Question 1

With a cost factor of 0.1,a schedule rating of 0.3,a reliability rating of 0.5,and a performance rating of 0.3,the overall consequence of failure was:

Accepted Answer

A) 0.2 for the squidproofing project. 
B) 0.3 for the squidproofing project. 
C) 0.4 for the squidproofing project. 
D) 0.5 for the squidproofing project. 
A) 0.2 for the squidproofing project. 
B) 0.3 for the squidproofing project. 
C) 0.4 for the squidproofing project. 
D) 0.5 for the squidproofing project. B

Question 2

If the risk of a negative outcome is slight,the best course of action might be to:

Accepted Answer

A) minimize it. 
B) share it. 
C) transfer it. 
D) accept it. 
A) minimize it. 
B) share it. 
C) transfer it. 
D) accept it. D

Question 3

The pointy-haired dean gently suggested that study tour offerings be doubled in the coming three years so Dilbert dutifully explored the possibility of offering a week-long study tour to Elbonia.The globalization committee's consensus was that the probability of failure was high;after some discussion they agreed that the figure was perhaps 0.6.The consequences of failure were another matter.The cost of failure was 0.2,the schedule element was 0.1,and the reliability score was 0.1.The team was divided on what to do with the performance score.Two members were adamant that it was possibly as high as 0.7,but the other two members felt the performance score was closer to the others,in the neighborhood of 0.15.Estimate the overall project risk factor for this undertaking and offer commentary as to the efficacy of the study tour to Elbonia.

Accepted Answer

Using the high estimate for the performance score,the overall project risk factor is 0.71.Using the low estimate for the performance score,the overall risk factor is 0.655.The difference between the two values is minimal,although the rule of thumb cutoff of 0.7 puts the high estimate risk category as high and the low estimate at the upper end of the medium risk.Dilbert might be well-served to avoid a study tour to Elbonia.
High Estimate
C_f = (C_c + C_s+ C_r + C_p)/4
C_f = (0.2 + 0.1 + 0.1 + 0.7)/4
C_f = 1.1/4 = 0.275
Low Estimate
C_f = (C_c + C_s+ C_r + C_p)/4
C_f = (0.2 + 0.1 + 0.1 + 0.15)/4
C_f = 0.55/4 = 0.1375
Overall High
RF = P_f + C_f- P_fC_f
RF = 0.6 + 0.275 - 0.6 × 0.275
RF = 0.71
Overall Low
RF = P_f + C_f- P_fC_f
RF = 0.6 + 0.275 - 0.6 × 0.275
RF = 0.655

Question 4

With the failure probability and consequence scores shown in the table,compute the overall risk factor for the project.

Accepted Answer

A) less than or equal to 0.3 
B) greater than 0.3 but less than or equal to 0.4 
C) greater than 0.4 but less than or equal to 0.5 
D) greater than 0.5 
A) less than or equal to 0.3 
B) greater than 0.3 but less than or equal to 0.4 
C) greater than 0.4 but less than or equal to 0.5 
D) greater than 0.5

Question 5

There is always a chance that different entities that should work together to complete a project won't be able to do so.This likelihood is called ________.

Accepted Answer

The answer of There is always a chance that different...

Question 6

One approach to risk mitigation is simply to accept it.

Accepted Answer

A) True 
 B)False

Question 7

Technical risk is the probability that the project will not perform to the required standards or produce substandard products or have excessive operating cost consumption.

Accepted Answer

A) True 
 B)False

Question 8

How do mentoring and cross-training mitigate risk?

Accepted Answer

Mentoring and cross-training are two app

Question 9

The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indicated below.What is the overall risk factor for the project?

Accepted Answer

A) less than or equal to 0.6 
B) greater than 0.6 but less than or equal to 0.7 
C) greater than 0.7 but less than or equal to 0.8 
D) greater than 0.8 
A) less than or equal to 0.6 
B) greater than 0.6 but less than or equal to 0.7 
C) greater than 0.7 but less than or equal to 0.8 
D) greater than 0.8

Question 10

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

Accepted Answer

A) a brainstorming meeting approach to risk factor identification. 
B) the Delphi method approach to risk factor identification. 
C) a past history approach to risk factor identification. 
D) a multiple assessments approach to risk factor identification. 
A) a brainstorming meeting approach to risk factor identification. 
B) the Delphi method approach to risk factor identification. 
C) a past history approach to risk factor identification. 
D) a multiple assessments approach to risk factor identification.

Question 11

What are the two types of contingency reserves and how are they handled?

Accepted Answer

Contingency reserves in financial and ma

Question 12

Risk management is a:

Accepted Answer

A) three-stage process. 
B) four-stage process. 
C) five-stage process. 
D) six-stage process. 
A) three-stage process. 
B) four-stage process. 
C) five-stage process. 
D) six-stage process.

