PMBOK Chapter 11 - Project Risk Management

Question 1

Project Risk Management

Answer 1

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

Question 2

Plan Risk Management (process)

Answer 2

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

Question 3

Identify Risks (process)

Answer 3

the process of identifying individual project risks as well as sources of overall project risk, and documenting their characteristics

Question 4

Perform Qualitative Risk Analysis (process)

Answer 4

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

Question 5

Perform Quantitative Risk Analysis (process)

Answer 5

the process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives

Question 6

Plan Risk Responses (process)

Answer 6

the process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks

Question 7

Implement Risk Response (process)

Answer 7

the process of implementing agreed-upon risk response plans

Question 8

What is the risk management plan?

Answer 8

a component of the project management plan and describes how risk management activities will be structured and performed. Includes the following: methodology; roles and responsibilities; budgeting; timing; risk categories; definitions of risk probability and impact; probability and impact matrix; revised stakeholders’ tolerances; reporting formats; tracking

Question 9

What are documentation reviews?

Answer 9

a structured review of the project documentation may be performed, including plans, assumptions, previous project files, agreements and other information

Question 10

What is SWOT analysis?

Answer 10

examines the project team from each of the strengths, weaknesses, opportunities and threats perspectives to increase the breadth of identified risks by including internally generated risks

Question 11

What is the risk register?

Answer 11

document in which the results of risk analysis and risk response planning are recorded.

Generally contains: list of identified risks, potential risk owners, and list of potential risk responses.

Question 12

What is a risk probability and impact assessment?

Answer 12

risk probability assessment investigates the likelihood that each specific risk will occur. risk impact assessment investigates the potential effect on a project objective such as schedule cost, quality, or performance, including both negative effects for threats and positive effects for opportunities

Question 13

What is a probability impact matrix?

Answer 13

ratings are assigned to risks based on their assessed probability and impact. evaluation of each risk’s importance and priority for attention is typically conducted using a look-up table or a probability and impact matrix, such a matrix specifies combinations or probability and impact that lead to rating the risks as low, moderate or high priority

Question 14

What is risk data quality assessment?

Answer 14

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

Question 15

What is risk categorization?

Answer 15

risks to the project can be categorized by sources of risk, the area of the project affected, or other useful categories to determine the areas of the project most exposed to the effects of uncertainty

Question 16

What is risk urgency assessment?

Answer 16

indicators of priority may include probability of detecting the risk, time to affect a risk response, symptoms and warning signs and the risk rating

Question 17

What are quantitative risk analysis and modeling techniques?

Answer 17

1) Sensitivity analysis - helps to determine which risks have the most potential impact on the project
2) Decision tree analysis - evaluated by calculating the expected monetary value of each branch
3) Modeling and simulation - a project simulation uses a model that translates the specified detailed uncertainties of the project into their potential impact on project objectives (Monte Carlo, e.g.)
4) Influence diagrams - graphical aids to decision making; represents a project or situation within the project as a set of entities, outcomes, and influences, together with the relationships and effects between them

Question 18

Five strategies for negative risks or threats:

Answer 18

1) Escalate
2) Avoid - risk avoidance is where the project team acts to eliminate the threat or protect the project from its impact
3) Transfer - the project team shifts the impact of a threat to a third party, together with ownership of the response
4) Mitigate - the project team acts to reduce the probability of occurrence or impact of a risk
5) Accept - the project team decides to acknowledge the risk and not take any action unless the risk occurs

Question 19

Four strategies for positive risk or opportunities:

Answer 19

1) Escalate
2) Exploit - the exploit strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized
3) Enhance - used to increase the probability and/or the positive impacts of an opportunity
4) Share - sharing a positive risk involves allocating some or all of the ownership of the opportunity to a third party who is best able to capture the opportunity for the benefit of the project
5) Accept - accepting an opportunity is being willing to take advantage of the opportunity if it arises, but not actively pursuing it

Question 20

What is risk reassessment?

Answer 20

project risk reassessment should be regularly scheduled. the amount and detail of repetition that are appropriate depends on how the project progresses relative to its objectives

Question 21

What are risk audits?

Answer 21

examine and document the effectiveness of risk responses in dealing with identified risks and their root causes

Question 22

What is variance and trend analysis?

Answer 22

many control processes employ variance analysis to compare the planned results to the actual results.

Question 23

What is technical performance measurement?

Answer 23

compares technical accomplishments during project execution to the schedule of technical achievement

Question 24

Monitor Risks (process)

Answer 24

The process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project

Question 25

What is individual project risk?

Answer 25

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

Question 26

What is overall project risk?

Answer 26

the effect of uncertainty on the project as a whole

Question 27

5 Risk Strategies for overall project risk

Answer 27

1. Avoid
2. Exploit
3. Transfer/share
4. Mitigate/enhance
5. Accept

Question 28

What is the risk report?

Answer 28

presents information on sources of overall project risk, together with summary information on identified individual project risks