ITM 750 Lecture Notes - Lecture 11: Project Risk Management, Project Plan, Risk Aversion

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 750
• Professor: Bharat Shah

Document Summary

Project risk management the art and science of identifying, analyzing, and responding to risk through project life and in best interests of meeting project objectives. Risk an uncertainty that can have a negative or positive effect on meeting project objectives. Cost for risk management should not exceed potential benefits. Risk utility the amount of satisfaction or pleasure received from a potential payoff. Risk-averse when more payoff or money is at stake, a person or organization that is risk- averse gains less satisfaction from risk, or has lower tolerance for risk. Risk-seeking higher tolerance for risk, and satisfaction increases when more payoff is at stake. Risk-neutral achieves a balance between risk and payoff. Known risks describe risks that the project team has identified and analyzed; managed proactively. Unknown risks risks that have not been identified and analyzed, and cannot be managed. Six processes for risk management: planning risk management.