Planning: Risk Management

Question 1

Includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.

Answer 1

Project Risk Management

Question 2

A component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed.

Answer 2

Risk Management Plan

Question 3

The process of defining how to conduct risk management activities for a project.

Answer 3

Plan Risk Management

Question 4

The effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.

Answer 4

Overall Project Risk

Question 5

Uncertain event or condition; has positive or negative effect on one or more project objectives

Answer 5

Individual Risk level

Question 6

Negative risks are called ___; positive risks are called ___.

Answer 6

threats, opportunities

Question 7

Non-event risk type where productivity may be above or below target, unseasonal weather conditions may occur during construction

Answer 7

Variability risk

Question 8

Non-event risk such as future developments in regulatory frameworks, inherent systemic complexity in the project

Answer 8

Ambiguity risk

Question 9

“Unknowable-unknown” type of risk

Can only be recognized after they have occurred

Answer 9

Emergent risk

Question 10

A hierarchical representation of potential sources of risks.

Answer 10

Risk Breakdown Structure (RBS)

Question 11

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

Answer 11

Risk

Question 12

A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.

Answer 12

Risk Acceptance

Question 13

The degree of uncertainty an organization or individual is willing to accept in anticipation of a reward.

Answer 13

Risk Appetite

Question 14

A type of audit used to consider the effectiveness of the risk management process.

Answer 14

Risk Audit

Question 15

A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.

Answer 15

Risk Avoidance

Question 16

Organization by sources of risk (ex: using the RBS), the area of the project affected (ex: using the WBS), or other useful category (ex: project phase) to determine the areas of the project most exposed to the effects of uncertainty.

Answer 16

Risk Categorization

Question 17

A group of potential causes of risk

Answer 17

Risk Category

Question 18

Purpose being to define how to conduct risk assessment and risk management activities for a project

Answer 18

Plan Risk Management

Question 19

Purpose being to determine which risks may affect the project and document their characteristics

Answer 19

Identify Risks

Question 20

Purpose being to prioritize risks for further analysis or action by assessing and combining their probability of occurrence and impact

Answer 20

Perform Qualitative Risk Analysis

Question 21

Purpose being to develop options and actions to enhance opportunities and to reduce threats to project objectives

Answer 21

Plan Risk Response

Question 22

The process of identifying individual project risks and sources of overall project risk and documenting characteristics.

Answer 22

Identify Risks

Question 23

A repository in which outputs of risk management processes are recorded.

Answer 23

Risk Register

Question 24

A project document developed progressively throughout the Project Risk Management processes, which summarizes information on individual project risks and the level of overall project risk.

Answer 24

Risk Report

Question 25

The measure of acceptable variation around an objective that reflects the risk appetite of the organization and stakeholders.

Answer 25

Risk Threshold

Question 26

All documents used in signing, executing, and closing an agreement.

Answer 26

Procurement Documentation

Question 27

An analytical technique used to determine the basic underlying reason that causes a variance or a defect or a risk. A root cause may underlie more than one variance or defect or risk.

Answer 27

Root Cause Analysis

Question 28

Explores the validity of all assumptions and constraints made during planning.

Answer 28

Assumptions and Constraints Analsis

Question 29

Technique examines project from strengths, weakness, opportunities, and threats

Answer 29

SWOT Analysis

Question 30

Predetermined list of risk categories: PESTLE

Answer 30

Political, economic, social, technological, legal, environmental

Question 31

Predetermined list of risk categories: TECOP

Answer 31

technical, environmental, commercial, operational, political

Question 32

Predetermined list of risk categories: VUVA

Answer 32

volatility, uncertainty, complexity, ambiguity

Question 33

The person responsible for monitoring the risks and for selecting and implementing an appropriate risk response strategy.

Answer 33

Risk Owner

Question 34

What is the lowest level of the RBS?

Answer 34

A risk prompt list

Question 35

Explores the validity of all assumptions made during planning

Answer 35

Assumption analysis

Question 36

Shows relationships between variables and outcomes

Answer 36

Influence Diagram

Question 37

The process of prioritizing risks for further analysis or action by assessing their combined probability of occurrence and impact as well as other characteristics

Answer 37

Perform Qualitative Risk Analysis

Question 38

A formal or informal approach to elicit information from stakeholders by talking to them directly.

