11. Risk

Question 1

What is the process of risk managment?

Answer 1

• Plan risk managment
• Idnetify risks kgh
• Perform qualitative risk anaysis
• Perform qantitative risk analysis
• Plan risk responses
• Control risks

Question 2

What is the key output of the plan risk mgt process?

Answer 2

Risk mgt plan

Question 3

What is the key output of the indentify risk process?

Answer 3

Risk register

Question 4

What key output of the perform qualitative risk analysis process are added to the risk register?

Answer 4

• Risk ranking for the project
• Prioritized risks and their probability and impact rating
• Risks grouped by category
• List of risks requiring additional analysis and response
• list of risks requiring analysis the near term
• Watch list of noncritical risks

Question 5

What key output of the perform quantitative risk analysis process are added to the risk register?

Answer 5

• prioritized list of quantified risks
• initial amount of contingency time and cost reserves needed
• possible realistic and achievable completion date and project cost
• Quantified probability of meeting project objectives
• Trend in quantitative risk analysis

Question 6

What key outputs of the plan risk responses process are added to the risk register?

Answer 6

• Residual risks
• contingency plan
• fallback plans
• risk owners
• security risks
• risk triggers
• contacts
• reserve for time and cost

Question 7

What are the key output of the control risks process?

Answer 7

• Work performance information
• risk register update
• change requests
• update to the project mgt plan and project documents
• update to organizational process assets

Question 8

What key outputs of the control risks process are dded to the risk register?

Answer 8

• outcomes of risk assessments and risk audits
• results of implemented risk responses
• updates to previous part of the risk mgt
• closing of irks that are no longer applicable
• details of what happened wien risks occurred
  lessons learned

Question 9

What is a risk?

Answer 9

a future occurrence that may or many not happen that can have a positive or negative impact on the project

Question 10

What are the four key factors that need to be determined for each risk

Answer 10

• probability
• impact
• timing
• frequency

Question 11

A person who is risk averse is:

Answer 11

unwilling to take risks

Question 12

Define risk appetite, risk tolerance, and risk threshold

Answer 12

Risk appetite; a general, high-level description of the acceptable level of risks

• risk tolerance: a measurable amount of acceptable risks
• Risk threshold: the specific point at which risk become unacceptable

Question 13

What are the inputs of the risk mgt process?

Answer 13

• project background info and other organizational process assets
• enterprise environmental factors
• project charter, network diagram, and other project documents
• project mgt plan (including scope baseline and knowledge area plans)
• Time and cost estimates
• procurements documents
• stakeholder register
• risk register
• work performance data and reposts

Question 14

What are some examples of risks?

Answer 14

• technical
• project mgt
• schedule
• cost
• quality
• scope
• resources
• customer satisfaction

Question 15

what are some examples of risk identifications techniques?

Answer 15

• documentation reviews
• information gathering techniques
• SWOT analysis
• Checklist analysis
• Assumptions analysis
• Diagramming techniques

Question 16

What are risk triggers

Answer 16

Early warning signs that a risk event has occurred or is about to occur

that lst risk owners know when take action

Question 17

What is assumptions analysis?

When is it done?

Answer 17

Assessing the assumptions made on the project and determining whether they are valid

During identify risks

Question 18

What is risk data quality assessment?

When is it done?

Answer 18

Determining how accurate, reliable, and well understood the risk information is

During perform qualitative risk analysis

Question 19

What is a probability and impact matrix?

Answer 19

The company’s standard rating system to promote a common understanding of what each risk rating means

Question 20

What is sensitivity analysis?

Answer 20

A technique to analyze and compare the potential impact of identified risks.

Question 21

What is the formula for expect monetary value?

Answer 21

probability times impact

EMV = P * I

Question 22

What is a decision tree?

Answer 22

A model of a decision to be made that include the probabilities and impacts of future events

Question 23

Who is the risk owners

?

Answer 23

The persons assigned to develop and execute risk responses for a critical risks

Question 24

What are the possible risk response strategies for threats

Answer 24

• Avoid: eliminate the threat by eliminating the cause
• Mitigate: reduce the probability or impact of the threat
• Transfer: Make another party responsible for the risk (outsourcing, insurance, bonds, guarantees)
• Accept:
• • passive acceptance: do nothing; if it happens, it happens
• • active acceptance: develop contingency plan in advance

Question 25

What are the possible risk response strategies for opportunities?

Answer 25

• Exploit: make sure the opportunity occurs
• Enhance: increase probability positive impact of the risk event
• Share: allocate full or partial ownership of the opportunity to a third party
• Accept: do nothing; if it happens, it happens

Question 26

What is residual risks?

Answer 26

Risks that remain after risk response planning

Question 27

What are secondary risks

Answer 27

new risks created by the implementation of risk response strategies

Question 28

How does buying insurance related to risk planning?

Answer 28

It exchange an unknown cost impact of known risk for a known cost impact

it’s a method to decrease a project risk

Question 29

How does a contact related to risk response planning?

Answer 29

A contract helps allcate and mitigatge risk

risk analysis must be done before contact is singed

Question 30

What are contingency plan?

Answer 30

panned responses to be implemented when and if a risk event occurs

Question 31

What are a fallback plans?

Answer 31

action that will be taken if the contingency plan is not effective

Question 32

What are reserves?

What are the two kinds of reserves?

Answer 32

Time or cost added to the project to account for risk

management reserve
contingency reserve

Question 33

What is a contingency reserve

Answer 33

Time or cost allocated to cover unknowns

it is included in the cost baseline

Question 34

What is mgt reserve?

Answer 34

time or cost allocated to cover unknown unknowns

it is added to the cost baseline to get the cost budget

Question 35

What are workarounds

Answer 35

unplanned responses developed to deal with occurrence of unanticipated events or problems on a project (or to deal with risks that had been accepted because of unlikelihood of occurrence and/or minimal impact)

Question 36

What are risk assessments?

When do they occur?

Answer 36

Reviews of the risk management plan and risk register

During control risks

Question 37

What is reserve analysis?

When is it done during the risk mgt process?

Answer 37

Managing the reserves and making sure the amount remaining is adequate

During control risks

Question 38

What are risk audits?

Answer 38

Assessing the effectiveness of the risk mgt process and specific risk responses that have been implemented