Question 1

Statement: The principle of risk transfer uses contractual incentives or penalties to shift the risk from one party to another.

Accepted Answer

A) True 
 B)False  True

Question 2

Circle all that are true:

Accepted Answer

A)  the MAXIMAX decision criterion leads to selecting the strategy that would maximize the outcome, assuming the best conditions will prevail. 
B)  the MAXIMIN decision criterion leads to selecting the strategy that would maximize the outcome, assuming the worst conditions prevail. 
C)  the MINIMAX decision criterion leads to selecting the strategy that would minimize the regret of not having selected the best strategy. 
D)  the MAXIMUM EXPECTED PAYOFF decision criterion leads to selecting the strategy that would maximize the outcome, assuming all conditions have equal likelihood. 
A)  the MAXIMAX decision criterion leads to selecting the strategy that would maximize the outcome, assuming the best conditions will prevail. 
B)  the MAXIMIN decision criterion leads to selecting the strategy that would maximize the outcome, assuming the worst conditions prevail. 
C)  the MINIMAX decision criterion leads to selecting the strategy that would minimize the regret of not having selected the best strategy. 
D)  the MAXIMUM EXPECTED PAYOFF decision criterion leads to selecting the strategy that would maximize the outcome, assuming all conditions have equal likelihood. A, B, C, D

Question 3

Statement: Not every project requires a comprehensive risk analysis and risk management plan.

Accepted Answer

A) True 
 B)False  True

Question 4

Statement: In general, a larger variance in the estimated duration time or cost for an activity represents greater risk for that activity.

Accepted Answer

A) True 
 B)False

Question 5

Match each of the following definition with the correct terms:
-____ A buffer resource for dealing with a risk if it occurs.

Accepted Answer

A)  risk profile 
B)  risk officer 
C)  risk reserve 
D)  risk management plan 
A)  risk profile 
B)  risk officer 
C)  risk reserve 
D)  risk management plan

Question 6

If the risk likelihood is 0.4, the risk impact is 6.0, the risk consequence is (circle one):

Accepted Answer

A)  6.6 
B)  4 
C)  2.4 
D)  None of these 
A)  6.6 
B)  4 
C)  2.4 
D)  None of these

Question 7

Statement: In development projects, attempts to avoid risk will tend to increase the opportunities and payoff.

Accepted Answer

A) True 
 B)False

Question 8

Transferring of risk is one of five ways to deal with risk in projects. List THREE others:

Accepted Answer

The answer of Transferring of risk is one of five...

Question 9

Suppose task B follows task A. The likelihood that a problem will occur with task A is 0.5, and the time to correct the problem would be 2 months. The likelihood that a problem will occur with task B is 0.2, and the time to correct the problem would be 3 months. The risk consequence of both activities combined is (circle one):

Accepted Answer

A)  3.5 months 
B)  5.7 months 
C)  1.6 months 
D)  cannot be determined 
A)  3.5 months 
B)  5.7 months 
C)  1.6 months 
D)  cannot be determined

Question 10

Statement: An "acceptable level of risk" in a project is a matter of judgement.

Accepted Answer

A) True 
 B)False

Question 11

Match each of the following definition with the correct terms:
-____ Specifies ways to identify and deal with project risks.

Accepted Answer

A)  risk profile 
B)  risk officer 
C)  risk reserve 
D)  risk management plan 
A)  risk profile 
B)  risk officer 
C)  risk reserve 
D)  risk management plan

Question 12

Statement: To develop a contingency plan, it is best to wait until a problem develops, then create the plan that best addresses it.

Accepted Answer

A) True 
 B)False

Question 13

Match each of the following definition with the correct terms:
-____ Specifies the likelihood, impact, and consequence of each risk.

Accepted Answer

A)  risk profile 
B)  risk officer 
C)  risk reserve 
D)  risk management plan 
A)  risk profile 
B)  risk officer 
C)  risk reserve 
D)  risk management plan

Question 14

Which of the following are common techniques for pinpointing risks in projects (circle all that apply):

Accepted Answer

A)  SOW. 
B)  Work breakdown structure. 
C)  Responsibility matrix. 
D)  Process flowcharts. 
E)  Documents from prior projects. 
A)  SOW. 
B)  Work breakdown structure. 
C)  Responsibility matrix. 
D)  Process flowcharts. 
E)  Documents from prior projects.

Question 15

Risk management includes (circle all that apply):

Accepted Answer

A)  Setting procedures for accurate, complete project documentation. 
B)  Establishing good communication so the project manager is kept informed of emerging problems. 
C)  Establishing reward systems so workers are well paid and motivated. 
D)  Establishing procedures to continuously monitor risks and updating the risk plan. 
E)  Setting penalties to ensure that things don't go wrong. 
A)  Setting procedures for accurate, complete project documentation. 
B)  Establishing good communication so the project manager is kept informed of emerging problems. 
C)  Establishing reward systems so workers are well paid and motivated. 
D)  Establishing procedures to continuously monitor risks and updating the risk plan. 
E)  Setting penalties to ensure that things don't go wrong.

Question 16

A system prototype is (circle all that apply):

Accepted Answer

A)  A complete working system that has all of the functional capabilities of the project end-item system. 
B)  A special font used in project documents. 
C)  Used for testing and verifying the design of the end-item system. 
D)  A software package for project planning and budgeting. 
E)  The final, completed version of the end-item system. 
A)  A complete working system that has all of the functional capabilities of the project end-item system. 
B)  A special font used in project documents. 
C)  Used for testing and verifying the design of the end-item system. 
D)  A software package for project planning and budgeting. 
E)  The final, completed version of the end-item system.

