Flashcards in Plan Risk Responses Deck (13)
What is the purpose of Plan Risk Responses?
The process of developing options and actions to enhance opportunities and reduce threats to project objectives.
What is Contingency Plan?
Planned risk response that's implemented after the risk occurs. (Referred to as secondary or alternative course of action)
What is Fallback Plan?
Alternate set of actions and task available in the event the primary plan needs to be abandoned because of issues, risk, and other causes.
What is Risk Residual?
Risk that remains after the risk response has been implemented.
What is Secondary Risk?
Risk that arises as the direct result of implementing a risk response.
What are the 2 types of Risk Reserves?
1) Contingency Reserves, 2) Management Reserves
What is Contingency Reserves?
Risks that can be foreseen and derived for time and cost. Managed by Project Manager. (Known unknown)
What is Management Reserves?
Unforeseeable risks to the entire project and can be derived for time and cost. Not included in schedule or cost baseline. Managed by Management. (Unknown unknown)
What are the tools and techniques for Plan Risk Responses?
1) Strategies for Negative Risks (Threats), 2) Strategies for Positive Risks (Opportunities), 3) Contingent Responses Strategies, 4) Expert Judgement
What are the 4 Strategies dealing with Negative Risks?
1) Avoid - change something so that the risk no longer a threat, 2) Transfer - shift risk to a 3rd party (contract), 3) Mitigate - reduce the probability of it occurring and minimize the impact if it does, 4) Accept - live with risk; a) active acceptance - setting aside a contingency reserve but doing nothing further or b) passive acceptance - does not have contingency reserve
What are the 4 Strategies dealing with Positive Risks?
1) Explore - change something to ensure it occurs, 2) Share - share with a 3rd party (joint agreement), 3) Enhance - increase the probability and and positive impacts, 4) Accept - not accept and do nothing.
What is Contingent Response Strategies?
Plans for what to do in a certain scenario.