Hands-on-lab: Create a risk matrix

My risk matrix of my project

 Control questions

1. List the risk management tools?

2. Explain the difference between secondary and residual risks.

3. Risk audit helps to identify what?

4. On the basis of what secondary risk is identified?

5. Describe the main categories of risk response.

6. Describe the existing options for capitalizing on opportunities.

 Answers
• 1)Risk management tools:
Risk Register: Records and tracks risks.
Risk Assessment Matrix: Evaluates and prioritizes risks.
SWOT Analysis: Identifies strengths, weaknesses, opportunities, and threats.
Monte Carlo Simulation: Analyzes risk impact statistically.
Decision Tree Analysis: Visualizes decisions under uncertainty.
• 2)Secondary vs. residual risks:
Secondary risks: Arise from implementing risk responses.
Residual risks: Remain after implementing risk responses.
• 3)Risk audit identifies:
Effectiveness of risk management.
Accuracy of risk responses.
Overall risk management plan performance.
• 4)Secondary risks are identified based on:
Changes made to mitigate primary risks.
• 5)Main categories of risk response:
Avoidance: Eliminate the risk.
Mitigation: Reduce the probability or impact.
Transfer: Shift the risk to another party.
Acceptance: Accept the risk and its consequences.
Exploitation: Take advantage of opportunities from risks.
• 6)Options for capitalizing on opportunities:
Enhancing: Increase the probability or impact.
Sharing: Collaborate to maximize benefits.
Accepting: Accept the opportunity without further action.
Exploiting: Take immediate action to realize benefits.
Thank you!