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Managing Projects

Managing risk and change

  • 3 things to know
  • A2 Unit 1

Overview

Project risk, recorded in a risk register and four standard responses to an identified risk.

What you need to know

Answer each one before you reveal it.

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Key term

What is recorded in a risk register?

Key term

How are risks prioritised?

Process

Describe the steps of a formal change control procedure.

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a project risk?

    Model answer

    A project risk is something that has not happened yet but would damage the project's time, cost or quality if it did, such as a key developer leaving or a supplier delivering late.

  2. 2

    Distinguish a risk from an issue.

    Model answer

    A risk is a possible future event managed by planning ahead, while an issue is something that has already happened and must be dealt with now.

  3. 3

    What is recorded in a risk register?

    Model answer

    A risk register records each identified risk, how likely it is, how serious the effect would be, who owns it, the action planned to reduce it and the fallback if it happens anyway.

  4. 4

    How are risks prioritised?

    Model answer

    Risks are prioritised by combining likelihood with impact, so a risk that is both probable and damaging is dealt with first, while an unlikely risk with a trivial effect is simply recorded and watched.

  5. 5

    Name the four standard responses to an identified risk.

    Model answer

    The four standard responses are to avoid the risk by changing the plan, to reduce its likelihood or impact, to transfer it to someone else such as an insurer or supplier, and to accept it with a contingency ready.

  6. 6

    Give an example of reducing a risk rather than avoiding it.

    Model answer

    The risk of losing the only developer who understands the payment code is reduced by pairing a second developer with them and requiring the design to be documented, although the person may still leave.

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