FIT2002 Lecture Notes - Lecture 9: Executive Sponsor, Sensitivity Analysis, Influence Diagram
25 Jul 2018
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Document Summary
Opportunity: exploits an issue which can result in an improvement. Timeboxing: focus on one task at a time. Risk management: identifying, analysing and responding to risk throughout the life of a project and in the best interests of meeting project objectives. Risk: uncertainty that can have a negative or positive effect on meeting project objectives. Negative risk: understanding potential problems that might occur in the project and how they might impede project success. Positive risk: risks that result in good things. Risk appetite: degree of uncertainty an entity is willing to take on, in anticipation of a reward. Risk tolerance: the maximum acceptable deviation an entity is willing to accept as the potential impact. Risk utility: the amount of satisfaction or pleasure received from a potential payoff. Known risks: identified risks that can be analysed and managed proactively. Unknown risks: unidentified risks that are analysed and cannot be managed. Risk averse: utility plateaus as risk gets higher.
