Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

PMI Aug 2024 Exam Prep > Risk > Flashcards

Risk Flashcards

1
Q

When identifying risks in the external environment, define what PESTLE means?

A

Political, Economic, Socio-cultural, Technical, Legal,
Environmental

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

You are managing a project in the manufacturing sector and are performing a PESTLE analysis to identify potential external risks. Based on the following scenarios, which of the following represents a Social factor that could impact your project?

A. A new government regulation requiring stricter environmental standards for manufacturing operations.

B. An economic recession leading to a decrease in consumer demand for your products.

C. A change in local labor laws affecting employee working hours and wages.

D. A significant shift in consumer preferences towards eco-friendly products.

A

D. A significant shift in consumer preferences towards eco-friendly products.

PESTLE: Political, Economic, Socio-cultural, Technical, Legal,
Environmental

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When identifying risks, define the Delphi Technique

A

It is related to polling experts; typically anonymous

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When identifying risks, define the Monte Carlo simulation.

A

a quantitative risk analysis technique used to evaluate the impact of uncertainty on project outcomes; s curve like the race track (larger organizations)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

You are tasked with identifying potential risks for a project and are considering using the Delphi Technique. Which of the following best describes the Delphi Technique?

A. A method of risk analysis that uses historical data to predict future project outcomes.

B. A structured technique involving multiple rounds of anonymous feedback from experts to reach a consensus on potential risks.

C. A process that involves detailed statistical analysis of project performance data to identify risk factors.

D. A technique for conducting interviews with project stakeholders to identify risks and issues in the project plan.

A

B. A structured technique involving multiple rounds of anonymous feedback from experts to reach a consensus on potential risks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

You are managing a project and want to assess the potential impact of uncertainty on the project’s budget and schedule. You decide to use Monte Carlo simulation to analyze the risks. What is the primary benefit of using Monte Carlo simulation in this context?

A. It provides a single deterministic estimate of project costs and completion dates.

B. It identifies the exact point at which a project will face a cost or schedule overrun.

C. It estimates the probability of different project outcomes by simulating multiple scenarios with varying inputs.

D. It calculates the average value of the project’s risks based on historical data from similar projects.

A

C. It estimates the probability of different project outcomes by simulating multiple scenarios with varying inputs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

When identifying risks in the external environment, define what TECOP means?

A

Technical, Environmental, Commercial, Operational,
Political

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

You are conducting a risk assessment for your project using the TECOP framework. You encounter a situation where a new regulation is introduced that impacts how your project can be executed. Which component of TECOP does this situation fall under?

A. Technical

B. Environmental

C. Commercial

D. Political

A

D. Political

TECOP stands for Technical, Environmental, Commercial, Organizational, and Political risks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

During a project risk management meeting, you are reviewing the Risk Register. Which of the following is NOT typically included in a Risk Register?

A. Risk Description

B. Risk Owner

C. Probability and Impact Assessment

D. Detailed Project Budget Breakdown

A

D. Detailed Project Budget Breakdown

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

You are managing a project and have identified several potential risks. To address these risks, you are developing a risk contingency plan. What is the primary purpose of a risk contingency plan?

A. To eliminate all potential risks from the project.

B. To document the steps to be taken if a risk event occurs and impacts the project objectives.

C. To detail the project’s budget and schedule for approval by stakeholders.

D. To record all identified risks and their initial impact assessments without further action.

A

B. To document the steps to be taken if a risk event occurs and impacts the project objectives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

In project risk management, what is the primary responsibility of a risk owner?

A. To identify new risks and update the Risk Register.

B. To develop the risk management plan and define risk responses.

C. To implement and monitor the risk response strategies for assigned risks.

D. To approve the overall project budget and schedule adjustments.

A

C. To implement and monitor the risk response strategies for assigned risks.

The scrum master/project manager is responsible for finding a
resolution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

During a project management meeting, a team member raises a concern about a potential risk that was previously identified. To quickly review the details and status of this risk, which document should you consult?

A. Project Charter

B. Project Schedule

C. Risk Register

D. Issue Log

A

C. Risk Register

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

You are reviewing the project’s current status and need to determine the actions taken for a specific risk that was previously identified. Where should you look to find this information?

A. Project Scope Statement

B. Change Log

C. Risk Register

D. Stakeholder Engagement Plan

A

C. Risk Register

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

During a risk review meeting, you need to verify which risks have been assigned response actions and who is responsible for managing them. What document should you consult?

A. Risk Register

B. Quality Management Plan

C. Resource Breakdown Structure

D. Lessons Learned Repository

A

A. Risk Register

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

If you need to review the current status and mitigation efforts for a particular risk that has recently been flagged as high priority, which document will provide the most relevant information?

