Project Risk Management Flashcards by Kit Samarakone

Project risk is the uncertainty that an event or condition that affects ________ will be realized

A.
Project performance as measured by the functional managers

B.
Project impact on the organization

C.
Opportunities the project could realize

D.
At least one of the project objectives such as cost, scope, time, or quality

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True or False? Risks may have one or more causes and one or more impacts.

True

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Risk Management Planning should be completed ________ in the project planning phase.

A.
Sometime

B.
Late

C.
Early

D.
Never

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What is a Risk Breakdown Structure (RBS)?

A.
Flowchart of risks

B.
Risk impacts on the organization

C.
List or diagram of risks by category

D.
Risk management activities that are on the schedule

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Which of the following would be used to describe the significance of the negative impact of threats or the positive impact of opportunities?

A.
Cost, time, scope, and quality

B.
Sources of the risk events

C.
Types of risk responses

D.
Very Low, Low, Moderate, High

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According to Table 15-2, the impact of a risk to the project schedule will be classified as ________ if the delay to the project (as a result of the risk event) will be one week to a 20-week project schedule.

A.
Low

B.
High

C.
Very Low

D.
Moderate

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________ usually follows the Risk Identification process, but sometimes ________ directly follows the Risk Identification process when an experienced risk manager is involved.

A.
Risk Management Planning, Quantitative Risk Analysis

B.
Qualitative Risk Analysis, Quantitative Risk Analysis

C.
Quantitative Risk Analysis, Qualitative Risk Analysis

D.
Risk Monitoring and Control, Risk Response Planning

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The inputs to Risk Identification are similar to the inputs to the Risk Management Planning process with the addition of the ________.

A.
Scope Statement

B.
Risk Management Plan

C.
Risk Identification method

D.
WBS

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Which of the following is NOT an information gathering technique for risk management?

A.
Interviews

B.
Probability and Impact Matrix

C.
Delphi technique

D.
Root cause analysis

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The Risk Register consists of:

A.
Qualitative Risk Analysis, Quantitative Risk Analysis, and Risk Management Plan

B.
Qualitative Risk Analysis, Risk Response Plan, list of identified risks

C.
List of identified risks, potential responses, root causes, and updated risk categories

D.
Risk Responses, Risk Categories, Risk Management Plan

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Inputs to the Qualitative Risk Analysis process include:

A.
Risk Register

B.
Project Scope Statement

C.
Risk Management Plan

D.
Organizational Process Assets

E.
Probability and Impact Matrix

F.
All of the above

G.
A, B, C, and E

H.
A, B, C, and D

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________ and ________ are assessed for each identified risk in the Qualitative Risk Analysis process.

A.
Probability, impact

B.
Impact, priority

C.
Probability, costs

D.
None of the above

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The ________ section of the Risk Register can be used to ensure that some risk events are not overlooked during the project life cycle.

A.
Priority

B.
Watch List

C.
Qualitative Risk Analysis

D.
None of the above

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The Risk Register is updated periodically throughout the project life cycle. The Risk Register is initiated during ________ and further updated based on the information developed in the __________________.

A.
Risk Management Planning, Qualitative Risk Analysis

B.
Risk Identification, Quantitative Risk Analysis

C.
Risk Identification, Qualitative Risk Analysis

D.
Risk Management Planning, Risk Identification

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The inputs to the Quantitative Risk Analysis process are the Project Management Plan, Risk Register, Risk Management Plan, ________, and ________.

A.
Organizational Process Assets, Project Scope Statement

B.
Impact and Probability Matrix, Project Scope Management Plan

C.
Risk Probability, Impact Assessment

D.
Project Scope Management Plan, Organizational Process Assets

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Name the two tools and techniques of the Quantitative Analysis that are most subjective, i.e., that are based on opinions.

A.
Interviewing, Decision Tree Analysis

B.
Probability Distributions

C.
Expert judgment, Interviewing

D.
Expert judgment, Sensitivity Analysis

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What parts of the Risk Register are added during Quantitative Risk Analysis?

A.
Trends in Quantitative Risk Analysis results

B.
Probabilities of achieving project objectives

C.
Estimates of cost and schedule outcomes

D.
B and C

E.
A and B

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Name the strategies for negative risks.

A.
Avoid, Mitigate, Transfer, Contingency, Accept

B.
Avoid, Transfer, Mitigate

C.
Avoid, Transfer, Accept, Mitigate

D.
None of the above

True or False? Mitigation as a response strategy will always add time and/or money to the project.

FALSE

You are the PM for GHY project for your org. A portion of this project includes dangerous work; although members of the project team could likely complete the work, your sponsor doesn’t want to accept the risk. In this situation, which of the following may be used as a risk mitigation tool?

A. Vendor proposal
B. Contract
C. Quotation
D. Project requirements

Beth is the PM for her co. and Marty, her supervisor, is concerned with the possibility of Beth accepting one of the project risks. Beth explains that this is a risk that should be accepted within the project. When is it appropriate to accept a project risk?

A. It is never appropriate to accept a project risk
B. All risks must be mitigated or transferred
C. It is appropriate to accept a risk if the project team has never completed this type of project work before
D. It is appropriate to accept a risk if the risk is in balance with the reward

Frances is the PM of the LKJ project. Which one of the following techniques will she need to use to create the risk management plan?

