11

Question 1

It includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.

Answer 1

Project Risk Management

Question 2

The process of defining how to conduct risk management activities for a project.

Answer 2

Plan Risk Management

Question 3

The process of identifying individual project risks as well as sources of overall project risk and documenting their characteristics.

Answer 3

Identify Risks

Question 4

The process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics.

Answer 4

Perform Qualitative Risk Analysis

Question 5

The process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives.

Answer 5

Perform Quantitative Risk Analysis

Question 6

The process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks.

Answer 6

Plan Risk Responses

Question 7

The process of implementing agreed-upon risk response plans.

Answer 7

Implement Risk Responses

Question 8

The process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project.

Answer 8

Monitor Risks

Question 9

It’s an uncertain single event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.

Answer 9

Individual project risk

Question 10

It’s the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.

Answer 10

Overall project risk

Question 11

They’re recorded in the risk management plan. They should be expressed as measurable risk thresholds around each project objective. These thresholds will determine the acceptable level of overall project risk exposure, and they are also used to inform the definitions of probability and impacts to be used when assessing and prioritizing individual project risks.

Answer 11

Stakeholder risk appetite

Question 12

Opportunities and threats are represented in a common probability and impact matrix using positive definitions of impact for opportunities and negative impact definitions for threats. Descriptive terms (such as very high, high, medium, low, and very low) or numeric values can be used for probability and impact. Where numeric values are used, these can be multiplied to give a probability-impact score for each risk

Answer 12

Probability and impact matrix

Question 13

It’s a predetermined list of risk categories that might give rise to individual project risks and that could also act as sources of overall project risk. It can be used as a framework to aid the project team in idea generation when using risk identification techniques. For example: TECOP, PESTLE or VUCA.

Answer 13

Prompt Lists

Question 14

TECOP

Answer 14

Technical, Environmental, Commercial, Operational, Political

Question 15

It presents information on sources of overall project risk, together with summary information on identified individual project risks.

Answer 15

Risk Report

Question 16

Captures details of identified individual project risks. The results of Perform Qualitative Risk Analysis, Plan Risk Responses, Implement Risk Responses, and Monitor Risks are recorded in it.

Answer 16

Risk Register

Question 17

The key benefit of this process is that it focuses efforts on high-priority risks.

Answer 17

Perform Qualitative Risk Analysis

Question 18

For each risk who will take responsibility for planning an appropriate risk response and ensuring that it is implemented

Answer 18

Risk Owner

Question 19

Evaluates the degree to which the data about individual project risks is accurate and reliable as a basis for qualitative risk analysis.

Answer 19

Risk data quality assessment

Question 20

Considers the likelihood that a specific risk will occur. Considers the potential effect on one or more project objectives such as schedule, cost, quality, or performance. Impacts will be negative for threats and positive for opportunities

Answer 20

Risk probability and impact assessment

Question 21

It’s a grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs.

Answer 21

Probability and impact matrix

Question 22

Where risks have been categorized using more than two parameters. For example, a bubble chart displays three dimensions of data.

Answer 22

Hierarchical charts

Question 23

The key benefit of this process is that it quantifies overall project risk exposure, and it can also provide additional quantitative risk information to support risk response planning. This process is not required for every project, but where it is used, it is performed throughout the project.

Answer 23

Perform Quantitative Risk Analysis

Question 24

Uncertain duration, cost, or resource requirement for a planned can be represented in the model as a probability distribution. Other sources of uncertainty may also be represented using branches to describe alternative paths through the project.

Answer 24

Representations of Uncertainty

Question 25

Quantitative risk analysis uses a model that simulates the combined effects of individual project risks and other sources of uncertainty to evaluate their potential impact on achieving project objectives. They’re typically performed using a Monte Carlo analysis.

Answer 25

Simulation

Question 26

They’re used to support selection of the best of several alternative courses of action. Alternative paths through the project are shown in branches.

Answer 26

Decision tree analysis

Question 27

They’re graphical aids to decision making under uncertainty. It represents a project or situation within the project as a set of entities, outcomes, and influences, together with the relationships and effects between them.

Answer 27

Influence diagrams

Question 28

The key benefit of this process is that it identifies appropriate ways to address overall project risk and individual project risks. This process also allocates resources and inserts activities into project documents and the project management plan as needed.

Answer 28

Plan Risk Responses

Question 29

It’s appropriate when the project team or the project sponsor agrees that a threat is outside the scope of the project or that the proposed response would exceed the project manager’s authority. These risks are managed at the program level, portfolio level, and not on the project level.

Answer 29

Escalate

Question 30

It’s when the project team acts to eliminate the threat or protect the project from its impact. It may involve changing some aspect of the project management plan or changing the objective that is in jeopardy in order to eliminate the threat entirely, reducing its probability of occurrence to zero.

Answer 30

Avoid

Question 31

Involves shifting ownership of a threat to a third party to manage the risk and to bear the impact if the threat occurs. It often involves payment of a risk premium to the party taking on the threat.

Answer 31

Transfer

Question 32

An action is taken to reduce the probability of occurrence and/or impact of a threat.

Answer 32

Mitigate

Question 33

It acknowledges the existence of a threat, but no proactive action is taken.

Answer 33

Accept

Question 34

This strategy may be selected for high-priority opportunities where the organization wants to ensure that the opportunity is realized.

Answer 34

Exploit

Question 35

The key benefit of this process is that it ensures that agreed-upon risk responses are executed as planned in order to address overall project risk exposure, minimize individual project threats, and maximize individual project opportunities.

Answer 35

Implement Risk Responses

Question 36

The key benefit of this process is that it enables project decisions to be based on current information about overall project risk exposure and individual project risks.

Answer 36

Monitor Risks