Project Risk Management Processes and Techniques — Flashcards

Key Project Risk Management Processes
The risk management process involves systematic steps to manage both potential downsides and opportunities: 
Risk Management Planning: Defining the approach, tools, and data sources to be used.
Risk Identification: Identifying potential risks (threats or opportunities) and documenting them in a risk register.
Risk Analysis (Qualitative/Quantitative): Estimating the probability, impact, and exposure to prioritize risks.
Risk Response Planning: Developing strategies to handle risks, including mitigation or contingency plans.
Risk Monitoring and Control: Tracking identified risks, monitoring for new ones, and evaluating the effectiveness of the risk management plan throughout the project lifecycle. 

Risk Management Techniques and Tools
Risk Register: A central document to list and track all identified risks.
Risk Matrix (Probability and Impact Matrix): A visual tool to prioritize risks based on their likelihood and consequences.
SWOT Analysis: Evaluating Strengths, Weaknesses, Opportunities, and Threats to identify risks.
Decision Tree Analysis: A graphical tool that evaluates different decision paths and their possible outcomes.
Tornado Diagrams: A sensitivity analysis tool used to identify which, among several factors, have the most potential impact on a project.
Brainstorming & Delphi Technique: Techniques to identify potential risks through group consensus. 

Risk Response Strategies
Avoid: Changing the project plan to eliminate the threat.
Mitigate: Reducing the probability or impact of a risk.
Transfer: Shifting the impact of a risk to a third party, such as insurance or outsourcing.
Accept: Acknowledging the risk without taking action unless it occurs.
Escalate: Moving the risk to a higher level of authority, if it is outside the project scope.