A. Project Management Plan

B. Risk Register

C. Milestone Chart

D. Communication Plan

A

B. Risk Register

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

True or false: Risk is always negative, there is no such thing as positive risk?

A

False, it can be positive and negative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

You are managing a project and need to identify potential risks that could impact its success. Which of the following best defines a project risk?

A. A positive or negative event that has the potential to impact the project and requires a response plan.

B. An event that has already occurred and is negatively affecting the project.

C. An acceptable level of uncertainty that the organization is willing to tolerate.

D. The threshold beyond which risks are escalated to senior management.

A

A. A positive or negative event that has the potential to impact the project and requires a response plan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

During a project review, you identify a warning sign that indicates a particular risk is about to occur. What term is used to describe this warning sign?

A. Risk Appetite

B. Trigger

C. Tolerance Line

D. Issue

A

B. Trigger

19
Q

While executing your project, you encounter a condition that is currently affecting the project’s progress negatively. What is this condition called and where should it be recorded?

A. Risk, recorded in the Risk Register

B. Issue, recorded in the Issue Log

C. Secondary Risk, recorded in the Risk Register

D. Residual Risk, recorded in the Risk Register

A

B. Issue, recorded in the Issue Log

20
Q

In your project, you need to determine the acceptable level of deviation from the planned performance before taking corrective action. What is this concept called?

A. Risk Threshold

B. Tolerance Line

C. Risk Appetite

D. Risk Register

A

B. Tolerance Line

21
Q

Question 5: Risk Appetite

Your organization is considering taking on a new project and evaluating the level of uncertainty it is willing to accept. What term describes the degree of uncertainty the organization is prepared to handle?

A. Risk Threshold

B. Risk Appetite

C. Secondary Risk

D. Residual Risk

A

B. Risk Appetite

22
Q

After implementing a risk response strategy, you discover a new risk that arises as a direct consequence of the response. What is this new risk called?

A. Residual Risk

B. Secondary Risk

C. Trigger

D. Issue

A

B. Secondary Risk

22
Q

When assessing the risk exposure of your project, you need to determine the level at which risks must be addressed versus those that may be accepted. What term describes this level?

A. Risk Appetite

B. Tolerance Line

C. Risk Threshold

D. Residual Risk

A

C. Risk Threshold

23
Q

Following the implementation of a risk response plan, some level of risk still remains. What term describes this remaining risk?

A. Secondary Risk

B. Issue

C. Residual Risk

D. Trigger

A

C. Residual Risk

24
Q

During a project, your team encounters a situation where a task cannot proceed due to a significant obstacle. As the project manager, you decide that the best approach is to find a way to circumvent the obstacle rather than remove it or minimize its impact. What term best describes this approach?

A. Impediment

B. Blocker

C. Mitigation

D. Workaround

A

D. Workaround

25
Q

In your project, you identify a major blocker that is preventing the team from making progress. What is the appropriate action to take when addressing this blocker?

A. Attempt to remove the blocker entirely from the project.

B. Ignore the blocker if it does not impact the overall project goals.

C. Implement a workaround to continue progress while addressing the blocker later.

D. Reassign the task to another team member to bypass the blocker.

A

A. Attempt to remove the blocker entirely from the project.

26
Q

During a sprint review, a team member reports an impediment that is hindering their ability to complete a task. How should this impediment be handled?

A. Address the impediment by finding a solution to remove or minimize its impact.

B. Consider the impediment as a blocker and halt the project until it is resolved.

C. Reassign the task to another team member to bypass the impediment.

D. Document the impediment but do not take any immediate action until the next project phase.

A

A. Address the impediment by finding a solution to remove or minimize its impact.

27
Q

Are projects more risky at the beginning or as they near the end?

A

Beginning

28
Q

For each risk identified, what two things need to be decided?

A
  • The likelihood of it happening (probability)
  • And the impact it will make if it happens
29
Q

During a project risk assessment meeting, you are categorizing risks into various types to better understand their sources. Which of the following categories would best include risks related to technical challenges and equipment failures?

A. External Risks

B. Organizational Risks

C. Technical Risks

D. Project Management Risks

A

C. Technical Risks

These include risks related to technology, technical challenges, and equipment failures that could impact the project’s success.

30
Q

You are analyzing risks associated with the political environment and changes in government regulations that might affect your project. What category of risks does this situation represent?

A. Technical Risks

B. External Risks

C. Organizational Risks

D. Strategic Risks

A

B. External Risks

These risks arise from external factors such as changes in government regulations, political instability, or other environmental influences that are beyond the control of the project team.

