What are the known unknowns and the unknown unknowns of the project? The terms “known unknowns” and “unknown unknowns” are often used in project management and strategic planning circles. Known unknowns refers to “risks you are aware of, such as canceled flights ” Unknown unknowns are risks that come from situations that are so unexpected that they would not be considered.
What is the concept of the known of the unknown and the unknown of the unknown in risk management? When considering risk, known knowns are those matters which you are fully aware of and can plan for in advance. Known unknowns are those risks which you ‘know that you don’t know’ – risks that you know exist, but can’t accurately quantify their potential impact.
What is known unknown in project management? Known Unknowns are assumptions that we haven’t or can’t validate. Most assumptions identified during project planning start in this category. Assumptions that can become known knowns at some point in the future, but not now. Assumptions that can’t become known knowns because we can’t control them.
What risks are examples of unknown unknowns? Let’s explore a few examples of known unknowns that we typically experience in a CTRM or Risk Advisory project:
Changes to the business.
Loss of key resources.
Acts of God.
Have a Plan B ready.
What are the known unknowns and the unknown unknowns of the project? – Related Questions
What is the difference between known unknown and unknown unknown risks?
To differentiate between the known and unknown risks, the project managers are encouraged to prioritize the project objectives. Known risks can be identified, analyzed & planned in advance whereas unknown risks are unable to anticipate and describe.
What are risks and mitigations?
Risk mitigation involves taking action to reduce an organization’s exposure to potential risks and reduce the likelihood that those risks will happen again. Ignoring those potential risks and not mitigating them could spell disaster for any company.
Who said there are known unknowns?
“There are known knowns” is a phrase from a response United States Secretary of Defense Donald Rumsfeld gave to a question at a U.S. Department of Defense (DoD) news briefing on , about the lack of evidence linking the government of Iraq with the supply of weapons of mass destruction to terrorist
What is a risk to a project?
Project risk is defined by PMI as, “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.” Risk: The likelihood that a project will fail to meet its objectives. A risk: A single action, event or hardware component that contributes to an effort’s “Risk.”
How do you handle an unknown risk?
The paper lists five emerging strategies for coping with unknown risks:
Use “reverse stress testing” to identify vulnerabilities.
Manage crises as if they occur every day.
Enable a company-wide response to emerging threats.
Integrate risk management and strategic planning.
What is known known category?
A known known is information that is fully studied and well understood, so that an individual or organization can have confidence in its comprehension and relevance. The term known known is one of four categories of information, which also include known unknowns, unknown knowns and unknown unknowns.
What is more dangerous for decision making known unknowns or unknown unknowns?
Unknown unknowns are the most dangerous types of risks. These are risks which the company doesn’t even know that they don’t know. The danger here is that since the organization is unaware of the existence of the risk, it cannot manage the risk, which can result in disaster.
How can companies manage unknown and unknowable risks?
To manage unknowable risks, companies should ensure business processes remain flexible, ensuring variable costs and diversifying across products and markets whenever possible.
How do you plan for the unknown?
Dealing with uncertainty – how to plan for the unknown
Keep up to date with developments without losing perspective.
Stick to the facts.
Prepare for multiple outcomes.
Be flexible and open to opportunity.
Know your numbers.
Build on your relationships.
What are the 3 types of risks?
Risk and Types of Risks:
What is the risk classification?
Risk classification is the practice of grouping people together according to the risks they present, including similarities in costs for potential losses or damages, how frequently the risks occur, and whether steps are taken to reduce or eliminate the risks.
Can unknown risks be managed proactively?
Unknown risks can be managed proactively. Contingency plans are predefined actions that the project team will take if an identified risk event occurs. Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
What are the 4 types of risk?
There are many ways to categorize a company’s financial risks. One approach for this is provided by separating financial risk into four broad categories: market risk, credit risk, liquidity risk, and operational risk.
When should risks be avoided?
Risk is avoided when the organization refuses to accept it. The exposure is not permitted to come into existence. This is accomplished by simply not engaging in the action that gives rise to risk. If you do not want to risk losing your savings in a hazardous venture, then pick one where there is less risk.
What are the 4 risk strategies?
In the world of risk management, there are four main strategies:
What is known Cannot be unknown?
“For once a thing is known, it can never be unknown. It can only be forgotten.”
What you dont know quotes?
“There are known knowns, things we know that we know; and there are known unknowns, things that we know we don’t know. But there are also unknown unknowns, things we do not know we don’t know.”