Risk Analysis Flashcards
Which of the following is NOT an input to Perform Qualitative Risk Analysis process? A. Organizational process assets B. Project scope statement C. Risk Management plan D. Enterprise environmental factors
D. Perform Qualitative Risk Analysis uses A, B, and C and also risk register as inputs to carry out the process.
All the following will update the Risk register from Perform Qualitative Risk Analysis process EXCEPT: A. List of potential risk analysis B. Causes of risk C. Priority list of risks D. Trends in qualitative risk analysis
A. The list of potential responses is identified in the Identify Risk process. The risk register contains this update already before starting qualitative risk analysis.
Which of the following is NOT a tool and technique of the Perform Qualitative Risk Analysis process?
A. Risk probability and impact assessments
B. Beta distribution
C. Risk categorization
D. Risk urgency assessment
B. Beta distributions are a common form of probability distributions which are used in Perform Quantitative Risk Analysis. Perform Qualitative risk analysis process is not concerned with analyzing the risks numerically, and hence it doesn’t apply to this process.
A project manager is working on a mid-level building construction project is performing risk management activities. The project manager is now assessing the probability and impact of each risk. Which of the following the project manager is MOST unlikely to use to complete this activity: A. Probability and impact definitions B. Project team members C. Facilitated interviews D. Watchlist
D. Watchlist contains low-priority risks and is developed during the Perform Qualitative Risk analysis process which is the process that the project is currently in (assessing the probability and impact of risks). Thus, Watchlist cannot be used by the project manager to assess the risks.
A project manager has identified 20 risks as being “amber” after reviewing a list of risks with stakeholders. What did the project manager mean by “amber”?
A. “Amber” indicates risks should be added to the watchlist
B. “Amber” indicates risks were considered moderate risks
C. “Amber” indicates risks were considered to be high risks
D. “Amber” indicates risks had not been assessed or prioritized yet
B. Using risk probability and impact matrix, risk scores can also be rated as low, moderate, or high risks, which reflect “green – low risk”, “amber / yellow – moderate risk”, and “red – high risk”. In this case, “amber” is considered moderate risks.
A project manager of ABC Inc. is in the process of prioritizing risks. One of his team member expressed concerns with one of the risks, informing the project manager that if not responded quickly, it may have fearful consequences for the project. What should the project manager do FIRST?
A. Develop a response to the risk in question
B. Assure the team member that the risk will be addressed
C. Perform risk urgency assessment
D. Create a risk probability and impact matrix to prioritize the risk
C. Risk urgency assessment determines the level of urgency in addressing risk. This should be done for all prioritized risks so that effort is spent on those risks that have a higher impact and probability of occurring. This is to identify near-term risks, which are those risks that require a near-term response.
A team member approached the project manager about the integrity of the data used for risk management. The team member felt that the risks identified were not in alignment with what he had seen in previous past projects. The project manager informed him that the accuracy of the data had already been analyzed, and therefore, the integrity of the information and data used had been validated. The project manager then spent 30 minutes with the team member going through the results of the data’s validation. What technique did the project manager MOST likely use to check the integrity of the data used for risk management? A. Assumptions analysis B. Checklist analysis C. Data validation analysis D. Risk data quality assessment
D. Risk data quality assessment measures the confidence and accuracy of the data used for risk management purposes. This technique evaluates the accuracy, integrity, and quality of the data and information.
Which of the following is used for Risk probability and impact assessment? A. Probability and impact definitions B. Risk urgency assessment C. Watchlist D. Probability and impact matrix
A. During the first risk management process, plan risk management defines probability and impact. The purpose of defining probability and impact is to consistently measure and rate risk. These definitions are put to use in this process by performing risk probability and impact assessment.
Risk categorization groups risks by: A. Probability B. Impact C. Source D. Priority
C. Risk categorization groups risk by the source of risk and area of the project that is affected by the risk. A risk breakdown structure is used to carry out this technique.
Which of the following statement is not TRUE?
A. Risk management is a proactive practice within project management
B. Risks are prioritized during Perform Qualitative risk analysis
C. Risk symptoms are considered when evaluating if a risk is a near-term risk
D. Watchlists contain near-term risks that must be monitored carefully
D. Watchlists are low-priority risks that are determined to contain minimal amount of risk, but that should be monitored regularly for a change of status later as the project moves forward.
A team member asked the project manager for a definition of documentation review. Which of the following statement BEST describes documentation reviews?
A. A review of the project management plan to determine the approach to risk identification
B. A review of the project plans to determine if they are complete and consistent
C. A review of lessons learned to determine if they have been documented
D. A review of the project risks to determine if they are complete and consistent
B. Documentation review is responsible for looking at project plans and documents and performing a structured review to determine whether they are accurate and in line with the project requirements and complete.
A risk manager of an IT company is performing quantitative risk analysis. He decided to utilize external subject matter experts while numerically analyzing risks. What can the risk manager gain through this technique?
A. Validate the data and technique used within the process
B. Assess the likelihood that all risks have been identified
C. Gain unbiased feedback on the evaluated risks
D. Better evaluate the results of modeling and simulating techniques
A. The technique that the project manager used is known as expert judgment technique. This involves subject matter experts that are internal or external to the project, who validate the data and techniques used to conduct the process.
A project manager is using probability distributions to display data. Which of the following is most likely be used by the project manager? A. Lognormal distributions B. Uniform distributions C. Normal distributions D. Beta distributions
D. All options are various types of probability distributions. The most commonly used ones are beta distributions and triangular distributions. Therefore, D is the best choice.
All the following are tools and techniques of the Perform Quantitative Risk Analysis process EXECPT: A. Interviewing B. Sensitivity Analysis C. Brainstorming D. Monte Carlo Technique
C. Perform Quantitative Risk Analysis has two groups of tools and techniques – (1) Data gathering and representation techniques, and (2) Quantitative risk analysis and modeling techniques. Brainstorming is used during Identify Risk and is not part of these two groups. Interviewing is part of Data gathering and representation techniques.
What is the expected monetary value of a risk with a probability of 68% and an impact of $2,500? A. $1,200 B. $1,700 C. $800 D. $1,000
B. To calculate EMV, simply multiply the probability by the impact – that is multiple $68% by $2,500 to get $1,700.
