Risk Management: Definitions, Techniques, and Strategies, Quizzes of Digital Marketing

Download Risk Management: Definitions, Techniques, and Strategies and more Quizzes Digital Marketing in PDF only on Docsity! TERM 1 What is Risk? Risk MGMT? DEFINITION 1 The possibility of loss or injury Project risks are uncertainties that can have negative or positive effects on meeting objectives Risk mgmt is a for of insurance. Considered an investment. TERM 2 What is Risk Management? How many runway projects did NO risk mgmt at all? DEFINITION 2 the art and science of identifying, assigning and responding to risk throughout the life of a project in order to best meet project objectives Over 55% TERM 3 Which knowledge are is the most neglected? DEFINITION 3 risk management is the most neglected knowledge area TERM 4 What is Risk Tolerance? DEFINITION 4 the amount of utility (satisfaction) received from a potential payoff (stake) TERM 5 Define: 1) Risk Seeking Individual 2) Risk Neutral Individual 3) Risk Averse Individual DEFINITION 5 -1) higher tolerance for risk-2) indifferent to risk-3) low tolerance for risk TERM 6 Certainty Equivalent DEFINITION 6 The certain amount accepted instead of the bet TERM 7 Risk Premium DEFINITION 7 the difference of the certainty equivalent and the bet (expected value)RP= EV-CE TERM 8 1) Risk Mgmt Planning DEFINITION 8 understand the organization's and the sponsor's approach to risk level of detail varies with needs of the project schedule or financial concerns TERM 9 What questions are addressed in risk mgmt planning? DEFINITION 9 5 W's who what when why how TERM 10 External Risk DEFINITION 10 outside of the company's control will the users use the product? are there enough raw materials? TERM 21 Positive Risk Events DEFINITION 21 performance success of a product produced as part of a project completing work sooner reduced cost collaboration with supplier to produce better products good publicity from the project TERM 22 The root cause DEFINITION 22 the real or underlying reason for a problem TERM 23 Triggers DEFINITION 23 indicators or symptoms of actual risk events TERM 24 3) Qualitative Risk Analysis DEFINITION 24 assess the likelihood and impact of identified risks to determine their magnitude and priority TERM 25 Risk qualitative tools and techniques include: (3) DEFINITION 25 Probability/impact charts top 10 risk item tracking technique- tool for maintaining an awareness of risk throughout the life of a project expert judgement TERM 26 Expected Monetary Value (EMV) DEFINITION 26 = risk event probability X risk event monetary value add up each EMV for eac project to get the total project EMV TERM 27 Decision Tree DEFINITION 27 a diagramming analysis technique used to help select the best course of action TERM 28 4) Risk Response Planning DEFINITION 28 decide how to respond to them TERM 29 4 main risk response strategies DEFINITION 29 risk avoidance- eliminate a threatrisk acceptance- accept the consequences shall the risk occurrisk transference- shift the consequences of a risk to a third partyrisk mitigation- reduce the impact of a risk by reducing the probability of its occurrence OR prepare a contingency plan TERM 30 Contingency Plan/ reserves DEFINITION 30 A contingency plan is a plan devised for an outcome other than in the usual plan. contingency reserves, funds or allowances are funds held by the project sponsor that can be used to mitigate cost or schedule overruns if unknown risks occur TERM 31 Workarounds DEFINITION 31 unplanned responses to risk events that must be done when there are no contingency plans TERM 32 5) Risk Monitoring and Control DEFINITION 32 main outputs are: requested changes recommend corrective and preventive actions updates to risk register, project plan TERM 33 Project Procurement Mgmt DEFINITION 33 procurement means: acquiring goods and/or services from an outside source also known as: purchasing outsourcing TERM 34 Why outsource? DEFINITION 34 reduce costs to allow client org to focus on core business provide flexibility access skills and technology increase/transfer accountability TERM 35 4 procurement processes DEFINITION 35 1) procurement planning- what and when to procure2) conduct procurements- bid solicitation and source selection3) control procurements- managing the relationship with the vendor4) close procurements- completion and settlement of the contract