ITM750_Chap11_Risk_Management

An uncertainty that can have a negative or positive effect on meeting objectives

Degree of uncertainty an entity is willing to take on, in anticipation of a reward

Maximum acceptable deviation an entity Is willing to accept on the project or business objectives as the potential impact

Amount of satisfaction or pleasure received from a potential payoff.

Person achieves a balance between risk and payoff

Person has higher tolerance for risk and their satisfaction increases when more payoff is at stake

Utility rises at a decreasing rate of risk

Risks that the project team has identified and analyzed