Question 17

A cause and effect diagram is ordinarily used to identify (circle all that apply):

Accepted Answer

A)  Potential sources (hazards) for a given risk. 
B)  A potential risk that might result from a number of hazards. 
C)  The probability that a risk will occur. 
A)  Potential sources (hazards) for a given risk. 
B)  A potential risk that might result from a number of hazards. 
C)  The probability that a risk will occur.

Question 18

Statement: The analogy technique for identifying risks works best when there is a documented history of previous, similar projects to review.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the first step in managing risks (circle one):

Accepted Answer

A)  Include in the budget funds to cover the risks. 
B)  Identify ways to reduce the risks. 
C)  Identify the risks. 
D)  Prepare a contingency plan for every project activity. 
A)  Include in the budget funds to cover the risks. 
B)  Identify ways to reduce the risks. 
C)  Identify the risks. 
D)  Prepare a contingency plan for every project activity.

Question 20

Statement: Projects in which activities are intricately interconnected are inherently less risky than projects wherein activities are independent.

Accepted Answer

A) True 
 B)False

Statement: The principle of risk transfer uses contractual incentives or penalties to shift the risk from one party to another.

Circle all that are true:

Statement: Not every project requires a comprehensive risk analysis and risk management plan.

Statement: In general, a larger variance in the estimated duration time or cost for an activity represents greater risk for that activity.

Match each of the following definition with the correct terms: -____ A buffer resource for dealing with a risk if it occurs.

If the risk likelihood is 0.4, the risk impact is 6.0, the risk consequence is (circle one):

Statement: In development projects, attempts to avoid risk will tend to increase the opportunities and payoff.

Transferring of risk is one of five ways to deal with risk in projects. List THREE others:

Statement: An "acceptable level of risk" in a project is a matter of judgement.

Match each of the following definition with the correct terms: -____ Specifies ways to identify and deal with project risks.

Statement: To develop a contingency plan, it is best to wait until a problem develops, then create the plan that best addresses it.

Match each of the following definition with the correct terms: -____ Specifies the likelihood, impact, and consequence of each risk.

Which of the following are common techniques for pinpointing risks in projects (circle all that apply):

Risk management includes (circle all that apply):

A system prototype is (circle all that apply):

A cause and effect diagram is ordinarily used to identify (circle all that apply):

Statement: The analogy technique for identifying risks works best when there is a documented history of previous, similar projects to review.

Which of the following is the first step in managing risks (circle one):

Statement: Projects in which activities are intricately interconnected are inherently less risky than projects wherein activities are independent.

What Is Project Management

Systems Approach

Project Life Cycle and Project Conception

Project Definition and System Definition

Project Execution and Closeout

Basic Project Planning Techniques

Project Schedule Planning and Networks

Advanced Project Network Analysis and Scheduling

Cost Estimating and Budgeting

Project Quality Management

Project Procurement Management and Contracting

Project Monitoring and Control

Agile Project Management and Lean

Project Organizational Structure and Integration

Project Roles and Stakeholders

Leadership, Teamwork, and Conflict

Meta-Management of Projects and Program Management

Project Selection and Portfolio Management

International Project Management

Filters

Exam 11: Project Risk Management

Statement: The principle of risk transfer uses contractual incentives or penalties to shift the risk from one party to another.

Circle all that are true:

Statement: Not every project requires a comprehensive risk analysis and risk management plan.

Statement: In general, a larger variance in the estimated duration time or cost for an activity represents greater risk for that activity.

Match each of the following definition with the correct terms: -____ A buffer resource for dealing with a risk if it occurs.

If the risk likelihood is 0.4, the risk impact is 6.0, the risk consequence is (circle one):

Statement: In development projects, attempts to avoid risk will tend to increase the opportunities and payoff.

Transferring of risk is one of five ways to deal with risk in projects. List THREE others:

Statement: An "acceptable level of risk" in a project is a matter of judgement.

Match each of the following definition with the correct terms: -____ Specifies ways to identify and deal with project risks.

Statement: To develop a contingency plan, it is best to wait until a problem develops, then create the plan that best addresses it.

Match each of the following definition with the correct terms: -____ Specifies the likelihood, impact, and consequence of each risk.

Which of the following are common techniques for pinpointing risks in projects (circle all that apply):

Risk management includes (circle all that apply):

A system prototype is (circle all that apply):

A cause and effect diagram is ordinarily used to identify (circle all that apply):

Statement: The analogy technique for identifying risks works best when there is a documented history of previous, similar projects to review.

Which of the following is the first step in managing risks (circle one):

Statement: Projects in which activities are intricately interconnected are inherently less risky than projects wherein activities are independent.

What Is Project Management

Systems Approach

Project Life Cycle and Project Conception

Project Definition and System Definition

Project Execution and Closeout

Basic Project Planning Techniques

Project Schedule Planning and Networks

Advanced Project Network Analysis and Scheduling

Cost Estimating and Budgeting

Project Quality Management

Project Procurement Management and Contracting

Project Monitoring and Control

Agile Project Management and Lean

Project Organizational Structure and Integration

Project Roles and Stakeholders

Leadership, Teamwork, and Conflict

Meta-Management of Projects and Program Management

Project Selection and Portfolio Management

International Project Management

Filters