acceptance
A risk response appropriate for both positive and negative risks; often used for smaller risks within a project.
ambiguity risks
Risks that have an uncertain and unclear nature which are impossible to predict.
business risks
May have negative or positive outcomes, such as using a less experienced user to complete a task or allowing phases to overlap.
cardinal scale
Ranking approach to identify the probability and impact by using a numerical value from .01 (very low) to 1.0 (certain).
decision tree
Method to determine which of 2 or more decisions is the best one. This model examines the costs/benefits of each outcome and weighs the probability for success for each of the decisions.
Delphi technique
Anonymous survey method that asks experts about risks in a project. The results of the survey are analyzed by a 3rd party then circulated to the experts.
enhancing
Risk response that attempts to increase the conditions favorable to a risk to ensure that a positive risk event will likely happen.
escalating
Risk response appropriate for both positive and negative risks events ... may be outside the PM's authority to act upon.
expected monetary value (EMV)
Monetary value of a risk exposure based upon the probability and impact in the risk matrix.
exploit
Risk response that takes advantage of the positive risks within a project.
Ishikawa diagram
Cause and effect diagrams (also called fishbone) used to find root cause of factors causing risks in projects.
mitigation
Risk response effort to reduce the probability and/or impact of an identified risk in the project.
PESTLE
Examines risks in the political, economic, social, technological, legal, and environmental domains.
probability and impact matrix
Ranks the probability of a risk event occurring and its impact on the project if it happens.
pure risk
Risks with only negative outcomes, such as loss of life, fire, theft, natural disasters, etc.
qualitative risk analysis
Examines and prioritizes risks based on their probability of occurring and impact on the project. Does not use mathematical models.
quantitative risk analysis
Numerically assesses probability and impact of risks. It also creates an overall risk score for the project.
RAG rating
Ordinal scale using red, amber, green to capture the probability, impact, and risk score.
residual risks
Risks expected to remain after a risk response.
secondary risks
New risks created as a result of a risk response.
sensitivity analysis
Quantitative risk analysis tool that examines each risk to determine which risk has the largest impact on the project's success.
TECOP
Prompt list in risk identification for technical, environmental, commercial, operational, and political factors of the project.
transference
Transfers ownership of the risk to another party, such as insurance, licensed contractors, etc.
variability risks
Risk based on the variations that may occur in the project, such as production, number of quality errors, or even weather issues.
VUCA
Risk identification that examines volatility, uncertainty, complexity, and ambiguity of risk factors.