4 Types of Project Risk - Different Forms of Uncertainty

The video explores the concept of risk and uncertainty, categorizing uncertainties into known knowns, known unknowns, unknown unknowns, and unknown knowns. It discusses how to manage each type, emphasizing probabilistic approaches for known knowns, research for known unknowns, discovery for unknown unknowns, and knowledge management for unknown knowns. Techniques like Monte Carlo simulation and pre mortem are highlighted for effective risk management.

What are the two principal components of risk?

• Politics and society

• Quality and compliance

• Schedule and budget

• Probability and impact

Which category of uncertainty involves risks that we are aware of but lack complete knowledge about?

• Unknown unknowns

• Known unknowns

• Known knowns

• Unknown knowns

What is the technical term for probabilistic risks?

• Latent risks

• Epistemological risks

• Ontological risks

• Alliatory risks

Which method is best suited for managing alliatory risks?

• Horizon scanning

• Monte Carlo simulation

• Pre-mortem analysis

• Storytelling

What is the main goal when dealing with known unknowns?

• To eliminate all risks

• To convert them into unknown knowns

• To ignore them

• To reduce the risk to an irreducible probabilistic component

What term is used to describe events that are completely unexpected and arise from unknown unknowns?

• Black Swans

• White Swans

• Gray Swans

• Golden Swans

What approach helps in accessing hidden knowledge by assuming a project has failed?

• Contingency planning

• Risk assessment

• Pre-mortem analysis

• Post-mortem analysis