Chapter 11: Project Risk Management

Question 0

What is a workaround and when might it be used?

Answer 0

A response to a threat that has occured, for which a prior response had been planned or was not effective.

Question 1

What is the primary goal of risk management?

Answer 1

Increase the probability and impact of positive risk (opportunities) and decrease the probability and impact of negative risks (threats)

Question 2

What is the difference between contingency reserves and management reserves?

Answer 2

Contingency reserves: Budget within the cost baseline or performance measurement baseline that is allocated for identified risks that are accepted and for which contingent or mitigating responses are developed.

Management reserves: An amount of the project budgets reserved for unforseen work that is within the scope of the project. THe management reserve is not included in the performance measurement baseline (PMB).

Question 3

What is probability?

Answer 3

The likelihood that the event or condition may occur.

Question 4

Which process uses information-gathering techniques as tools and techniques?

What are some exemples of information gathering techniques?

Answer 4

Identify Risk process

Examples of information-gathering techniques:
Brainstorming
Delphi technique
Interviewing (or expert interviewing)
Root cause analysis

Question 5

What is the formula for calculating the EMV and how is the value used?

Answer 5

P x Value of I = EMV

Question 6

What are the strategies for negative risks (threats)?

Answer 6

Avoid
Transfert
Mitigate
Accept

Question 7

What is the purpose of the planning meetings and analysis in the Plan Risk Management process?

Answer 7

Conducting high-level plans for risk management activities, which might:
Determine the definition of risk, probability, and impact for projects
Assign risk reserve approches
Tailor templates for risk documents
Develop cost elements and schedule activities for the project budget and schedule

Question 8

Why is the stakeholder register an input to Identify Risks?

Answer 8

Key stakeholders, especially customers, identify in the stakeholder register should participate in identifying risks.

Question 9

What is a trigger condition?

Answer 9

An event or situation that indicates that a risk is about to occur.

Question 10

Updates to the risk register are key outputs of which 4 Project Risk Management processes?

Answer 10

Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Control Risks

Question 11

Risk-related contract decisions are outputs of which Project Risk Management process?

Answer 11

Plan Risk Responses

Question 12

What are the 2 kind of risk?

Answer 12

Negative risks (threats): Can result in increased cost, lost time, or other detrimental to the project

Positive risks (opportunities): Can save time or money or produce other project benefits

Question 13

What are the 13 inputs to Identify Risks?

Answer 13

Risk management plan
Cost management plan
Schedule management plan
Quality management plan
Human resource management plan
Scope baseline
Activity cost estimates
Activity duration estimates
Stakeholder register
Project documents
Procurement documents
Enterprise environmental factors
Organizational process assets

Question 14

What is the primary difference between Plan Risk Management and Plan Risk Responses?

Answer 14

Plan Risk Management: The process of defining how to conduct risk management activities for a project.

Plan Risk Responses: The process of developing options and actions to enhance opportunities and reduce threats to project objectives.

Question 15

What is the difference between secondary risks and residual risks?

Answer 15

Secondary risks: A risk that arises as a direct result of implementing a risk response.

Residual risks: A risk that remains after risk responses have been implemented.

Question 16

What is impact?

Answer 16

The consequences to the project if an event occurs

Question 17

What is the primary output of Identify Risk?

Answer 17

The risk register

Question 18

Risk probability and impact assessment, probability and impact matrix, risk data quality assessment, risk categorization, risk urgency assessment, and expert judgement are tools and techniques for which Project Risk Management process?

Answer 18

Perform Qualitative Risk Analysis

Question 19

What are the 6 Project Risk Management processess?

Answer 19

Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Control Risks

Question 20

What are the strategies for positive risks (opportunities)?

Answer 20

Exploit
Enhance
Share
Accept

Question 21

What are the main responsibilities of risk owners?

Answer 21

Tracking their assisgned risks
Implementing the documented risk response pan if/when the risk occurs
Monitoring the risk for changes in probability or impact

Question 22

Why ar documentation reviews considered tools and techniques for Identify Risks?

Answer 22

Project documentation, including plans, assumptions, previous project files, and plans from past projects can be good indicators of project risks.

Question 23

How does the PMI define risk?

Answer 23

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.

Question 24

What are the primary inputs to Plan Risk Management?

Answer 24

Project Management plan
Project charter
Stakeholder register
Enterprise environmental factors
Operational process assets

Question 25

Risk assessment includes which 3 risk management processes?

Answer 25

Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis

Question 26

What is the formula for calculating the risk score and how is this score used?

Answer 26

P x I = Risk Score

When performing qualitative risk analysis, calculaate a risk score for each risk identified on the risk register in order to determine which risks have the highest score and should be further considered by quantitative risk analysis and/or risk response planning.