Risk Governance Flashcards
Which of the following is NOT an input of Risk Monitoring and Control Risk process? A. Approved change requests B. Work performance information C. Risk management plan D. Project scope statement
D. Project scope statement is an input to the first four – Plan Risk management, Identify risk; Perform Qualitative Risk Analysis and Perform Quantitative Risk Analysis processes. However, it is not used as an input for Plan Risk Response and Monitoring and Control Risk processes.
Which of the following processes in which new risks will be identified?
A. Identify Risk and Monitoring and Control Risk
B. Identify Risk
C. Monitoring and Control Risk
D. Identify Risk and Plan Risk Response
A. New risks can also happen while Monitoring and Control risk, especially those risks that are detected as the project work is executed and in progress.
While conducting Monitoring and Control Risk activities, what should be done with the Watchlist?
A. A response should be developed for each risk
B. Risks should be monitored for a change in status
C. Risks should be numerically analyzed
D. Do nothing unless one of the risks becomes an issue
B. We should continue to monitor Watchlist regularly to determine whether a change of status has occurred. It is not feasible to analyze low priority risks on a numerical level (option C) or develop a response plan (option A). Option D – do nothing should be an acceptance strategy that is planned.
Three months after the execution of a project work had started; the project manager is concerned about potential risks occurring as a result of performance deviations from the baseline. What should the project manager do?
A. Reassess all risks
B. Perform risk audits
C. Conduct technical performance measurement
D. Perform variance and trend analysis
D. Variance / trend analysis forecasts potential cost and/or schedule deviations of a project at completion to reveal potential risks. It also looks for deviations of performance in comparison to the performance baselines (Cost and Schedule).
Which of the following is an output of Monitoring and Control Risk activities?
A. Risk-related contractual agreements
B. Recommended preventive actions
C. Changes to the project management plan
D. The development of contingency plans
B. Option A and D are updates resulting from Plan Risk Response process. Although changes could be requested as a result of Monitoring and Control Risk process, they are not implemented until Change Control Board has given the approval, which makes option D incorrect. Thus, option B is the only choice.
Two months after the execution of a project work had started; an issue emerges as a result of a risk had gone undetected. What type of response should the risk management team implement? A. A contingency plan B. A secondary plan C. A workaround D. A fallback plan
C. A workaround is an unplanned response to a negative threat that has happened.
When carrying out Monitoring and Control Risk activities, a new risk is identified. What is the FIRST thing that the risk management team should do?
A. The new risk is not found in the risk register, so it should be ignored
B. Audit the risk
C. Develop a risk response
D. Assess the risk
D. Whenever new risk is identified, we should go through the risk management processes which for this case, assessing the risk would come first – option D.
A project manager has kicked start the process of monitoring risks with the project management team. Out of 120 risks identified, half of them received an immediate response, and 20 of them have been realized. What should the project management team do to ensure that enough funds remain to deal with the remaining risks if they occur? A. Perform reserve analysis B. Conduct a risk audit C. Implement a fallback plan D. Perform variance and trend analysis
A. Perform reserve analysis is used to compare the remaining risk to the remaining reserve. A reserve fund is typically set aside to deal with risks. For this case, perform reserve analysis allows the project management team to determine whether enough reserve remains to deal with risks.
All the following are true EXCEPT:
A. Risk audits are concerned with the effectiveness of the risk management processes
B. New risks can be identified while performing Monitoring and Control Risk activities
C. Risk management should be discussed during status meetings at least quarterly
D. Risk reassessment should be scheduled regularly as part of Monitoring and Control Risk
C. Risk management should be discussed during status meetings on a regular basis. However, discussing risk management on a quarterly basis with project team is not effective which makes option C the best choice.
Upon the closure of risk management activities, a project manager archives the risk register, updates the project management plan, and also archives the updated risk management templates. What has the project manager forgotten to do?
A. Hold a risk review
B. Celebrate the closure of all risk management activities
C. Conduct risk reassessment
D. Archive lesson learned
D. Option A – risk review should be done before any closure and not upon closure. Option B – it may be necessary to celebrate with the project team for the closure but not the most important thing. Option C – conduct risk reassessment is done before any closure. Thus, the best choice is option D.
Fine-turning risk management policies and practices can happen as a result of: A. Reserve analysis B. Risk audits C. Risk assessment D. Status meetings
B. Risk audits are concerned with measuring risk responses effectiveness as well as measuring the effectiveness of the risk management processes. As a result of risk audits, risk management policies and practices can be better fine-tuned.
Which of the following BEST describes the purpose of technical performance measurement?
A. Comparing actual technical achievements to planned achievements
B. Recording technical performance as risk are monitored
C. Creating a baseline of technical performance based on the amount of risk
D. Measuring the amount of technical performance achieved
A. Technical performance measurement is to ensure that deviations in technical performance and milestones have not occurred. The purpose is for the team to forecast the degree of success in achieving the scope of the project.
Which of the following techniques uses earned value analysis to determine whether any deviations exist? A. Reserve analysis B. Risk audits C. Technical performance measurement D. Variance and trend analysis
D. Variance and trend analysis uses earned value analysis, which is supported by work performance information and performance reports to identify deviations from the plan.
A project manager of a pharmaceutical company has uncovered several new risks after a new drug project work was executed. After conducting analysis, the project manager became concerned that there would not be enough funds to cover these additional risks if they occur. What should the project manager do? A. Perform risk analysis B. Perform risk audits C. Perform reserve analysis D. Request more funds
C. At this point, the project manager does not know whether there are enough funds remaining in the contingency reserve. To get this information, the project manager needs to perform reserve analysis. This technique compares the remaining risks to the remaining amount of contingency reserve in order to determine whether the contingency reserve is enough to cover the existing risks.
Which if the following responses are unplanned? A. Response plans B. Workaround C. Fallback plans D. Contingency plans
B. Workarounds are unplanned responses to negative risks that have occurred.
