Chapter 17 Flashcards
1
Q
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
A
The probability and the impact
2
Q
Risk constitutes a lack of knowledge \_\_\_\_\_. Of future events About the environment About the estimates About the customer’s requirements
A
Of future events
3
Q
Which of the following is not included in risk management? Risk planning Risk Assessment Risk handling All of above are part of risk management
A
All of above are part of risk management
4
Q
Proper risk management is reactive rather than proactive.
True
False
A
False
5
Q
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
A
-$40,000
6
Q
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
A
Risk handling
7
Q
An objective source for risk identification is: Lessons learned files Program documentation evaluations Current performance data All of the above
A
All of the above
8
Q
Brainstorming, assumption analysis and WBS decomposition are techniques used for: Risk identification Risk assessment Risk monitoring and control Risk handling
A
Risk identification
9
Q
Monte Carlo simulation is a technique used as part of: Risk identification Risk assessment Risk monitoring and control Risk handling
A
Risk assessment
10
Q
The probability-impact matrix is a technique used as part of: Risk identification Risk assessment Risk monitoring and control Risk handling
A
Risk assessment
11
Q
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
A
Risk identification
12
Q
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
A
$350
13
Q
Which of the following is not considered to be an insurable risk? Direct property damage Indirect consequential loss Legal liability Inflation
A
Inflation
14
Q
In which life cycle phase does the project manager have the greatest financial risk? (i.e. amount at state) Initiation / Approval Planning Execution Closure
A
Closure
15
Q
In which life cycle phase is the total project risk generally the least? Initiation / Approval Planning Execution Closure
A
Closure