Question 13

A serious risk factor probably has:

Accepted Answer

A) a high consequence and a medium likelihood. 
B) a high consequence and a low likelihood. 
C) a medium consequence and a low likelihood. 
D) a low consequence and a medium likelihood. 
A) a high consequence and a medium likelihood. 
B) a high consequence and a low likelihood. 
C) a medium consequence and a low likelihood. 
D) a low consequence and a medium likelihood.

Question 14

The expected cost of an item that is estimated at $5,000 with a task contingency multiplier of 1.2 is:

Accepted Answer

A) $4,167. 
B) $5,000. 
C) $5,200. 
D) $6,000. 
A) $4,167. 
B) $5,000. 
C) $5,200. 
D) $6,000.

Question 15

The probability that the investments made to fund the front-end activities will be lost due to project abandonment is financing risk.

Accepted Answer

A) True 
 B)False

Question 16

Opportunity and risk are at their peak during the ________ phase of the project.

Accepted Answer

The answer of Opportunity and risk are at their peak...

Question 17

Project penalty clauses that initiate at mutually agreed-on points in the project's development and implementation are:

Accepted Answer

A) liquidated damages. 
B) milestone adjustments. 
C) contingency clauses. 
D) penalty points. 
A) liquidated damages. 
B) milestone adjustments. 
C) contingency clauses. 
D) penalty points.

Question 18

The budget safety measures that address higher risks than task contingency are known as:

Accepted Answer

A) CYA factors. 
B) buffer stocks. 
C) managerial contingency. 
D) task offsets. 
A) CYA factors. 
B) buffer stocks. 
C) managerial contingency. 
D) task offsets.

Question 19

The professor wore both a belt and suspenders during lecture each day because he chose to:

Accepted Answer

A) accept risk. 
B) minimize risk. 
C) share risk. 
D) transfer risk. 
A) accept risk. 
B) minimize risk. 
C) share risk. 
D) transfer risk.

Question 20

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Accepted Answer

A) True 
 B)False

With a cost factor of 0.1,a schedule rating of 0.3,a reliability rating of 0.5,and a performance rating of 0.3,the overall consequence of failure was:

If the risk of a negative outcome is slight,the best course of action might be to:

With the failure probability and consequence scores shown in the table,compute the overall risk factor for the project.

There is always a chance that different entities that should work together to complete a project won't be able to do so.This likelihood is called ________.

One approach to risk mitigation is simply to accept it.

Technical risk is the probability that the project will not perform to the required standards or produce substandard products or have excessive operating cost consumption.

How do mentoring and cross-training mitigate risk?

The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indicated below.What is the overall risk factor for the project?

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

What are the two types of contingency reserves and how are they handled?

Risk management is a:

A serious risk factor probably has:

The expected cost of an item that is estimated at $5,000 with a task contingency multiplier of 1.2 is:

The probability that the investments made to fund the front-end activities will be lost due to project abandonment is financing risk.

Opportunity and risk are at their peak during the ________ phase of the project.

Project penalty clauses that initiate at mutually agreed-on points in the project's development and implementation are:

The budget safety measures that address higher risks than task contingency are known as:

The professor wore both a belt and suspenders during lecture each day because he chose to:

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Introduction: Why Project Management

The Organizational Context: Strategy, structure, and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building, conflict, and Negotiation

Cost Estimation and Budgeting

Project Scheduling: Networks, duration Estimation, and Critical Path

Project Scheduling: Lagging, crashing, and Activity Networks

Critical Chain Project Scheduling

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 7: Risk Management

With a cost factor of 0.1,a schedule rating of 0.3,a reliability rating of 0.5,and a performance rating of 0.3,the overall consequence of failure was:

If the risk of a negative outcome is slight,the best course of action might be to:

With the failure probability and consequence scores shown in the table,compute the overall risk factor for the project.

There is always a chance that different entities that should work together to complete a project won't be able to do so.This likelihood is called ________.

One approach to risk mitigation is simply to accept it.

Technical risk is the probability that the project will not perform to the required standards or produce substandard products or have excessive operating cost consumption.

How do mentoring and cross-training mitigate risk?

The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indicated below.What is the overall risk factor for the project?

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

What are the two types of contingency reserves and how are they handled?

Risk management is a:

A serious risk factor probably has:

The expected cost of an item that is estimated at $5,000 with a task contingency multiplier of 1.2 is:

The probability that the investments made to fund the front-end activities will be lost due to project abandonment is financing risk.

Opportunity and risk are at their peak during the ________ phase of the project.

Project penalty clauses that initiate at mutually agreed-on points in the project's development and implementation are:

The budget safety measures that address higher risks than task contingency are known as:

The professor wore both a belt and suspenders during lecture each day because he chose to:

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Introduction: Why Project Management

The Organizational Context: Strategy, structure, and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building, conflict, and Negotiation

Cost Estimation and Budgeting

Project Scheduling: Networks, duration Estimation, and Critical Path

Project Scheduling: Lagging, crashing, and Activity Networks

Critical Chain Project Scheduling

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters