Project Risk Management

Question 1

Risk

Answer 1

an uncertain event or condition that if it occurs has a positive or negative effect on one or more project objectives; threats or opportunities; increase positive risks and decrease negative ones; unknowns of the project

Question 2

overall project risk

Answer 2

term used to describe the effect of uncertainty on the project as a whole

Question 3

Project Risk Tailoring Considerations (4)

Answer 3

1. project size
2. project complexity
3. project importance
4. development approach

Question 4

Project Risk Trends and Emerging Practices (3)

Answer 4

1. non-event risks
2. project resilience
3. integrated risk management

Question 5

Plan Risk Management

Answer 5

defining how to conduct risk management activities for a project; match risk with importance; may be necessary to revisit

Question 6

Risk Management Plan

Answer 6

part of PMP that describes how risk management activities will be structured and performed; risk strategy, methodology, funding, timing, reporting, tracking, probability and impact matrices, stakeholder appetite

Question 7

Identify Risks

Answer 7

interactive process of identifying individual project risks as well as sources of overall project risk and documenting characteristics; involve project team

Question 8

SWOT analysis

Answer 8

examines the project from each of the strengths, weaknesses, opportunities, and threats perspectives

Question 9

Perform Qualitative Risk Analysis

Answer 9

prioritizes individual project risk so they can be analyzed further for probability of occurrence and impact; focuses on high priority risks; risk perception among team/stakeholders; identifies risk owner to plan risk analysis; PM to assign value of each risk and calculate ranking

Question 10

Perform Quantitative Risk Analysis

Answer 10

quantifies overall project risk exposure, in terms of time, cost, resources and can provide additional quantitative information to support response planning; high-quality data on individual risks; specialized software and expert in data analysis

Question 11

simulations

Answer 11

used to model the combined effects of individual project risks to evaluate their potential impact on achieving project objectives

Question 12

histogram

Answer 12

shows frequency of a particular simulation outcome

Question 13

Cumulative Probability Distribution (S-Curve)

Answer 13

shows the probability of achieving any particular outcome

Question 14

sensitivity analysis

Answer 14

helps determine which individual project risks could have most impact on project outcomes

Question 15

tornado diagram

Answer 15

presents calculated correlation coefficient for each element of the quantitative risk analysis model that can influence the project outcome; items ordered by descending strength of correlation giving tornado appearance

Question 16

decision tree analysis

Answer 16

diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty; used to support selection of best of several alternate actions; calculate Expected Monetary Value (EMV) of each branch

Question 17

influence diagram

Answer 17

represents project as a set of entities, outcomes. and influences with their relationships and effects

Question 18

risk report

Answer 18

project document that will be updated to reflect results of risk analysis; assessment of overall project risk; chances of project success; degree of variability

Question 19

Plan Risk Response

Answer 19

identifies ways to address overall and individual project risks; allocates resources and inserts activities into project documents and PMP as needed; minimize threats and maximize opportunities; reduce overall project risk

Question 20

Strategies for Threats (5)

Answer 20

1. escalate
2. avoid
3. transfer
4. mitigate
5. accept

Question 21

Strategies for Opportunities (5)

Answer 21

1. escalate
2. exploit
3. share
4. enhance
5. accept

Question 22

contingent response strategies

Answer 22

response plan only executed under certain predefined conditions

Question 23

Implement Risk Responses

Answer 23

ensures that agreed-upon risk responses are executed as planned; communicate risk management status and responses to stakeholders; change control should address risks with proposed changes

Question 24

Monitor Risks

Answer 24

enables project decisions to be based on information about overall project risk and individual project risks; tracking identified risks; identifying and analyzing new risks; evaluate throughout