Deck 10: Project Risk Planning

Question 1

When complete,the risk register presents the results of both qualitative and quantitative risk analysis as well as risk response planning.

Answer 1

True

Question 2

The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project.

Answer 2

False

Question 3

Risk response strategy decisions should reflect a thorough understanding of the priorities that key stakeholders have relative to project objectives.

Answer 3

True

Question 4

Risk response strategies such as acceptance and conducting further research apply to both threats and opportunities.

Question 5

The process of deciding how to approach,plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM).

Question 6

The primary questions project teams use in qualitative risk analysis are "What is the nature of this risk?" and "Who will be responsible for addressing it?".

Question 7

A risk management plan should define who has responsibility for causing each risk and hold the responsible party directly accountable for developing an appropriate solution.

Question 8

In some cases,project teams will elect to reduce a threat rather than eliminate it because the effort to completely eliminate a threat is unjustified.

Question 9

The primary output of risk identification is the Risk Identification Matrix (RIM).

Question 10

It is impossible to remove all sources of risk on a project.

Question 11

Perform Quantitative Risk Analysis is the process of numerically analyzing the effect on overall project objectives of identified risks.

Question 12

When the impact of an event is negative,it is considered a risk;when the impact is positive,the event is considered an opportunity.

Question 13

The process of determining which risks might affect the project and documenting their characteristics is known as risk charting.

Question 14

Plan Risk Responses focuses on developing options and actions for every identified risk.

Question 15

Generally,once risks have been identified and analyzed,the project team decides how to handle each risk.

Question 16

Sometimes the risks posed by a project are so great that an appropriate risk response is to not perform the project at all.

Question 17

The risk register is a living document and new risks can be added as they are identified.

Question 18

A risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholder priorities.

Question 19

The risk management plan is the document that describes how project risk management will be structured and performed on a project.

Question 20

Perform Quantitative Risk Analysis is the process of prioritizing risks for subsequent further analysis or action by assessing and combining their probability and impact.

Question 21

All of the following are among the classic risk response strategies EXCEPT:

A) share a threat
B) transfer a threat
C) mitigate a threat
D) avoid a threat

Question 22

Risk response strategies such as mitigation and exploitation apply to both threats and opportunities.

Question 23

Which of the following describes the effective use of a risk register?

A) The final risk register is typically completed during risk identification.
B) Items such as the probability of occurrence and impact are typically added to the risk register subsequent to risk identification.
C) The risk register includes only the risk, a description and the appropriate category.
D) The project manager is the owner of all risk events and triggers

Question 24

All of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT:

A) It enables project managers to eliminate, or reduce, the impact of some threats.
B) It enables the project manager to identify and eliminate all risks
C) It facilitates communication with project stakeholders.
D) It enables project managers to capitalize on some opportunities.

Question 25

Which of the following accurately describes risk in project management?

A) The impact of risk may be positive or negative.
B) Some projects are void of risk.
C) Risk assessment should remain objective and uninfluenced by stakeholder priorities.
D) Project managers should always be risk averse

Question 26

All of the following criteria can be used to categorize project risks EXCEPT:

A) whether the risk is a known known
B) the project objective that may be impacted by the risk
C) whether the risk is internal or external to the performing organization
D) the phase of the project in which the risk may occur

Question 27

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:

A) develop a flow chart that shows how data flows from one person to another
B) conduct a root cause analysis
C) examine triggers that a risk is about to occur
D) list all risks in a risk register

Question 28

Which of the following activities illustrates a risk response strategy designed to research a threat or an opportunity?

A) establish triggers and update them frequently
B) establish time or cost contingencies
C) adopt a prototype to learn more about a candidate solution
D) identify a risk owner to each high priority risk

Question 29

Which of the following activities illustrates a risk response strategy designed to mitigate a threat?

