Chapter 17 Flashcards
The two primary components of a risk are: The event and the probability The probability and the impact The impact and the event The impact and the amount at stake
The probability and the impact
Risk constitutes a lack of knowledge \_\_\_\_\_. Of future events About the environment About the estimates About the customer’s requirements
Of future events
Which of the following is not included in risk management? Risk planning Risk Assessment Risk handling All of above are part of risk management
All of above are part of risk management
Proper risk management is reactive rather than proactive.
True
False
False
If there’s a 40% chance of making $1 million and a 60% chance of losing $600,000, then the expected monetary outcome is:
-$400,000
-$40,000
$360,000
-$360,000
-$40,000
The process that identifies, evaluates, selects and implements one or more strategies to set risk at an acceptable level is: Risk planning Risk assessment Risk handling Risk monitoring and control
Risk handling
An objective source for risk identification is: Lessons learned files Program documentation evaluations Current performance data All of the above
All of the above
Brainstorming, assumption analysis and WBS decomposition are techniques used for: Risk identification Risk assessment Risk monitoring and control Risk handling
Risk identification
Monte Carlo simulation is a technique used as part of: Risk identification Risk assessment Risk monitoring and control Risk handling
Risk assessment
The probability-impact matrix is a technique used as part of: Risk identification Risk assessment Risk monitoring and control Risk handling
Risk assessment
Nominal work groups and the Delphi Techniques are used as part of which risk management process? Risk identification Risk assessment Risk monitoring and control Risk handling
Risk identification
An investor has a 25% chance of making $1000 if the stock market is good, and a 50% chance of making $600 if the market is average. The investor expects to lose $800 if the market is bad. The expected monetary value is: $250 $350 -$250 -$400
$350
Which of the following is not considered to be an insurable risk? Direct property damage Indirect consequential loss Legal liability Inflation
Inflation
In which life cycle phase does the project manager have the greatest financial risk? (i.e. amount at state) Initiation / Approval Planning Execution Closure
Closure
In which life cycle phase is the total project risk generally the least? Initiation / Approval Planning Execution Closure
Closure
Assigning high, medium or low to a potential risk is part of: Risk identification Quantitative risk assessment Qualitative risk assessment Risk response
Qualitative risk assessment
A technique that uses a series of probability distributions and then transforms them into various risks is called: Probability estimating Monte Carlo simulation Estimating simulation Black box analysis
Monte Carlo simulation
Which risk handling mode is a project manager using if he / she throws out one of three designs for a new product? Acceptance / Assumption Avoidance Control / mitigation Transfer
Avoidance
If a project manager believes in a reactive rather than proactive risk management approach, he / she is using: Acceptance / Assumption Avoidance Control / mitigation transfer
Acceptance / Assumption
If a project manager believes in a proactive rather than reactive risk management approach, he / she is using: Acceptance / Assumption Avoidance Control / mitigation Transfer
Control / mitigation
If a project manager awards a firm-fixed price contract to a supplier, he / she is using: Acceptance / Assumption Avoidance Control / mitigation Transfer
Transfer
Risk mitigation or control does not eliminate a risk but seeks to reduce it without altering the requirements.
True
False
True
During risk monitoring and control, we focus first on the risk’s trigger rather than the risk itself.
True
False
True
Earned value measurement is a technique suitable for risk monitoring and control.
True
False
True
Risk and Knowledge are inversely related.
True
False
True
