Module 2- Introduction to Project Risk Flashcards
1
Q
- Which of the following statements concerning risks is not true?
A. Risks are unknown events
B. All risks deal with potential negative outcomes
C. Risks can be unknown unknowns
D. Risks deal with uncertainty
A
- B
A risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
2
Q
- Which of the following is not an objective of risk management?
A. Increase the impact of positive risks
B. Decrease the probability of negative impacts
C. Increase the probability of negative impacts
D. Decrease the impact of negative impacts
A
- C
Risk management includes the processes and tools used to increase the probability and impacts of positive risks and decrease the probability and impacts of negative risks.
3
Q
- When dealing with project risks what is the primary goal of the project manager?
A. Eliminate uncertainty
B. Reduce the impacts of negative risks
C. Increase the probability of positive risks
D. All of the above
A
- D
The primary goal of a project manager when dealing with project risk includes:
- Eliminate uncertainty
- Reduce the impacts of negative risks
- Increase the probability of positive risks
4
Q
- Which of the following is the key to organizational risk management?
A. A consistent approach
B. Strong communication
C. A proactive approach
D. All the above
A
- D
Good organizational risk management requires a consistent approach, a proactive approach, and very strong communications.
5
Q
- You are leading a large, complex project within your organization that is forecast to continue for ten more months. The project has an 18% chance of being impacted in a given month by a particular risk. What is the probability that the project will be impacted by the risk in the 3rd month?
A. 18%
B. 36%
C. 54%
D. 72%
A
- A
Many people miss this question. Remember, each month in the scenario is independent. So if the probability is 18% in one month and the probability is equal it is 18% in all months.