A) adopt a fixed price type contract
B) train a team member to cover for a potentially unavailable key resource
C) change the project plan or scope
D) develop change control procedures

Question 30

All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT:

A) Large, complex and risky projects stand to benefit from the additional rigor of quantitative risk analysis techniques.
B) Quantitative techniques are used when it is critical to predict the probability of completing a project on time or within budget with confidence.
C) Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible.
D) Monte Carlo Simulation and Fault Tree Analysis are examples of useful quantitative risk analysis techniques.

Question 31

When a project team elects to purchase insurance,or adopts a fixed price contract with a vendor,or hires external experts - it is demonstrating which of the following risk response strategies?

A) avoid a threat
B) transfer a threat
C) mitigate a threat
D) assume a threat

Question 32

Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review?

A) review the project schedule to determine if certain people are overloaded
B) review previous projects to verify that each current assumption is correct
C) review the communication plan to determine where poor communications could cause a problem
D) review of sunk costs to determine project continuance

Question 33

Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis?

A) Team members assess the probability of occurrence and severity of impact for identified risks.
B) Team members develop contingency plans for even minor risks to avoid adverse impacts to project objectives.
C) Team members identify potential risk events.
D) Team members define how to conduct risk management activities for the project.

Question 34

Risk is often considered in terms of impact to project success. Which of the following is a valid measure of project success?

A) meeting the technical requirements
B) customer related measures such as customer satisfaction
C) measures related to the firm's future including market share and commercial success
D) all of these

Question 35

Which of the following describes the appropriate use of a cause and effect diagram to support project risk analysis?

A) The project team begins by identifying the risk as the primary cause to be examined.
B) Once the effects are understood, the team can use them to serve as triggers.
C) It is often easier to alter the effect by changing the underlying cause.
D) Team members are encouraged to keep asking "When?"

Question 36

Which of the following quantitative risk analysis techniques relies upon the calculation of net present value to determine if a project should be pursued or abandoned?

A) Failure Mode and Effects Analysis (FMEA)
B) Fault Tree Analysis
C) Financial Engineering
D) Sunk Cost Analysis

Question 37

All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT:

A) reviewing risk checklists
B) deriving lessons learned
C) interviewing stakeholders
D) brainstorming among team members and subject matter experts

Question 38

All of the following describe an appropriate application of Plan Risk Responses in project management EXCEPT:

A) Risk response planning should address both opportunities and threats.
B) Often multiple strategies are identified for a single risk.
C) The expectations of the sponsor and key stakeholders should influence the risk responses that are developed.
D) Responses should be created for every identified project risk

Question 39

Which of the following accurately describes contemporary methods of risk prioritization in project management?

A) Risk prioritization is generally based on the probability of occurrence and severity of impact of each identified risk.
B) Some organizations place a higher priority on risks that are likely to happen soon.
C) Some organizations call attention to the risks that are difficult to detect.
D) All of these

Question 40

Figure 10-1 Excerpt from Internet Project Risk Register
Consider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses?

A) A - project requires new technology and support structure
B) B - web infrastructure lacks sufficient transaction capacity
C) C - IS resources are spread too thin
D) D - The intranet site suffers a security breach

Question 41

Identify five common project risk strategies employed to address threats that your project may face. Give an example of each.

Question 42

All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT:

A) increase the probability of the opportunity occurring
B) increase the impact of the opportunity
C) purchase insurance
D) set up an organization to pursue the opportunity

Question 43

All of the following activities are appropriate upon completion of risk response planning EXCEPT:

A) The risk register should be updated to reflect the risk response strategies.
B) The risk register should be baselined after planning is completed, and should not be updated once the project is in flight.
C) The risk register should be updated to reflect any changes to the project schedule, budget or resource assignments.
D) A single person should be assigned as the owner of each risk response strategy.

Question 44

Identify and describe 3 risk identification techniques. Which of these techniques do you believe to be the most effective and why?

Question 45

How would you approach the prioritization of the risk events identified by your project team and subject matter experts? How would you use the results of this prioritization effort to guide the development of risk responses?