PMI-RMP key terms

The document that describes how risk management activities will be structured, funded, scheduled, and performed on a project, including roles, methodology, budgeting, timing, and risk categories.

The amount and type of risk an organization or project is willing to pursue or retain in order to achieve its objectives, usually expressed in broad, high-level terms.

The degree, amount, or variance in risk an organization or stakeholder is willing to accept for a specific objective, often expressed as a measurable range.

A specific measurable level of risk exposure above which the organization will not accept the risk and action must be taken, such as escalation or implementing a response.

The chosen response of an individual or group to a situation involving uncertainty, shaped by experience, perception, and tolerance, which influences how risks are identified and prioritized.

A hierarchical representation of potential sources of risk, organized by category, that helps a team identify and structure risks consistently across the project.

Time or money set aside in the project budget or schedule to address identified risks that have been accepted and for which a response plan exists.

A process of identifying stakeholders and assessing their interests, influence, expectations, and potential impact on the project, used to plan engagement and risk communication.

A plan describing how risk information will be shared with stakeholders, including what will be reported, to whom, when, in what format, and by whom.

The subjective interpretation and judgment an individual or group makes about the likelihood and severity of a risk, influenced by experience, values, and biases.

The shared values, beliefs, and behaviors within an organization that shape how people identify, discuss, and act on risk and uncertainty.

A designated person who promotes risk management practices, supports risk owners, and helps keep attention on risk identification and response across the project or organization.

A document that records identified risks, their causes, potential responses, owners, and current status, serving as the central repository for risk information throughout the project.

A structured description of a risk in cause-event-effect format, stating the triggering cause, the uncertain event, and the potential consequence for project objectives.

A group technique used to generate a broad list of risks by encouraging free-flowing ideas from participants without initial criticism or evaluation.

An anonymous, iterative technique in which experts answer questionnaires, receive summarized feedback, and revise their views until consensus emerges, reducing bias from dominant personalities.

An analysis of strengths, weaknesses, opportunities, and threats that helps a team identify internal and external risks that could affect project or organizational objectives.

A technique that examines documented assumptions and constraints to identify which ones are uncertain or invalid and could create risks if they fail.

A technique used to find the fundamental reason a risk or problem exists so that responses can address the underlying cause rather than only a surface symptom.

A process of prioritizing identified risks by assessing their probability of occurrence and impact on objectives, using defined rating scales and subjective judgment.

A process of numerically analyzing the combined effect of identified risks and other sources of uncertainty on project objectives, often using simulation and modeling.

A grid that combines likelihood and impact ratings for each risk to assign a priority level and guide which risks need further analysis or response.

A calculation that multiplies the probability of a risk by its financial impact to express the average expected consequence, used to compare alternatives and size reserves.

A modeling technique that runs many randomized trials of cost or schedule inputs, including risk ranges, to produce a probability distribution of possible project outcomes.

A technique that tests how variation in one uncertain input at a time affects project outcomes, often shown in a tornado diagram, to reveal the most influential risks.

A diagramming method that maps choices, uncertain events, and their probabilities and payoffs to calculate expected values and compare decision options.

The person assigned accountability for monitoring a specific risk, selecting and implementing the response, and ensuring the risk is managed throughout its life cycle.

A documented set of actions, owners, resources, and timing for addressing each prioritized risk, including the selected strategy and any contingency measures.

Negative risk responses used to deal with threats: avoid by removing the risk, mitigate by reducing probability or impact, transfer by shifting financial consequence, and accept by acknowledging the risk.

Positive risk responses used to capture favorable uncertainty: exploit by ensuring the opportunity occurs, enhance by raising its probability or impact, and share by allocating ownership to a capable third party.

A preplanned response executed only if a specific trigger condition occurs, often called a contingency plan, with defined activation criteria and assigned owner.

A backup response implemented when the primary response is insufficient or fails, typically prepared for an accepted risk with a known contingency.

A new risk that arises as a direct result of implementing a risk response, which must be identified and managed alongside the original risk.

The remaining risk exposure that persists after a response has been implemented, which must be evaluated to decide whether further action is needed.

An unplanned response to a risk that has occurred and was not covered by a contingency plan, developed quickly to limit the impact.

A leading metric that provides early warning that a risk is becoming more likely or severe, enabling proactive monitoring and timely response.

A structured review of the effectiveness of risk management processes and responses, often performed by an independent party, to identify improvements and verify compliance.

A periodic activity to reassess identified risks, identify new risks, evaluate response effectiveness, and update the risk register and risk report.

A monitoring technique that compares remaining contingency and management reserves with the risk exposure remaining on the project to determine whether reserves are adequate.

A document that summarizes overall project risk exposure, key individual risks, response status, and trends for stakeholders, often supported by a risk dashboard.