List of Exercises

Exercise 1-1. Managing Important Risks

Exercise 1-2. Your Current Risk Management Process

Exercise 1-3. What You Spend on Risk Management

Exercise 2-1. Risk Identification Practice

Exercise 2-2. SWOT Analysis

Exercise 3-1. Cause-and-Effect Diagram

Think About It!

Think About It!

Exercise 4-1. Establishing Risk Thresholds

Exercise 4-2. Ranking Risks

Exercise 4-3. Prepare a Risk Information Sheet

Exercise 5-1. Probability Practice

Exercise 5-2. Calculate a Standard Deviation

Exercise 6-1. Greater Accident Variation

Exercise 6-2. Premium Income and Claims Outlays

Exercise 6-3. Pricing Risk

Exercise 7-1. Deterministic or Probabilistic?

Exercise 7-2. Calculating Expected Monetary Value (EMV)

Think About It! (Decision Tree)

Exercise 7-3. Decision Tree

Exercise 7-4. Sensitivity Analysis

Exercise 8-1. Critical Path

Exercise 8-2. Scheduling with PERT Estimates

Exercise 8-3. Calculating Standard Deviation for a Path or Network

Exercise 9-1. Risk Response Planning

Exercise 9-2. Residual and Secondary Risk

Exercise 9-3. Types of Risk Response

Think About It!

Think About It!

Think About It!

Exercise 10-1. Earned Value Method (EVM) Performance Index Ratios

Think About It!

List of Exhibits

Exhibit 2-1. Risk Register Categories

Exhibit 2-2. Questioning Risks

Exhibit 2-3. Sample Risk from a Requirements Document

Exhibit 2-4. Sample Risk from a Project Charter or Statement of Work

Exhibit 2-5. Sample Risk from a Work Breakdown Structure (WBS) Work Package

Exhibit 2-6. Common Types of Documentation for Risk Identification

Exhibit 2-7. Brainstorming Rules

Exhibit 2-8. Negative Brainstorming

Exhibit 2-9. Cause and Effect Diagram

Exhibit 3-1. Risk Triage Process

Exhibit 3-2. Cause-and-Effect Diagram for Impact Analysis

Exhibit 3-3. Probability Boosters

Exhibit 3-4. Risk Triage Categories and Next Steps

Exhibit 4-1. Levels of knowledge

Exhibit 4-2. Risk Matrix

Exhibit 4-3. Rating Scale

Exhibit 4-4. Total Risk Exposure

Exhibit 4-5. Measuring Total Project Risk

Exhibit 4-6. Risk Information Sheet

Exhibit 5-1. Basic Probabilities with One Six-Sided Die

Exhibit 5-2. Basic Probabilities Rolling One Die Twice

Exhibit 5-3. Mathematical Descriptions of Probability

Exhibit 5-4. Sum of Two Dice

Exhibit 5-5. Distribution of Outcomes Rolling Two Dice

Exhibit 5-6. Normal Distribution

Exhibit 5-7. Analyzing a Normal Distribution

Exhibit 5-8. Analyzing a Skewed Distribution

Exhibit 5-9. Flat and Narrow Normal Distributions

Exhibit 5-10. Standard Deviation

Exhibit 5-11. Calculating Standard Deviations

Exhibit 5-12. Percent of Cases within 1, 2, and 3 Standard Deviations in a Normal Distribution

Exhibit 6-1. Assumptions for Insurance Case Study

Exhibit 6-2. Effect of Premium Change on Net Income (Loss)

Exhibit 6-3. Recommended Risk Price

Exhibit 6-4. Financial Results over Eleven Years

Exhibit 7-1. Cost-Benefit Analysis

Exhibit 7-2. Expected Monetary Value (EMV)

Exhibit 7-3. Decision Tree

Exhibit 7-4. Sensitivity Analysis

Exhibit 8-1. Arrow vs. Node

Exhibit 8-2. Network Diagram

Exhibit 8-3. Forward Pass

Exhibit 8-4. Backward Pass

Exhibit 8-5. Critical Path and Float

Exhibit 8-6. Types of Schedule Risk

Exhibit 8-7. Historical Times for a Common Task

Exhibit 8-8. PERT Formulas

Exhibit 8-9. Confidence Levels

Exhibit 8-10. Monte Carlo Input Screen

Exhibit 8-11. Monte Carlo Simulation Results

Exhibit 9-1. Six Tips for Risk Response Planning

Exhibit 9-2. Questions That Shape Risk Responses

Exhibit 10-1. Organizational Considerations for Risk Management Policy

Exhibit 10-2. Earned Value Method (EVM) Performance Index Ratios

Exhibit 10-3. Sample Risk Response Action Plans