The stakeholder is unwilling to make decisions that would result in negative consequences to the project. Which of the following describes the stakeholder's attitude regarding project risks?
The stakeholder is unwilling to make decisions that would result in negative consequences to the project. Which of the following describes the stakeholder's attitude regarding project risks?
The stakeholder's unwillingness to make decisions that might lead to negative consequences indicates a tendency to avoid risk. This behavior is best described as risk averse, as risk-averse individuals prefer to minimize exposure to potential negative outcomes.
A project manager is developing the risk management process and schedules a risk planning workshop at the start of the project. Upon receiving the invitation, a senior stakeholder emails the project manager stating that a risk management plan is not needed since this is a small project, and lack of a plan will reduce costs.
Which of the following should the project manager do?
Risk management is a fundamental aspect of project management that helps in identifying, assessing, and mitigating risks associated with a project. Even small projects can benefit from risk management practices as they can help avoid potential issues that might arise and impact the project's success. Advising the stakeholder that risk management is a valuable undertaking and must be applied to all projects to some degree is the correct approach, as it underscores the importance of risk management without undermining the senior stakeholder's concerns.
What is a project issue within a project environment?
A project issue is a negative effect on a project objective arising from the occurrence of a threat. This means that the issue is an inherent problem that has already manifested itself and is adversely impacting the project's goals.
What is the purpose of mitigating negative risks as a part of the risk response process?
The purpose of mitigating negative risks as part of the risk response process is to reduce the probability of a risk happening, and/or reduce the severity of the impact. Mitigation involves taking steps to lower the likelihood of occurrence or to lessen the consequences if it does occur.
In the country where a project is being executed, customs procedures are complex and change frequently. During the risk identification process, the project team identifies a risk related to delays in customs on substantial equipment that will likely occur. Equipment delays on this project could lead to the project cancellation.
How should the probability and impact be characterized for this risk?
In this scenario, the customs procedures are complex and frequently changing, and the project team has identified that equipment delays are likely. The word 'likely' indicates a high probability of the risk occurring. Additionally, given that these equipment delays could lead to the cancellation of the project, the impact is also high. Therefore, the risk should be characterized as having high probability and high impact.