444 Contingency reserve An amount of time and/or cost added tothe project to eal with known unknowns, ie, identified risks Contract A legal agreement forthe pparchase or sale of goods and services Corrective action Changes implemented in order to bring performance back i line with the project management plan Data quality assessment Determining “Flow well understood i the risk?" Decision tree A model of situation ‘sed to see the potential impacts of ecisions by taking into account associated risks, probabilities, and impacts Definitions of probability and impact A standardized interpretation ofthe numbering system used to evaluate risks Delphi technique A process of seeking ‘contensus of expert opinion Earned value analysis A method to quantitatively measure and monitor overall project performance agains the project baseline Enhance Increase the expected time, ‘qality, or monetary value ofa risk by increasing its probability or impact of Ensure compliance Make sure policies, procedures, and plans are being followed Estimates for time and cost Anticipated time or cost of project activities Evaluate the effectiveness Measure to ‘determine the results of actions taken Expectations Stakeholders’ needs or intents that may be unstated, but are _motivatrs or non- motivators for working: ‘on the project Expected monetary value ‘Tbe probability weighted average ofall possible ‘eteomes,caleulated by summing all che ‘quantitative probabilities times impact for risks on the project Expert interview A process for ‘obtaining opinions or other inpat on the project ftom experts Exploit Increase the opportunity by making the cause more probable Failure Modes and Effects Analysis. (FMEA) A tool to identify potential failure modes, determine thei dicts and ‘identify actions to mitigate the failures Fallback plan Planned actions to be taken if the risk happens and contingency plane are not effective Go/no-go decision “Is the project t00 risky to continue, compared to the potential benefits?" Historical records Information from ‘Samomacnanain te Pee sat osamaHuman resource plan A formal plan for when and how resources will be involved Jn the project, and what roles they wil perform Identify Risks process Determining specific sks by project and by activity Impact. The effect on the activity or the project ithe risk (threat or opportunity Input Something that must be done ‘or information that must already have been collected before you can adequately complete the next process Inputs to risk management Things that must be done or information that must be collected before you can adequately complete risk management Insurance Assigns the lability for arsk to someone ele Iterative Repeated throughout che life of the project Lessons learned What went right, wrong, or would have been done differently by past project teams if they could execute their projects again Lessons learned management Ensuring that lessons learned are captured on all, projects and made available for use on other projects Teaser enc NA List of risks to move forward. Rises that will be addlzessed in the Peform (Quantitative Risk Analysis or Pan Risk ‘Responses processes Manage reserves Control the appropriate tse of reserves ‘Management reserve An ameunt of time and/or cost added to the prject 0 deal with unknown unknowns, ie iss that have not been identified Methodology How rsk will be handed fn the project and what data anc tools will be used Metrics Standards of performaxce that, once evaluate, el how werk is performing against the plan Mitigate Reduce the expected monetary value of a risk by reducing it impact or probability of occurrence Mitigate the impact Decrease she impact ofa threat or increase the impact of an opportunity [Nitigate the probability Decrease the probability fa threat or increase it for an ‘opportunity Monitor Oversee project performance and activites 445446 Monitor and Controt Risks process Implementing the risk Fesponse plans as risks occur, looking forse rigger, identifying new Fiske, and evaluating the effectiveness of risk responses ‘Monte Carlo simulation Computerized method of estimating that simulats the project to determine time or cost estimates Based on probability distributions Motivational bias Intentionally biasing results in one dteetion or another Network diagram A dependeney- fexquenced organization of the projets Nominal group technique A process of tollecting and ranking risks contributed by select group ‘opportunities Possible events that may positively impact project rgantzational process assets Company policies, procedures, templates, and Ihistorical information path convergence As illustrated on 8 fetwork diagram, many activites