RISK 101
An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
What is a risk (PMI definition)?
A hierarchical taxonomy of risk sources — the WBS's cousin.
What is the Risk Breakdown Structure?
The two factors multiplied to produce a risk score.
What are probability and impact?
Probability × impact, expressed in rupees.
What is Expected Monetary Value?
Eliminate the threat outright by changing the plan — the mirror of Exploit.
What is Avoid?
A risk that has already occurred — tracked in a separate log.
What is an issue?
Anonymous, iterative expert questionnaires that defeat seniority bias and groupthink.
What is the Delphi technique?
The probability band that earns a Level 5 "Very High" rating.
What is greater than 70%?
(O + 4M + P) ÷ 6.
What is three-point (PERT) estimating?
Hand a high-risk subsystem to a vendor on fixed price, and pay their premium for it.
What is Transfer?
The acceptable variation around an objective, such as ±5% on schedule.
What is risk tolerance?
Fast, low-effort, built from past programmes — and dangerous alone because it breeds false completeness.
What is checklist analysis?
Why a moderate risk due next month can outrank a severe risk due next year.
What is risk urgency assessment?
Thousands of simulated outcomes yielding an S-curve and an 80%-confidence date.
What is Monte Carlo simulation?
Hand the risk upward, out of project authority — without dropping it from tracking.
What is Escalate?
The standard that calls risk "the effect of uncertainty on objectives" and sits above PMI's project-level view.
What is ISO 31000:2018?
The two prompt-list acronyms used for structured risk scanning.
What are PESTLE and TECOP?
Systematically underestimating the probability of unfavourable events.
What is optimism bias?
Ranks variables by the size of their effect; the longest bars claim management attention.
What is a tornado diagram?
The reserve held at sponsor level for unknown-unknowns.
What is management reserve?
The middle band where risk is permitted only if further reduction isn't practicable, weighing cost against benefit.
What is the tolerable / ALARP region?
The three-part structure every risk description in the register should follow.
What is Cause – Risk Event – Effect?
The pre-scoring check on clarity, reliability, corroboration and bias.
What is risk data quality assessment?
A large-launch option carries a 60% chance of earning ₹50 lakh and a 40% chance of losing ₹20 lakh. A small-launch option carries the same probabilities against +₹20 lakh and −₹5 lakh. The EMV advantage of going large.
22 Lakh
The Case Study 1 response to an ASIC still below TRL-6 at PDR.
What is a parallel FPGA-based fallback design (mitigate)?