A. Risk tolerance
B. Status meetings
C. Planning meetings
D. Variance meetings

You are the PM of the HQQ project, and part of your requirement in this role is to create a risk management5 plan. Which of the following is not part of the risk management plan?

A. Roles and responsibilities
B. Methodology
C. Technical assessment board compliance
D. Risk categories

You are the PM of the GHK project. You and manufacturer have agreed to substitute the type of plastic used in the product to a slightly thicker grade should there be more than 7% error in production. The thicker plastic will cost more and require that the production slow down, but the errors should diminish. This is an example of which of the following?

A. Threshold
B. Tracking
C. Budgeting
D. JIT manufacturing

Hans is a PM for his org, and he is working with his sponsor to identify the org’s risk tolerance. Understanding the risk tolerance and any associated enterprise environmental factors will help Hans and the project ream plan for risk responses. An org’s risk tolerance is also known as what? A. The utility function B. Herzberg’s Theory of Motivation C. Risk acceptance D. The risk-reward scenario

As a PM you must understand the components of an identified risk, a risk response, a risk trigger, risk thresholds and issues. A risk trigger is also called which of the following? A. A warning sign B. A delay C. Cost increase D. Incremental advancement of risk

The customers of the project have requested additions to the project scope. The PM brings notice that additional risk planning will need to be added to the project schedule. Why? A. The risk planning should always take the same amount of time as the activities required by the scope change B. Risk planning should always occur whenever scope is adjusted C. Risk planning should occur only at the PM’s discretion D. The PM is incorrect. Risk planning doesn’t need to happen at every change in the project

All risks must be documented in the risk register. Which of the following best described the risk register? A. It documents all of the outcomes of other risk management processes B. It is a document that contains he initial risk identification entries C. It is a system that tracks all negative risks within a project D. Its part of the project’s PMIS for integrated change control

An understanding of the different types of risk events can help the PM work better with the enterprise environmental factors and the org process assets that affect the risk management in a project. Based on this information (a) _________ include(s) fire, theft, or injury and offer(s) no chance for gain: A. Business risks B. Pure risks C. Risk acceptance D. Life risks

Complete this sentence: a project risk is a(n) __________ occurrence that can affect the project for good or bad. A. Known B. Dangerous C. Uncertain D. Known-unknown

Risk identification is an iterative process in the project and it requires participation from the PM, the project team and other key stakeholders. Because of the nature of risk, when should risk identification happen? A. As early as possible in the initiation process B. As early as possible in the planning process C. Throughout the product management life cycle D. Throughout the project life cycle

You are the PM of the KLJH project. This project will last two years and has 30 stakeholder. How often should risk identification take place? A. Once at the beginning of the project B. Throughout the execution process C. Throughout the project D. Once per project phase

Which one of the following is an acceptable tool for risk identification? A. Decision tree analysis B. Decomposition of the project scope C. Delphi technique D. Pareto charting

You are the PM of a project that will create a new and improved web site for the co. Currently, your co. has more than 8 million users around the world. You would like to poll experts within your org with a simple and anonymous form asking about any foreseeable risks in the design, structure, and intent of the web site. With the collected info, subsequent anonymous polls are submitted to the group of experts. This is an example of: A. Risk identification B. A trigger C. An anonymous trigger D. Delphi technique

Which one of the following describes SWOT? A. An analysis of strengths, weaknesses, options and timing B. An analysis of strengths, weakness, opportunities and threats C. An elite project team that comes in and fixes project risks and threats D. Ratings of 1 – 100

Which risk analysis provides the PM with a risk ranking? A. Quantifiable B. Qualitative C. Utility function D. SWOT analysis

A table of risks, their probability, their impact and a number representing the overall risk score is called a ______. A. Risk table B. Probability and impact matrix C. Quantitative matrix D. Qualitative matrix

What is the EMV if the probability is 0.45 and the impact cost/ benefit is -$300? A. $135 B. -$300 C. $45 D. -$135

The water sanitation PM has determined that the risks associated with handling certain chemicals are too high. He has decided to allow someone else to complete this portion of the project, so he has outsourced the handling and installation of chemicals and filter equipment to an experienced contractor. This is an example of which of the following? A. Avoidance B. Acceptance C. Mitigation D. Transference

A PM and the project team are actively monitoring the pressure gauge on a piece of equipment. Sarah, the engineer, recommends a series of steps to be implemented should the pressure rise above 80%. The 80% represent what? A. An upper control limit B. Threshold C. Mitigation D. A workaround

What would the probability, Impact cost benefit and Ex$V be if Marty is 60% certain that he can get the facility needed for $45,000, which is $7000 less than what was planned for? A. 0.6 $45000 $27000 B. 0.6 $52,000 $31,200 C. 0.6 $7000 $4200 D. 0.6 -$7000 -$4200

What can a PM use to determine whether it is better to make or buy a product? A. Decision tree analysis B. Fishbone model C. Ishikawa diagram D. ROI analysis

Which of the following can determine multiple scenarios, given various risks and the probability of their impact? A. Decision trees B. Monte Carlo simulations C. Pareto charts D. Gantt charts

Gary is a PM for his organization and he is evaluating the risks within his project. Some of the risk events have a high impact, while other risk events have a low probability. In this project many risks have high-risk impact scores but an overall low-risk score. How is this possible? A. The risk scores are graded on a bell curve B. The probability of each risk is low C. The impact of each risk is not accounted for until it comes to fruition D. The risks are rated high, medium, low