Acceptance: e risk response strategy of acknowledgment and lack
of a proactive response. Passive risk acceptance involves tak-
ing no action and tolerating any potential outcomes. Active
risk acceptance involves either setting aside contingency funds
or establishing contingency plans (contingent responses) that
will be applied only if the risk event actually comes to pass.
See also avoidance, mitigation, and transference.
Activity: A component of project work that may or may not be subdi-
vided into other elements (such as tasks). See also task.
Activity duration: e planned time associated with accomplishing a
specic element of project work (based on work and resource
Activity-on-arrow: See arrow diagramming method.
Activity-on-node: See precedence diagramming method.
Actual cost: Cost incurred in the execution of a project and/or its
tasks as evidence by generally accepted accounting principles.
Analogy-based estimating: Estimating practice that draws on ele-
ments, components or aspects of one project (and the costs
associated therewith) in determining the cost of similar ele-
ments, components or aspects in a project under consideration.
Analogy comparisons: Risk identication tool that draws on ele-
ments, components or aspects of one project (and the risks
that were associated therewith) in determining whether simi-
lar elements, components or aspects of a project under con-
sideration may or may not drive similar risk events. See also
Lessons learned.
Appetite: e degree to which an organization or individual feels
compelled to exert inuence over risk events.
Arrow: e activity component of the arrow diagramming method
(ADM). In ADM, the arrow represents the work to be per-
formed, initiated from a circle (representing the beginning of
the activity) and terminated into a circle (representing the end
milestone of the activity, which may also be the start mile-
stone of the next activity in sequence).
Arrow diagramming method (ADM): Network diagramming
practice using arrows to represent activities graphically,
with arrows initiated from a circle (representing the begin-
ning milestone of the activity) and terminated into a circle
(representing the end milestone of the activity, which may
also be the start milestone of the next activity in sequence).
Employing only nish-to-start relationships, the diagram
progresses from left to right, illustrating all dependencies
among the project activities.
Assumption: A belief (not yet validated) held regarding any aspect
of a project or project performance. Assumptions are applied
for making decisions in an environment where information is
Assumptions analysis: A review of project assumptions either to
validate them or to determine whether a project (or project
organization can withstand the impact if the assumptions
prove invalid.
Attitude: e degree to which an individual will act on risk appetites
(either in accordance or in conict with the appetites).
Audit: A formal, methodologically driven review of any aspect of
a project. Often modied by a specic adjective (such as in
schedule audit, earned value audit, nancial audit, and so
forth), audits focus on ensuring a comprehensive review of the
practices under consideration.
Avoidance: e risk response strategy that creates an environ-
ment where the organization and/or the project is no longer

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