Risk Assessment & Mitigation Flashcards

What is the FIRST step in the risk management process for a CPSM professional?

Answer: Identifying potential risks through systematic analysis of all project and operational areas

Risk identification is the essential first step, requiring systematic analysis to catalog all potential risks before they can be assessed and managed.

How does a CPSM professional prioritize identified risks?

Answer: By assessing the probability of occurrence and potential impact on objectives

Risk prioritization uses probability and impact assessment to focus resources on the risks most likely to significantly affect organizational objectives.

What is a risk mitigation strategy in CPSM practice?

Answer: A planned approach to reduce the probability or impact of an identified risk

Risk mitigation strategies are planned approaches designed to reduce either the likelihood of a risk occurring or its potential impact if it does occur.

When should a CPSM professional update the risk register?

Answer: Continuously throughout the project lifecycle as new risks emerge or existing risks change

Risk registers should be living documents updated continuously as new risks are identified, existing risks change, and risk responses are implemented.

What is a contingency plan in CPSM risk management?

Answer: A pre-defined response plan activated when a specific risk event occurs

Contingency plans are pre-defined response strategies ready to be activated when specific risk events occur, enabling faster and more effective responses.

How does risk tolerance affect decision-making in CPSM?

Answer: It defines the acceptable level of risk the organization is willing to accept in pursuit of objectives

Risk tolerance establishes boundaries for acceptable risk levels, guiding decision-making by defining how much uncertainty the organization will accept.