Exam 8: Managing Risk

_______ involves developing an action plan to reduce the likelihood of occurrence or potential impact of each risk, establishing a trigger point for when to implement the actions to address each risk, and assigning responsibility to specific individuals for implementing each response plan.

Project prices and budgets should include________ to pay for additional costs associated with implementing response plans.

_________ 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.

The risks should be those that are somewhat likely to occur and/or can have a significant positive impact on accomplishing the project objective.

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.

A risk is an uncertain event that, if it occurs,

_________ contains the steps for how to mitigate the risk if it should occur during the project.

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

________ is a rating of low, medium, or high based on the expected level of change in completing the project's objective if the risk were to occur during the project.

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

_______ are a good forum for regularly reviewing, updating, and addressing risks.

Risks may change as the project progresses and should be reflected in

A risk assessment matrix is a tool for

__________ can be to avoid the risk, mitigate the risk, or accept the risk.

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

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

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

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

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.

The project manager needs to set the tone for encouraging open and timely discussion of risks among the project team.