Professional Study Notes

Project Risk Management includes all the processes involved in risk identification, regulation, and mitigation on a project. The objective is to increase the likelihood of positive risks (opportunities) and decrease the likelihood of negative risks (threats).  Here are some key concepts for this Knowledge Area: §   Uncertainty  – Uncertainty is a lack of knowledge about an event that reduces confidence in conclusions drawn from the data §   Risk factors  – When looking at risks, one should determine o     The probability that it will occur (what) o     The range of possible outcomes (impact and amount at stake) o     Expected time (when) in the project life cycle o     The anticipated frequency of risk events from the source (how often) §   Risk adverse  – Someone who does not want to take risks §   Risk tolerance  – How much risk someone can tolerate/withstand §   Risk threshold  – The risk threshold determines at which point the risk becomes unacceptable to stakeholders §   Risk ap

Procurement is the formal processes many organizations follow obtain goods and services. Project Procurement Management is the process of selecting, monitoring and closing vendor contracts. The processes with the Procurement Knowledge Area are: ·         Plan Procurement Management ·         Conduct Procurement ·         Control Procurement Key Concepts There are many names for procurement documents, such as Request for Proposals (RFP), Invitation for Big (IFB), and Request for Quotation (RFQ ). Contract – A mutually binding agreement that obligates the seller to provide something of value (e.g. product or service) and the buyer to provide monetary compensation. The seller can also be referred to as: contractor, subcontractor, vendor, supplier, or service provider During the procurement lifecycle, the seller wears different hats. At the beginning, the seller is a bidder trying to win the contract. When they are selected, they become the selected source .