Residual Risk and Secondary Risk- PMP/CAPM

Residual Risk and Secondary Risk The PMBOK® Guide ver 6 defines risk as “An uncertain event or condition that, if it occurs, has a positive or negative effect upon at least one project objective.” Residual Risks The risks that might remain after the planned response of risk and those that have been purposely accepted. PMBOK […]

Read more
Risk Attitude, Appetite, Tolerance and Threshold – PMP/CAPM

Risk Attitude, Risk Appetite, Risk Tolerance and Risk Threshold Risk Tolerance According to PMBOK Guide 6th Edition, Risk tolerance is the identified range of acceptable outcomes Risk tolerance informs you regarding the sensitivity of the organization or to people’s life. High tolerance refers to individuals’ capability to take high-level risk while low tolerance means people […]

Read more
Mitigation plan, Fallback Plan, Contingency Plan and Workaround – PMP/CAPM

Mitigation plan, Fallback Plan, Contingency Plan and Workaround Mitigation plan In risk mitigation, action is taken to reduce the probability of occurrence and/or impact of a threat. PMBOK 6 is used for the risk with high probability and impact and therefore place in action to minimize the impact. Risk mitigation revolves around reducing the impact […]

Read more
Contingency Reserves and Management Reserves – PMP/CAPM

Contingency Reserves VS Management Reserves Reserves is a buffer in terms of Schedule or Cost while estimating is added to the estimated schedule and cost to account for risks or uncertainties both for known and unknown risks Padding is unwelcomed practice as it adds unplanned values or reserve over the output of estimations As explained in […]

Read more
Passive Acceptance of Risk and Active Acceptance of Risk – PMP/CAPM

Passive Acceptance of Risk and Active Acceptance of Risk These are two different risk response strategies to deal with the risks on the project. The idea behind good risk response strategies is to provide the team with various options and identify the actions that could reduce or eliminate threats to project objectives. Risk management team […]

Read more
Known Risks and Unknown Risks – PMP/CAPM

Known Risks and Unknown Risk The risk is future uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. [PMBOK6] The risk is the effect of uncertainty on objectives, and an effect is a positive or negative deviation from what is expected. [ISO31000] Project risk […]

Read more
Negative Risk (threat) and Positive Risk (opportunity) – PMP/CAPM

Negative Risk (threat) and Positive Risk (opportunity) The risk is a future uncertain event which may have positive or negative impact on the Project. PMBOK 6 Risk like changes is unavoidable and integral part of project life. We don’t want to be caught off guard in the event of the risk happening. Thinking methodically about […]

Read more
Event-based Risk and Non-Event Risks

Event-based Risk and Non-Event Risks The risk is future uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives. [PMBOK6] The risk is the effect of uncertainty on objectives, and an effect is a positive or negative deviation from what is expected. [ISO31000] Event-Based Risk […]

Read more
Issues and Risk

Issues and Risk The risk is a future uncertain event which could have a positive or negative impact on the Project or one of its objective A project issue is a problem that is actively disrupting a project or putting its success in doubt I am sure with the above definitions you have understood that […]

Read more