CQE Primer - Risk Management, CQE -
Chapter 11 - Risk Management
Risk - ANS The probability of an undesirable event occurring and the impact of that event
- The product or activity does not meet expected performance levels
- The actual costs are higher than budgeted costs
- The delivery or timing of the product or activity is too late - ANS Failure of a project or venture
can be experienced in any combination of the following three ways:
- Technical performance
- Supportability risk
- Environmental risk
- Cost risk
- Schedule risk - ANS Performance, cost, and schedule risks can be segmented into five risk
areas. What are they?
- Identify
- Analyze
- Plan
- Track
- Control
- Mitigate
- Communicate - ANS The risk management continuous process consists of the following: (7)
Identify - ANS Searching for and locating risks before they become problems that adversely
affect the project or activity is the description of which portion of the risk management
continuous process?
Analyze - ANS Transforming risk data into decision-making information is the description of
which portion of the risk management continuous process?
Plan - ANS Translating risk information into decisions and actions (both present and future) and
implementing those actions is the description of which portion of the risk management
continuous process?
Track - ANS Monitoring the risk indicators and actions taken throughout the project or activity is
the description of which portion of the risk management continuous process?
, Control - ANS Adjusting for deviations from planned actions is the description of which portion
of the risk management continuous process?
Mitigate - ANS Reducing the impact of any unforeseen event is the description of which portion
of the risk management continuous process?
Communicate - ANS Providing visibility and feedback data, internal and external to the project
or activity on current and emerging risks is the description of which portion of the risk
management continuous process?
Communicate - ANS This is the KEY element to a successful risk aversion program
- To reduce risks
- To increase project success
- To control the risks - ANS Why is the proper use of risk management tools required? (3)
Risk identification - ANS This involves determining which risks might affect the project or
activity and documenting their characteristics
- Documentation Reviews
- Information Gathering Techniques
- Interviewing Key Experts
- Assumption Analysis - ANS The tools and techniques for risk identification include: (4)
Documentation Reviews - ANS This is a structured review of project plans and assumptions
Information Gathering Techniques - ANS This indicates that brainstorming is a powerful
technique to obtain a comprehensive list of potential risks to be addressed
Interviewing Key Experts - ANS This activity can shed some additional light on the risk
identification process
Assumption Analysis - ANS This is an exploration of the validity of neutralizing the risk of
unverified assumptions
brainstorming - ANS This type of risk identification process is the most prevalent in the industry
Risk response - ANS The process of developing contingency plans to reduce threats to the
project objectives
- Avoidance
- Transference
- Mitigation
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