Exam 7: Managing Risk

Enhancing a risk is a tactic that seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk

Opportunities identified within a project are treated very differently from risks.

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it.

Which of the following is NOT one of the steps in the risk management process?

A ____________ (responsible for the work package)involved in risk assessment and mitigation will help focus attention on all aspects of risk management.

The implications of an identified change need to be assessed by:

Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.

Risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.

A list of questions that address traditional areas of uncertainty on a project is termed a

What is the difference between mitigating a risk and a contingency plan? Provide real life examples that illustrate the difference.

Budget reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.

An unanticipated event that occurs which is beneficial to a project is known as a(n)

Fixed-price contracts are an example of transferring risk from an owner to a contractor.

Identify and briefly describe the four steps in the risk management process.

The ________ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks.

This response is used to increase the potential effect of an identified Opportunity.

If, during risk response development, you successfully identify how you will respond to a risk, contingency planning is unnecessary.

Having an environment where identified risks are treated professionally will lead to better control of risks.

Although most risks are presented as something not desirable, there can also be desirable risks called Opportunities.