Risk Analysis Practice Exam

Risk Analysis

Risk Analysis professionals have the ability to identify, analyse, and evaluate project risks, analyse threats, and work towards it. The demand for risk analysts is increasing day by day due to the increase in competition in the market. They also work towards finding the impact of the risk with the help of the available data. Moreover, they evaluate financial documents, economic conditions and also work on MS Office.

Who should take this exam?

• Anyone with knowledge of risk management

• Project managers with a master’s in Project risk management

Skills Required

• Analytical risk assessment skills

• Communication skills

• Problem-solving 

• Strategic thinking

• Financial knowledge and skills

Career Prospects

• Risk Analyst

• Insurance Analyst

• Loss Control Representative

• Risk Consultant

• Risk Control Consultant

Table of Content

The Risk Analysis Exam covers the following topics - 

Risk strategy and planning

• Develop suitable risk assessment processes and tools as per the nature of the project. It helps in quantifying the stakeholder’s risk tolerance towards any risk and determine the risk threshold for the project.

• Update risk policies and procedures using other important project documents such as lessons learned register and risk audit reports.

• Develop and formulate a project risk strategy that is by the goals and objectives of the project. It helps in developing a risk management plan.

• Produce a risk management plan that can provide a basis for effective risk management processes. This consults project information, external factors, stakeholder expectations, and organizational policies.

• Establish evaluation criteria for risk management, which is based on project baselines and objectives.

Stakeholder engagement

• Promote a common understanding of the importance of risk management and coming up with a risk management plan in the initial phase of the project. 

• Interact and coach stakeholders regarding risk principles and processes.

• Train the team members for the effective implementation of risk processes.

• Use different tools and techniques to assess stakeholders’ project risk tolerance.

• Identify stakeholders’ attitudes towards risks to come up with timely strategies.

• Engage stakeholders to form a consensus over risk priorities.

• Share risk-related recommendations with the stakeholders through effective means of communication. It improves risk response and helps in its execution.

• Decide the risk ownership along with stakeholders to achieve effective risk-based decisions.

• Develop a proper means for communication of all the risk related information in time to enhance transparency and trust among team members and project stakeholders.

Risk process facilitation

• Applying various tools and techniques to identify the risk tolerance factor as well as determine all the critical risk levels.

• Identify the risks to understand and determine the risk exposure of the project. This task is of great importance for both project team members as well as project stakeholders.

• Apply different qualitative and quantitative methods for proper risk prioritization and planning for future ease.

• Develop a risk response strategy, and suitable actions based on the information determine above.

• Formulate a project contingency reserve that is based on risk exposure.

• Provide this data to cost and schedule managers to make up the budget and project schedule accordingly.

• Allow for experimentation that helps in validating the potential of risk response and evaluate the chances of the project’s success with the respective risk control strategy.

Risk monitoring and reporting

• Document and update project risk information periodically. It helps in maintaining complete information that can be utilized at any moment.

• Coordinate with the project manager to integrate risk management processes and strategies throughout the project.

• Create reports that include the analysis of risk potentials and responses based on evaluation metrics as per risk and communication management plan.

• Monitor risk response metrics by analyzing all the important project activities.

• Analyze risk process performance to come up with risk process improvements.

• Keep the risk management plan updated so that it conforms to all the internal and external factors that influence or might influence the process.

• Constitute the risk lessons learned in the risk management plan, risk register risk audit, risk process performance reports, and all the other related important project documents accordingly so that you can come up with improvements. It helps a lot in future risk planning.

Perform specialized risk analysis

• Use advanced quantitative activities and specialized qualitative approaches to draw an estimate of overall risk exposure of the project.

• Analyze the risk data by using swot (strengths-weakness-opportunities-threats) analysis. Apply this approach on the risk strategy and process in order to recommend the process improvements for better and efficient results.

• Perform specialized risk analysis using advanced tools and techniques.