Home / Summaries / PMP - project management professional study guide / risk-risks-ranking

Study Cards on risk, risks, ranking

Q: What is the core of qualitative risk analysis?

It examines and prioritizes the risks based on their probability of their occurrence and the impact on the project if they did occur. The ranking of the risks by priority guides the consecutive risk reaction process.

Q: In preparing qualitative risk analysis, what are important things to keep in mind for the project manager?

To evaluate the risk management plan To use the risks from the risk register Look at the status of the project and the project type Check the data behind the risks Use the risk management model of the organization Check the assumptions

What is the core of qualitative risk analysis?

It examines and prioritizes the risks based on their probability of their occurrence and the impact on the project if they did occur.
The ranking of the risks by priority guides the consecutive risk reaction process.

In preparing qualitative risk analysis, what are important things to keep in mind for the project manager?

To evaluate the risk management plan
To use the risks from the risk register
Look at the status of the project and the project type
Check the data behind the risks
Use the risk management model of the organization
Check the assumptions

What are the four things are determined as a results of risk ranking?

Risks that require additional analysis
Which risks may be proceeded directly in risk response planning
The non-critical risks
It prioritizes risks

What are the approaches that exist for ranking risks?

Cardinal scales (0.01 - 1.0)
Ordinal scales - common terms like very likely or RAG

What is risk score? What categories are used for risk scoring?

When the risk probability is multiplied with the risk impact. The categories that are commonly used are:

Red condition - high impact , high probability
Amber condition - higher in impact and probability
Green condition - low in impact and / or probability

What is the purpose of data precision ranking?

It takes into consideration

the biased nature of the ranking
the accuracy of the data submitted
and the reliability of the biased ranking submitted

to examine risk scores

Data precision ranking - what is it concerned with

level of understanding of project risk
available data and information
quality of the data and information
reliability of the data about the identified risk

What do we mean with imminent vs distant risks?

Imminent risks are usually considered of higher urgency than distant risks. In this perspective the risk ranking, the time needed for risk response and the risk conditions should be considered.

Which end results of risk ranking should be fed back into the risk register?

The overall risk ranking of the project
Risk categories
Near-term risks
Risks requiring additional analysis
Low priority watch list
Trends in qualitative analysis - allowing the project manager to respond to root causes, predict trends to eliminate, or respond to the risks within the project.