4.5.11 RISK AND OPPORTUNITY

Question 1

Techniques such as probability assessment, impact analysis and proximity are most closely associated with which of these disciplines in project management?

(1) Estimating
(2) Risk assessment
(3) Planning and scheduling
(4) Budgeting and cost control

Answer 1

(2) Risk assessment

Question 2

A risk has a probability of 50% and an impact of £100,000. What is its Expected Monetary Value?

(1) £50,000
(2) £500,000
(3) £5,000
(4) £20,000

Answer 2

(1) £50,000

Question 3

Which is not a valid response to a threat?

(1) Avoid
(2) Transfer
(3) Exploit
(4) Reduce

Answer 3

(3) Exploit

Question 4

Which is not a valid response to an opportunity?

(1) Exploit
(2) Enhance
(3) Reduce
(4) Reject

Answer 4

(3) Reduce

Question 5

Severity is a means of prioritising risks. How is it calculated?

(1) Severity = Probability / Impact
(2) Severity = Probability x Impact
(3) Severity = Probability x Expected Monetary Value
(4) Severity = (optimistic + pessimistic+(4 x most likely))/6

Answer 5

(2) Severity = Probability x Impact