6.8. Key Terms
Key Terms
- Act: A federal, provincial, or territorial law that sets out the broad legal framework around occupational health and safety in each jurisdiction.
- Contingency Plans: The project risk plan balances the investment of the mitigation against the benefit for the project. The project team often develops an alternative method for accomplishing a project goal when a risk event has been identified that may frustrate the accomplishment of that goal.
- Regulation: Determines how the general principles of the Act will be applied and enforced.
- Risk is potential loss or harm (Canadian Tourism Commission [CTC], 2003a). This could be a financial loss, damage to property, or injury to workers or guests.
- Risk assessment includes both the identification of potential risks and the evaluation of the possible impact of the risk. A risk mitigation plan is designed to eliminate or minimize the impact of the risk events—occurrences that hurt the project.
- Risk Avoidance: This usually involves developing an alternative strategy that has a higher probability of success but usually at a higher cost associated with accomplishing a project task.
- Risk Management: The process of identifying, quantifying, and managing the risks that an organization faces.
- Risk Reduction: This is an investment of funds to reduce the risk on a project. On international projects, companies will often purchase the guarantee of a currency rate to reduce the risk associated with fluctuations in the currency exchange rate.
- Risk Sharing: Involves partnering with others to share responsibility for risky activities. Or, hiring someone else to take on that part of the project.
- Risk Transfer: A risk reduction method that shifts the risk from the project to another party. The purchase of insurance on certain items is a risk-transfer method.
“9.8. Key Terms” from Essentials of Project Management by Adam Farag is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted. Modifications: added risk, act, regulation.