31
Q

In your project, you are concerned about potential risks related to insufficient resources, such as inadequate staffing or budget constraints. What category of risks does this describe?

A. Strategic Risks

B. External Risks

C. Organizational Risks

D. Technical Risks

A

C. Organizational Risks

These risks include issues related to the internal functioning of the organization, such as inadequate staffing, budget constraints, or resource limitations.

32
Q

You are using Monte Carlo simulation to assess the potential impact of project risks on your schedule. What is the primary benefit of applying Monte Carlo simulation in this context?

A. It provides a single-point estimate of project completion dates.

B. It determines the exact cost of each risk event.

C. It offers a range of possible outcomes and probabilities for project completion.

D. It ensures that all project risks are eliminated.

A

C. It offers a range of possible outcomes and probabilities for project completion.

computer simulation; s-curve

33
Q

In a project risk analysis, you use Monte Carlo simulation to model the effects of risk events on your project budget. Which of the following statements accurately describes the outcome of this simulation?

A. It will produce a detailed list of all identified risks with their mitigation strategies.

B. It will calculate the most likely cost of the project with certainty.

C. It will generate a distribution of potential costs and their probabilities, highlighting the risk exposure.

D. It will provide a fixed budget amount without considering uncertainties.

A

C. It will generate a distribution of potential costs and their probabilities, highlighting the risk exposure.

computer simulation; s-curve

34
Q

In a project risk analysis, you are conducting a qualitative assessment to prioritize risks. You use a risk matrix to plot or score each risk based on its probability and impact, employing a color-coded system to indicate the level of risk. What does the color-coding typically represent in this context?

A. Red indicates high probability, Yellow indicates medium probability, and Green indicates low probability.

B. Red indicates high impact, Yellow indicates medium impact, and Green indicates low impact.

C. Red indicates high risk (both high probability and high impact), Yellow indicates medium risk, and Green indicates low risk (both low probability and low impact).

D. Red indicates low risk, Yellow indicates medium risk, and Green indicates high risk.

A

C. Red indicates high risk (both high probability and high impact), Yellow indicates medium risk, and Green indicates low risk (both low probability and low impact).

35
Q

During a project risk assessment, you decide to perform a sensitivity analysis to evaluate which risks have the greatest impact on your project’s objectives. You use a diagram that visualizes the risks in descending order of their impact. What is the name of this diagram, and what does it represent?

A. Pie Chart

B. Fishbone Diagram

C. Tornado Diagram

D. Risk Matrix

A

C. Tornado Diagram

Sensitivity analysis: looking at risk, charting from greatest risk to smallest risk. Looks like a tornado, so called a tornado diagram

36
Q

You had a risk that happened, went to project sponsor, they told you they would response themselves. Which risk response did you use?

A. Transfer

B. Escalate

C. Mitigate

D. Accept

A

B. Escalate

37
Q

You are managing a project and have identified a significant threat that could negatively impact your project. You decide to reduce the likelihood or impact of this threat by taking proactive measures. Which risk response strategy are you using?

A. Accept

B. Mitigate

C. Transfer

D. Avoid

A

B. Mitigate

This strategy involves taking actions to reduce the likelihood or impact of a threat, minimizing its potential negative effects on the project.

38
Q

You have identified a key opportunity in your project that could significantly benefit the project if fully realized. You decide to take steps to ensure that the opportunity is fully seized and maximized. Which risk response strategy are you applying?

A. Enhance

B. Exploit

C. Share

D. Accept

A

B. Exploit

39
Q

In your project, you identify a risk that you cannot manage internally. To handle this risk, you decide to outsource the responsibility to a third party, such as an insurance company or contractor. Which risk response strategy are you using?

A. Transfer

B. Avoid

C. Mitigate

D. Escalate

A

A. Transfer

40
Q

You encounter a low-priority risk in your project. Given its low impact and low probability, you decide not to take any immediate action and deal with it if and when it occurs. What risk response strategy does this represent?

A. Accept

B. Mitigate

C. Avoid

D. Enhance

A

A. Accept

41
Q

You are managing a project and identify a high-risk event that could severely impact the project’s objectives. To ensure that the risk does not occur, you decide to change the project plan entirely, removing the risk from the project scope. Which risk response strategy are you using?

A. Transfer

B. Mitigate

C. Avoid

D. Escalate

A

C. Avoid

42
Q

In iterative/agile approach, whose job is it to remove impediments/dealing with risk so it doesn’t interfere with work?

A

Scrum master

43
Q

Where are risks at their highest?

A

At the beginning/start of the project

PMI Aug 2024 Exam Prep (23 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions