Risk Management Action Plan

What is the first step in risk management?

• Develop a risk response plan

• Assess potential impacts

• Monitor risk outcomes

• Identify risks

How can risks be identified in a project?

• Increasing team size without assessment

• Risks can be identified through brainstorming, expert interviews, SWOT analysis, risk checklists, and stakeholder engagement.

• Conducting a financial audit

• Implementing a new software system

What tools can be used for risk analysis?

• Flowcharts

• SWOT analysis, risk matrices, Monte Carlo simulations, decision trees, @RISK, RiskWatch

• Cost-benefit analysis

• Gantt charts

What is the purpose of risk evaluation?

• The purpose of risk evaluation is to assess and prioritize risks to inform decision-making.

• To ignore potential threats and focus on opportunities.

• To create new risks for evaluation.

• To eliminate all risks completely.

How do you prioritize risks after evaluation?

• Evaluate risks based on team preferences

• Focus only on low-impact risks

• Ignore all risks and proceed with the project

• Assess likelihood and impact, categorize using a risk matrix, prioritize high risks first.

What is a risk mitigation plan?

• A risk mitigation plan is a strategy to reduce or eliminate risks in a project or organization.

• A plan to increase project risks.

• A strategy for team building and collaboration.

• A document outlining project goals.

What are some common strategies for risk mitigation?

• Risk elimination

• Risk transfer

• Risk exploitation

• Common strategies for risk mitigation include risk avoidance, risk reduction, risk sharing, and risk acceptance.

How often should risks be monitored?

• Once a year during the annual audit.

• After a major incident occurs.

• Only when a new project starts.

• Continuously, with formal reviews at regular intervals.

What indicators can signal a change in risk status?

• Employee turnover rates

• Company profits

• Weather patterns

• Market conditions, regulatory changes, technology trends, consumer behavior shifts, geopolitical events.

What role does communication play in risk management?

• Communication is solely for team building and has no impact on risk assessment.

• Communication plays a critical role in identifying, assessing, and mitigating risks in risk management.

• Communication is irrelevant to risk management.

• Communication only helps in the final decision-making process.