PRM Unit 1 Notes
PRM Unit 1 Notes
PRM Unit 1 Notes
- This refers to someone who actively seeks out opportunities with higher risk in
exchange for potentially higher returns.
Risk neutral
- This describes individuals or entities who are indifferent between taking risks and
avoiding them.
Risk tolerant
- These are individuals or entities who are willing to accept a certain level of risk in their
investments in exchange for potential higher returns
Unit 2
Purpose and Objectives of Plan Project Risk Management
- To develop overall risk management strategy for the project.
- To decide how the risk management process will be executed.
- To integrate project risk management with all project management activities.
Critical Success Factors for the Plan Project Risk Management Process
- Acceptance by the stakeholders
- Identification of bias and correcting it
- Alignment with internal and external constraints and priorities
- Balance between cost or efforts and benefits
- Completeness to the needs of the risk management process
External
Market
- Customer acceptance
- Profit potential
Environmental Impact
- Pollution Risk
- Community Protests
Internal
Technical
- Performance
Organisational
- Funding safety
- Skilled Resources