Defining the Project Budget and Risk Plans

Question 1

Security Policy

Answer 1

a document (or documents) that outlines the minimum standards required to secure the organization’s technology-related systems, assets, and data

Question 2

Physical Security

Answer 2

involves securing physical assets such as mobile devices, removeable media devices, access to facilities, and more

Question 3

Operational Security

Answer 3

includes policies for performing background checks and security clearances

Question 4

Digital Security

Answer 4

security policies that are related to access and permissions to digital assets. This may include systems, data, communication equipment and more. Access is typically role-based

Question 5

Multifactor Authentication (MFA)

Answer 5

a process whereby the user must use two or more methods to verify their identity during the sign-in process

Question 6

Need-to-know

Answer 6

Involves relaying the least amount of information needed for their activity, and nothing more

Question 7

Work effort

Answer 7

the total time it will take for a person to complete the task if they do nothing else from the time they start until the task is complete

Question 8

Three-point estimate

Answer 8

an average of the most likely estimate, the optimistic estimate, and the pessimistic estimate

Question 9

Cost baseline

Answer 9

the total expected cost for the project. Once approved, it’s used throughout the remainder of the project to measure the overall cost performance

Question 10

Project budget

Answer 10

used to track the actual expenses incurred against the estimates

Question 11

Capital Expenses (CapEx)

Answer 11

apply to assets that are expected to provide benefit to the organization for an extended time into the future

Question 12

Operational Expenses (OpEx)

Answer 12

include all expenses needed to run the day-to-day activities of the business such as administrative costs, training, travel, supplies, materials, salaries, rent, and leases

Question 13

Contingency reserve

Answer 13

also known as a buffer, is a certain amount of money set aside to cover costs resulting from possible adverse events or unexpected issues on the project

funds are controlled by the project manager

Question 14

Management reserve

Answer 14

an amount set aside by upper management to cover future situations that can’t be predicted

funds are controlled by upper management

Question 15

Expenditure tracking

Answer 15

measures the project spending to date, determining the burn rate (how fast you go through the money), and tracking expenditures to the cost baseline so that stakeholders can see what was planned verses what was actually spent on the project

is the mechanism you’ll use to report on the current state of the project

Question 16

Burn rate

Answer 16

the rate at which you are spending funds over time

total budget / time period

Question 17

Earned Value Management (EVM)

Answer 17

a performance measurement technique that compares what your project has produced to what you’ve spent by monitoring the planned value, earned value, and actual costs expended to produce the work of the project

Question 18

Planned Value (PV)

Answer 18

the approved budget assigned to the work to be completed during a given time period

Question 19

Actual Cost (AC)

Answer 19

money that’s actually been expended during a given time period for completed work

Question 20

Earned Value (EV)

Answer 20

the value of the work completed to date compared to the budget

Question 21

Cost Variance (CV)

Answer 21

measures the actual performance to date against what’s been spent

CV = EV - AC

Question 22

Schedule Variance (SV)

Answer 22

compares an activitiy’s actual progress to date to the estimated progress and is represented in terms of costs

Tells you whether the schedule is ahead of or behind what was planned for this period

SV = EV - PV

negative number = behind schedule

positive number = on or ahead of schedule

Question 23

Cost Performance Index (CPI)

Answer 23

measures the value of the work completed at the measurement date against the actual cost. It is the most critical of all the EVM measurements because it tells you the cost efficiency for the work completed to the date or at the completion of the project

                                                          CPI = EV / AC

If CPI > 1 = you are spending less than the anticipated at the measurement date

If CPI < 1 = you are spending more than the anticipated at the measurement date

Question 24

Risk

Answer 24

a potential future event that can have either negative or positive impacts on the project

Question 25

Risk Planning

Answer 25

deals with how you manage the areas of uncertainty in your project

Question 26

Risk Identification

Answer 26

the process of determining and documenting the potential risks that could occur on your project

Question 27

Risk register

Answer 27

a list of risks that includes an identification number, risk name, risk description, risk owner, and response plan

Question 28

Force majeure

Answer 28

catastrophic in nature and are outside the control of the organization and cannot be addressed with a risk response plan. Often addressed using a disaster recovery plan or cybersecurity incident response plan

might include war, employees going on strike, pandemics, cyber attacks, natural disasters, etc.

Question 29

SWOT Analysis

Answer 29

Involves analyzing the project from each of these perspectives: Strengths, Weaknesses, Opportunities, and Threats

Strengths and Weaknesses = internal

Opportunities and Threats = external

Question 30

Risk Analysis

Answer 30

identifies risks that have the greatest possibility of occurring and the greatest impact to the project if they do occur