Risk Management in Process Improvement Flashcards
7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management in Process Improvement flashcards as text
Which of the following is a qualitative risk assessment technique used in process improvement?
Answer: Risk probability-impact matrix
A risk probability-impact matrix is a qualitative technique that categorizes risks using descriptive scales to assess likelihood and consequence levels.
What is the primary goal of a 'risk response plan' in a process improvement project?
Answer: To define specific actions that will be taken to address identified risks
A risk response plan defines specific actions, owners, timelines, and resources to address identified risks using strategies such as avoidance, mitigation, transfer, or acceptance.
Which risk response strategy involves taking actions to reduce the probability or impact of a risk?
Answer: Risk mitigation
Risk mitigation involves implementing actions to reduce the probability of a risk occurring or to minimize its impact if it does occur.
When should risk management activities be performed during a process improvement project?
Answer: Continuously throughout the entire project lifecycle
Risk management must be performed continuously throughout the project lifecycle because new risks can emerge at any phase and existing risks require ongoing monitoring and reassessment.
In process risk management, what is a 'contingency plan'?
Answer: A pre-defined response plan activated when a specific risk event occurs
A contingency plan is a pre-defined set of actions to be executed when a specific risk event materializes, ensuring a rapid, organized, and effective response.
What does 'risk quantification' involve in the context of process improvement?
Answer: Assigning numerical values to assess the potential financial or operational impact of risks
Risk quantification involves assigning numerical values to probability and impact to calculate the potential financial or operational exposure from each identified risk.
Which tool visually displays the relative priority of risks based on their probability and impact scores?
Answer: Risk heat map
A risk heat map displays risks in a color-coded matrix based on probability and impact scores, making it easy to visually identify and prioritize the highest-priority risks.