| Avoiding risk | Elimination of the risk cause before the project begins.
|
 |
|
|
| Budget reserve | Reserve setup to cover identified risks that may occur and influence baseline tasks or costs. These reserves are typically controlled by the project manager and the project team. See management reserve.
|
|
|
|
| Change management system | A defined process for authorizing and documenting changes in the scope of a project.
|
|
|
|
| Contingency plan | A plan that covers possible identified project risks that may materialize over the life of the project.
|
|
|
|
| Management reserve | A percentage of the total project budget reserved for contingencies. The fund exists to cover unforeseen, new problems—not unnecessary overruns. The reserve is designed to reduce the risk of project delays. Management reserves are typically controlled by the project owner or project manager. See budget reserve.
|
|
|
|
| Mitigating risk | Action taken to either reduce the likelihood that a risk will occur and/or the impact the risk will have on the project.
|
|
|
|
| Opportunity | An opportunity is an event that can have a positive impact on project objectives.
|
|
|
|
| Retaining risk | Simply accepting the risk and not taking any pre-emptive action to mitigate the risk.
|
|
|
|
| Risk | The chance that an undesirable project event will occur and the consequences of all its possible outcomes.
|
|
|
|
| Risk breakdown structure (RBS) | A hierarchical depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks.
|
|
|
|
| Risk register | A risk register details all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status.
|
|
|
|
| Risk profile | A list of questions that addresses traditional areas of uncertainty on a project.
|
|
|
|
| Risk severity matrix | A tool used to assess the impact of risks on a project.
|
|
|
|
| Scenario analysis | Scenario analysis is the easiest and most commonly used technique for analyzing risks.
|
|
|
|
| Time buffer | A contingency amount of time for an activity to cover uncertainty—for example, availability of a key resource or merge event.
|
|
|
|
| Transferring risk | Shifting responsibility for a risk to another party.
|