Glossary

acceptance: A risk response strategy that accepts the consequences of a risk event should it occur.
accountability: Assuring that the project is completed to the satisfaction of the stakeholders, on time, and within budget.
assumptions: Events or actions believed to be true. Risk assumptions should always be documented.
authority: The ability to make and enforce decisions and to administer consequences and rewards to team members.
avoidance: A risk response strategy that attempts to avoid or eliminate risk events and their impacts.

cardinal scale values: Values expressed as numbers between 0 and 1.0 and referenced in the Qualitative Risk Analysis process.
constraints: Actions or decisions that either restrict or dictate the actions of the project team.
contingency planning: A risk response strategy that involves planning alternatives to deal with the risks should they occur.
contingency reserves: Contingency reserves hold project funds, time, or resources in reserve to offset any unavoidable threats that might occur to project scope, schedule, cost overruns, or quality.
critical success factors: Those elements that must be completed in order for the project to be considered complete.

decision tree analysis: A diagramming method that shows the sequence of interrelated decisions and the expected results of choosing one alternative over another. It s usually used for risk events that impact time or cost.

expected value: An overall risk score derived by multiplying the risk impact value by the risk probability value.

force majeure: Catastrophic risks that are outside the scope of risk management planning...

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Project Manager's Spotlight on Risk Management