- Risk management planning
- Risk identification
- Qualitative risk analysis
- Quantitative risk analysis
- Risk response planning
Ultimate decision on how to deal with risk is based part on Project Manager's tolerance for risk this is measured by Utility function.
Decision Tree Analysis > Solving the decision tree indicates which decision yields the greatest expected value to the decision-maker when all the uncertain implications, costs, rewards and subsequent decisions are quantified.
Active Acceptance may include developing a contingency plan to execute, should a risk occur.
Reports commonly used to monitor and control risks include Issues Logs, Action-item Lists, Jeopardy Warnings and Escalation Notices.
Monte Carlo analysis can identify the points of schedule risk.
This documentation is personal study notes I prepared during my PMP certification study. The source for this study notes is partially from PMBOK 2000, PMP Exam Cram 2, and www.pmstudy.com. I only take notes on knowledge areas that I thought was useful for me. In the real exam, the contents covered are much broader and more difficult than any reference books. So I think real life experience is very important.