitoring risks and ensuring that appropriate actions are taken.

Which factor is a common cause of project risk?

Answer: Scope creep

Scope creep is a frequent cause of project risk because it introduces unplanned work, which can lead to increased costs, schedule delays, and resource strain. When the project scope expands without proper management and adjustment, it creates uncertainty and can jeopardize the project's ability to meet its original objectives. Well-defined scope and accurate estimation, conversely, reduce risk.

Which tool is commonly used for qualitative risk assessment?

Answer: Risk matrix

A risk matrix (or probability-impact matrix) is a common tool used for qualitative risk assessment. It helps project managers prioritize risks by plotting their likelihood of occurrence against their potential impact on project objectives. This visual tool allows for a quick and effective way to categorize and rank risks, guiding further analysis and response planning.

What is the primary advantage of proactive risk mitigation?

Answer: To minimize disruptions and ensure smooth execution

Proactive risk mitigation involves identifying potential risks and developing response strategies *before* they occur. By taking preventative measures, project managers can reduce the likelihood or impact of risks, thereby minimizing disruptions, avoiding costly rework, and ensuring that the project progresses smoothly and efficiently towards its objectives. This approach is more effective than reacting to problems after they arise.