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Risk Takers - to - Roles

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Definition     Editor's Choice
Risk Takers
People willing to take risks.
Editor's Note: Usually implies that these people are willing to take more risk than most people. [D05835]

 Q&A p191
Risk Tolerance
The threshold levels of risk exposure that, with appropriate approvals, can be exceeded, but which when exceeded, will trigger some form of response (e.g. reporting the situation to senior management for action). [D06235]

The willingness of a person or organization to accept or avoid a risk. How much one is willing to lose if the risk happens.
Editor's Note: Or how much one expects to gain in order to accept the risk. [D05836]

Risk Tolerance Line
A line drawn between risks that can be accepted or for which suitable actions have been planned, and risks that are considered sufficiently serious to require referral to the next higher level of authority. [D05837]

 PRNC2 2005
Risk Transfer
A risk response for a threat, whereby a third party takes on responsibility for an aspect of the threat. [D06236]

A contractual arrangement between two parties for delivery and acceptance of a product where the liability for the costs of a risk is to be transferred from one party to the other. [D01749]

Risk Treatment
Selection and implementation of appropriate options for dealing with risk. [D04519]

Risk Trigger
A threshold value set for a particular risk that, when reached, sets off an alarm that causes management to react with a planned response. [D05484]

Triggers, sometimes called risk symptoms or warning signs, are indications that a risk has occurred or is about to occur. Triggers may be discovered in the risk identification process and watched in the risk monitoring and control process. [D05589]

Risk Value
The number obtained when numeric impact and likelihood values are multiplied. [D01750]

Risk, Aggregated
The overall level of risk to the program when all the risks are viewed as a totality rather than individually. This could include the outputs of particular scenarios or risk combinations. [D06237]

Risk, close-down report
A report prepared by the risk process manager after the project has terminated. [D05085]

Risk, endogenous
Risk to the project that can be traced to actions from within the project. [D06518]

Risk, exogenous
Risk to the project that originates from events and emerging conditions outside of the project, but that nevertheless impacts the project. [D06519]

Risk, Inherent
The exposure arising from a specific risk before any action has been taken to manage it. [D06238]

Risk, Internal
A risk under the control of the project team. [D06016]

Risk, Operational
Failure to achieve business/organizational objectives due to human error, system failures and inadequate procedure and controls. [D06239]

Risk, Portfolio
Any risk to the objectives of the portfolio as a whole or to multiple elements of the portfolio, including the risk of events being compounded. [D06341]

Any project portfolio risk that is typically endemic in the organization and is therefore likely to affect all projects in the portfolio whatever their type or size. [D06240]

Risk, post award
The risk of cost increases after contract award of a work package. [D06520]

Risk, process plan
A plan prepared at the outset by the risk process manager, which establishes the risk strategy and baseline. The plan is updated as the work proceeds. [D05086]

Risk, Program
Program risks are those that not only encompass the risks of individual projects but specifically identify those risks that may be repeated in subsequent projects in the program and hence may be mitigated by an early single uniform action. Program risks may also have a snowball effect on subsequent projects in the program and their associated systems. The latter class becomes progressively more work intensive to resolve. [D06241]

Risk, Project
The cumulative effect of the chances of uncertain occurrences that will adversely affect project objectives. It is the degree of exposure to negative events and their probable consequences. Project risk is characterized by three risk factors namely: risk event, risk probability and the amount at stake. In an uncertain environment, risk is the opposite of opportunity. [D01719]

The probability of an undesirable outcome. [D01716]

The possibility that something can go wrong and interfere with the completion of the work. [D03729]

 PPS&C p341
Combination of the probability or frequency of occurrence of a defined threat or opportunity and the magnitude of the consequences of the occurrence.
Editor's Note: Alternatively, combination of the likelihood of occurrence of a specified event and its consequences. Also used to imply potential occurrences or threats that would jeopardize the success of a project, or the probability of an undesirable outcome. [D04504]

An ongoing or upcoming concern that has a significant probability of adversely affecting the success of major milestones. [D04768]

A measure of the potential inability to achieve overall program objectives within defined cost, schedule, and technical constraints.
Risk has two components:
  1. The probability of failing to achieve a particular outcome and
  2. The consequences of failing to meet that outcome.

The likelihood of variation in the occurrence of an event, which may have either positive or negative consequences.
Editor's Note: In our view, this definition is more suited to the term "Uncertainty" which encompasses both positive and negative events. [D05094]

There may be external circumstances or events that must not occur for the project to be successful. If you believe such an event is likely to happen, then it would be a risk. (Contrast this with the definition of "assumption".) Identifying something as a risk increases its visibility, and allows a proactive risk management plan to be put into place.
If an event is within the control of the project team, such as having testing complete by a certain date, then it is not a risk. If an event has a 100% chance of occurring, then it is not a risk, since there is no "likelihood" or risk involved. (It is just a fact).
Examples of risks might be that "reorganization in the customer organization may result in key people being reassigned ..." or "The new hardware may not be able to handle the expected sales volume ...". [D05095]

The possibility of suffering loss, injury, disadvantage, or destruction. [D05208]

Uncertainty of outcome, whether positive opportunity or negative threat. Some amount of risk taking is inevitable if a project is to achieve its objectives. [D05477]

 PRNC2 2002
Project risks are those concerned with the successful completion of the project. Typically these risks include personal, technical, cost, schedule, resource, operational support, quality and supplier issues. [D06242]

Risk, Projects
The likelihood of an event occurring that is detrimental to project success. Identification of all project risk categories and assessing their probability and impact is an important aspect of project management. Therefore, sufficient time and resources should be devoted to risk assessment as an integral part of the project plan. Managing and controlling risk involves assigning responsibility to those in the project team who can best control the consequence of each risk category. The objective is to mitigate risk/cost on the project. Unpredictable project risks should be assumed by the owner since they cannot be costed. [D03089]

Risk, Proximity
The time factor of risk, i.e. the occurrence of risks will be due at particular times, and the severity of their impact will vary depending on when they occur. [D06243]

Risk, Quality
Failure to complete tasks to the required level of technical or quality performance. [D06190]

Risk, Strategic
Any risk event which has serious or catastrophic consequences even though the probability of occurrence may be quite low.
Editor's Note: Sometimes referred to as a "Show stopper". [D05127]

Risk concerned with where the organization wants to go, how it plans to get there, and how it can ensure survival. [D06244]

The system of future opportunities and [their] threats that are so significant that they could materially impact the enterprise's achievement of its main purpose or even its survival. [D06245]

Risks are events that if they occur can jeopardize the successful completion of the project. Risks should be identified and assessed for probability of occurrence and impact on the project. [D01751]

See Risk Management Budget

See Risk Management Plan

A guide based on high-level activities that identifies key choices that are available. [D05485]

The ability of the product to perform in unexpected situations, i.e. to operate well beyond its set of design assumptions. [D05486]

See Return on Investment

A unit of defined responsibilities that may be assumed by one or more individuals. [D05209]

A function or part performed especially in a particular part or process. [D02995]

A definition of the behavior and responsibilities of an individual, or a set of individuals working together as a team, within the context of a software engineering organization. The worker represents a role played by individuals on a project, and defines how they carry out work. [D04789]

See worker [D04793]

Many aspects of project work are done as a part-time responsibility. All methodologies recognize that the project manager and all other job titles are role definitions where the role is often fulfilled by a person who has other roles to fill simultaneously. [D03942]

Definitions for page R08: 50

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