leading into a central activiey| Perforin Qualitative Risk Analysis process Subjecivey analyzing the risks Ebtained inthe Identify Risks process and Seeing which reks warrant a response; treating "short list” of risks Perform Quantitative Risk Analysis process Numerically analyzing theriske ptained in the Kdemtify Risks process and ‘deciding which risks warrant a response tind analyzing the extent of overall project risk Pan Risk Management process Determining how risk Franagement will be done on the prefect, {ho will be involved and procedures to be fallowed Plan Risk Responses process Determining what can bedone fo reduce the overall risk of the project by (decreasing the probability and impact of threats and inereasing the probability and impact of opportunities Pre-mortem ‘Theoretical “evaluation” of f project before it has actually been done Probability ‘The likelihood that ask ((hreat or opportunity) will occur Probability and impact scales A Standardized method of determining probability and impact of identified risks Procurement management plan A. Formal of informal plan that desesbes what ‘parel) ofthe project will be purchased Cinder contractor purchase order i includes a plan for managing the sellers \Project background {information Information ftom before the projet was approved, articles written shout similar projects, and other such information Project charter High-level directive from the sponsor outlining the overall objectives of the project; it authorizes the existence of a project Project constraints Anything that limits the team’s options, ex, scope, time, coat, quality, risk, resources, and customer satisfaction Project management office (PMO) ‘A department that supports project ‘management within an organization Project management process Initiating, planning, executing, monitoring and fontroling, closing Project scope statement A document ‘which describes the approved product and project requirements Project sponsor ‘The individual or group ‘who authorizes the project and provides the financial resources Project team Those who will be ‘executing the project management plan Prompt list A generic lise of risk categories Pure (insurable) risk A rsk of loss ‘Saar nctain es NE Re Refine Change or modify Reporting formats How the reslts of risk management will be documented and ‘comminiested Reserve An amount oftime ani/or cost added tothe projet to account fr sks Residual risks Risks that remain after sisk response planning Risks F sible events that may rosiively cenegati‘mpact a project Risk action owner ‘The person assigned by the risk owner to imglement preapproved tsk responses Risk audit Analysis of what the project team has done for risk management to eteemine whether it has worked Risk averse Unwilling to accep isk Risk breakdown structure A graphic illustration of risk categories Risk categories Common areasor sources of risk on similar projects Risk exposure The level of rskon a project Risk factors Probability, impact, expected timing, frequency of the event Risk governance Oversight of the entire risk management process aTRisk management department A. department that supplies polices and sistance with projec risk management efforts Risk management plan A plan for how risk management will be done on project, who should be involved, when rise ‘management activities should be done, and how frequently they should be done Risk management process A systematic and proactive approach to taking control of projects by understandiog or decreasing the uncertainties Risk owner ‘The person assigned by the projet manager to watch for triggers and manage the risk cesponge if the risk occurs Risk ranking A comparison ofthe risk score forall risks on the project Risk rating A number between 1 10 10 chosen to evaluate the probability or impact ofa rise Risk reassessment Looking for new risks ‘when changes are made on the project Risk register List of identified risks {hreats and opportunites) forthe project, and other information added throughout the risk management process Risk reserve report A running balance ofthe cemainder ofthe reserve Risk response plans Documentation of ‘what wil be done to reduce the oerall risk ofthe project by decreasing the probability and impact of threats and increasing the probabilicy and impact of opportunities Risk review Analysis of what the project team has planned for risk management 0 determine whether i is stil appropriate Risk score Calculated by mukiplying probability times impact to obtain a ‘numerical value foreach risk. Risk team ‘Those helping with te management ofthe risk management process Risk thresholds Amounts of risk the company and key stakeholders are willing to