Risk Management Knowledge Area

Question 1

What are the two levels of project risk addressed by Project Risk Management processes:

Answer 1

1. Individual Project Risk: is an uncertain event which could have positive or negative effect on the project objectives
2. Overall Project Risk: is the effect of uncertainty on the project as a whole, arising from all sources of uncertainty including individual risks, representing the exposure of stakeholders to the implications of variations in project outcome, both positive and negative.

Question 2

Define risk

Answer 2

uncertainty; an unknown future event; positive risks are opportunities, negative risks are threats

Question 3

Define residual risk

Answer 3

any risk remaining after the risk response strategy is implemented; left- over risk

Question 4

Define secondary risk

Answer 4

a risk that arises from the execution of a risk response plan

Question 5

Define qualitative risk analysis

Answer 5

A quick and easy risk assessment method that combines the probability and impact to assign a risk score

Question 6

Expected Monetary Value (EVM)

Answer 6

formula: EMV = Probability x impact

Question 7

Tornado Diagram

Answer 7

uses the results of a sensitivity analysis to graphically show which variables have the greatest impact on the project

Question 8

Threat Strategies

Answer 8

Escalate
Avoid
Transfer
Mitigate 
Accept

Question 9

Opportunity Strategies

Answer 9

Escalate
Exploit
Share
Enhance
Accept

Question 10

Define Reserves

Answer 10

money or time set aside in case a risk occurs; contingency reserves are for identified risks; management risks are for unidentified risks

Question 11

Inputs, T&Ts and Outputs of Plan Risk Management

Answer 11

Inputs: Project charter, Project management plan, project documents, EEF/OPAs

T&Ts: expert judgement, data analysis, meetings

Outputs: Risk management plan

Question 12

Inputs, T&Ts and Outputs of Identify Risks

Answer 12

Inputs: Project management plan, project documents, Agreements, Procurement Documentation, EEF/OPAs

T&Ts: Expert judgment, data gathering, data analysis, interpersonal and team skills, prompt lists, meetings

Outputs: Risk register, risk report, project documents updates

Question 13

Inputs, T&Ts and Outputs of Perform Qualitative Risk Analysis

Answer 13

Inputs: Project management plan, project documents, EEF/OPAs

T&Ts: Expert judgment, data gathering, data analysis, interpersonal and team skills, risk categorization, data representation, meetings

Outputs: project documents updates

Question 14

Inputs, T&Ts and Outputs of Perform Quantitative Risk Analysis

Answer 14

Inputs: Project management plan, project documents, EEF/OPAs

T&Ts: expert judgment, data gathering, interpersonal and team skills, representations of uncertainty, data analysis

Outputs: Project documents updates

Question 15

Inputs, T&Ts and Outputs of Plan Risk Responses

Answer 15

Inputs: Project management plan, project documents, EEF/OPAs

T&Ts: expert judgment, data gathering, interpersonal and team skills, strategies for threats, strategies for opportunities, contingent response strategies, strategies for overall project risk, data analysis, decision making

Outputs: change requests, project management plan updates, project documents updates

Question 16

Inputs, T&Ts and Outputs of Implement Risk Response

Answer 16

Inputs: Project Management Plan, Project Documents, OPAs

T&Ts: Expert Judgment, Interpersonal and team skills, Project Management Information Systems

Outputs: Change requests, project documents updates

Question 17

Inputs, T&Ts and Outputs of Monitor Risks

Answer 17

Inputs: Project Management Plan, Project Documents, work performance data, work performance reports

T&Ts: Data analysis, audits, meetings

Outputs: Work performance information, change requests, project management plan updates, project documents updates, OPA updates