Answer 38

Interviews

Question 39

Technique to evaluate the degree to which the data about risks is useful for risk management.

Answer 39

Technique to evaluate the the degree to which the data about risks is useful for risk management.

Question 40

A risk response strategy whereby the project team acts to increase the probability of occurrence or impact of an opportunity.

Answer 40

Risk Enhancement

Question 41

A risk response strategy whereby the team acknowledges that a risk is outside of its sphere of influence and shifts the ownership of the risk to a higher level of the organization where it is more effectively managed.

Answer 41

Risk Escalation

Question 42

A risk response strategy whereby the project team acts to ensure that an opportunity occurs.

Answer 42

Risk Exploiting

Question 43

An aggregate measure of the potential impact of all risks at any given point in time in a project, program, or portfolio.

Answer 43

Risk Exposure

Question 44

A risk response strategy whereby the project team acts to decrease the probability of occurrence or impact of a threat.

Answer 44

Risk Mitigation

Question 45

A meeting to examine and document the effectiveness of risk responses in dealing with overall project risk and with identified individual project risks.

Answer 45

Risk Review

Question 46

A risk response strategy whereby the project team allocates ownership of an opportunity to a third party who is best able to capture the benefit of that opportunity.

Answer 46

Risk Sharing

Question 47

A risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response.

Answer 47

Risk Transference

Question 48

A grid of mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs.

Answer 48

Probability and Impact Matrix

Question 49

When are hierarchical charts used?

Answer 49

when more than two parameters are used

Question 50

A list of items, actions, or points to be considered

Answer 50

Checklists

Question 51

A predetermined list of risk categories that might give rise to individual project risks and that could also act as sources of overall project risk

Answer 51

A prompt list

Question 52

The ability to effectively guide a group event to a successful decision, solution, or conclusion

Answer 52

Facilitation

Question 53

What is the difference between 'probability and impact matrix' and 'risk data quality assessment'?

Answer 53

probability and impact matrix - assigns a risk rating to each risk risk data quality assessment - verifies the quality of the data used to identify risk

Question 54

A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty.

Answer 54

Decision Tree Analysis

Question 55

Formula for Expected Monetary Value (EMV)

Answer 55

EMV = Probability x Impact

Question 56

Shows relationship between variables and outcomes

Answer 56

Influence diagrams

Question 57

A way to graphically display sensitivity analysis

Answer 57

Tornado Diagram

Question 58

Name three strategies to handle negative risks.

Answer 58

Accept, Mitigate, and Transfer

Question 59

Name three strategies to handle positive risks.

Answer 59

Accept, Share, and Enhance

Question 60

Risk strategy when the risk is simply accepted.

Answer 60

Accept

Question 61

Risk strategy when the risk is reducing the probability of risk occurring and/or minimizing the impact if the risk does occur

Answer 61

Mitigate

Question 62

Risk strategy used when something is changed so that a risk event can no longer occur

Answer 62

Avoid

Question 63

Risk strategy that increases the probability and positive impacts of an opportunity

Answer 63

Enhance

Question 64

Risk strategy used when risk is shifted to a third party

Answer 64

Transfer

Question 65

Risk strategy used when something is changed to ensure that a risk event occurs

Answer 65

Exploit

Question 66

Risk response strategy that involves setting aside a contingency reserve but doing nothing further

Answer 66

Active acceptance

Question 67

Planned risk response that is implemented in response to a particular occurrence

Answer 67

Contingency plan aka Secondary plan

Question 68

Planned risk response that is an alternative set of actions and tasks available in the event that the primary plan needs to be abandoned because of issues, risks, or other causes

Answer 68

A fallback plan

Question 69

A risk that remains even after risk response plans have been implemented

Answer 69

Residual risk (leftover portion of the risk which could not be eliminated via the response plan)

Question 70

A risk that arises as a direct result of implementing a risk response

Answer 70

A secondary risk

Question 71

In order for management reserves to be released, whose approval would be needed?

Answer 71

Management not part of the Cost Baseline

Question 72

Whose approval is needed to spend contingency reserves?

Answer 72

Project manager to cover uncertain but foreseeable events