accept Risk tolerance areas Areas in which the company and key stakeholders are willing to accept ri Risks Possible events that may positively for negatively impact «project Roles and responsibilities Who will do what on the project Root cause Undedlying risk Secondary risks Risks chat are generated bya response to another risk Share Retain appropriate opporsunities ‘or parts of opportunites instead of attempting to transfer them to others 448 ‘Sanomchonaaca Genoa Hebe oe ; ; |Stakeholder register Information about individuals and organizations who are actively involved in the projet or who may affect orbe affected by the project, Stakeholders Individuals and ‘organizations who are atively involved in the projector may affect or be affected by the project Technical performance measurement Measurement of factors such as srength of the concrete, measurable wind resistance of building, ‘meeting functionality requirements, strength of the plastic used in a product, tte, to identify deviations from the pla ‘Threats Possible events that may negatively impact a project Timing When/how often rise management activities wll be performed throughout the project Tracking How seconds of risks will be documented for the benefit the cursent project and future projects Transfer Assign the risk o someone else by subcontracting or buying insurance TWieger Barly warning sign that ask bas ‘occurred or is about to occur Uncertainties Unknowns Work breakdown structure Adiagram that shows the decomposition of the project into smaller, more manageable pieces Workarounds Unplanned responses to unidentified risks that occur 449A Accept 195,196, 198,200 Afnity diagram | 95-97, 107 Assumptions 31,80,128-129 Assumptions testing 128-129 Avoid 195,196 B Bar chart 145-146, 263-264 Bias 131 Brainstorming 95-94, 107 Budget 51 Business risk 13 c Cause and effet diagram 103-104 Cause-risk-effect format 74 Checklist 84-85 Cognitive bias 131 Common causes ofrisk 143-144 Communications management plan 54-35, 260-264, 290 Contingency plan 205-206, 209,225 Contingency eserve 210,225 Contract 218,225 > Data quality assesement 129-130 Decision tree 106, 179-180 Definitions of probability and imact 51 Delphi technique 102-103, E ned value analysis 254-255 Enhance 196,199 Estimates 33,259-260 Expectations 30 Expected monetary value 167-170 Expert interview 97-101 Exploit 196,199 A Balhae modes and effects analysis (FMEA) 104-105, 106, 181 Fallback plan 206,209, 225 Forms 82-83 451452 6 Go/no-go decision 140,203, H Historical records 37,92, 138, 269 ‘Human resource phan 34 1 dentify Risks process 67-111 Impact 13, Tnput 21 Tnputs to risk management 21-39 Insurance 195,223 * Issue 250 Trerative 12-13,201 L Lessons learned 37, 265-266, 285 ” Management reserve 210 Methodology St Metiics 285-286 Mitigute 195,197 Monitor and Control Risks process 245-271 ‘Monte Calo simulation 175-17, ‘Motivational bias 131 N Network diagram 32-33, 144 Nominal group technique 102 ° Opportunites 11,78-79,196, 199-201 Onganizational process asses 36 Pp Path convergence 33,144 Perform Qualitative Rsk Analysis process 127-148 Perform Quantitative Rsk Analysis process 163-182 Plan Risk Management process 47-60 Plan Risk Responses process 193-226 Pre-mortem 95 Probability. 13 Probability and impact scales 130-131 Procorenient management plan 36 Project background information 26-27 Project charter 27-28 Project constrains 30-31 Project management office (°MO) 48-49, 283-284 Project management process 24-25 Projectrisk ranking 53,133-140, Project risk score 53, 137-188 Project scope statement 30 Prompt lit 88-89 Pure (insurable) risk 13 R Reporting formats 51 Reserve 209-215, 225 Residual risks 208,225 Risk action owner 204 Riskeaudit 253-254 Riskaverse 38 Risk breakdown structure 89 Risk categories 87, 111 Risk factors 13 ‘Seaman sen eaRisk governance 49,283-287 “Trigger 109,207,225 Risk management department 49 Risk management plan 54-60 Y Risk management process 11-12,14,48 Uncertainties 11 Risk owmer - 109-110,203-205,225 Risk ranking 53, 134-136 iW Risk rating 53 ‘Work breakdown structure (WBS) 31-32 Risk reassessment 258-259 Workatound 250 Risk reserves 209-214, 205 Risk reserve report 264-265 Risk response plans 195-200,247 Risk review 251,252-253 Risk score 53 Risk team 49-50 Risk thresholds 39 Risk tolerance areas 38,51 RMC Risk Notes 86-87, 107 Roles and responsibilities 51 Root cause 76 s Secondary risks 207,225 Share 196,199 Sponsor 28 Stakeholder register 28 Stakeholders 29-30 Strengths, weaknesses, opportunities, and threats (SWOT) analysis 105 7 ‘Technical performance measurement 257 ‘Threats 11,77, 195-197 Timing St ‘Tracking 51 Transfer 195,198 Trends 140,182 ‘Sims ha at apnoea 453