Exam 7: Risk Management

The construction foreman posted a large sign requiring all work site visitors to don a hard hat and safety glasses.He also purchased copious quantities of both items and made them readily available at the entrance.The foreman is engaged in:

At each phase,the project risk analysis and management program should produce:

To protect his poultry from meteorites,the gentleman farmer made hard hats for each bird and installed a meteor detection system that opened umbrellas throughout the yard if a meteor were detected.The safety of his flock thus assured,the farmer was surprised when he read his latest issue of Risk Management Magazine and discovered that this event was:

You have agreed to paint your neighbor's house a lovely shade of chartreuse for $1500 and discover much to your dismay that the house has a second floor.Now you're faced with the prospect of buying a ladder or scaffolding or a really long handled brush,not to mention the 15 more gallons of paint that will be needed to cover.You won't get another penny for what will surely be increased efforts since your neighbor transferred risk with a(n):

What does change management accomplish and what are the components of an effective change management program?

A method for conducting risk factor identification that generates ideas but doesn't focus on decision making is:

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

Which of these statements about the project risk analysis and management program is BEST?

Risk cannot be transferred because ultimately your own project will suffer the consequences if the event occurs.

The programming division at ABC decides to resurrect the classic Battle of the Network Stars and is understandable concerned about the risk to their own stars,the shows they star on,and their reputation as a purveyor of fine family-oriented entertainment.After a thoughtful assessment of the probabilities and consequences of failure,the team discover that the three probabilities of failure are all equal and the four consequences of failure are all equal.Further,the overall consequence of failure is half the overall probability of failure.The overall risk factor is 0.6;what are the values for the three probabilities and the four consequences?

The PRAM model for risk management proposes different risk management strategies be deployed at various points in the project life cycle.

A project team assesses their primary risk factor's probability of failure with a maturity risk of 0.3,a complexity risk of 0.7,and a dependency risk of 0.8.The probability of failure is:

What are fixed-price contracts and liquidated damages? Which party to the contract bears the burden?

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

Contingency reserves require a construction company to hold back some funds in an account just in case something happens that increases the overall project cost.

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? Maturity 0.7 Cost 0.4 Complexity 0.6 Bchedule 0.6 Dependency 0.8 Reliability 0.8 Performance 0.9

Twenty-thousand dollars was budgeted for the office renovation that had a task contingency multiplier of 1.3.The estimated cost of the task must be:

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.

The consequences of failure categories of cost,schedule,reliability,and performance were believed to be 0.25,0.35,0.45,and 0.55.What is the overall consequence of failure?

Which of these statements about the project risk analysis and management program is BEST?