Deck 8: Managing Project Risk

Question 1

It never pays to ignore an element of project risk.

Answer 1

False

Question 2

Qualitative risk analysis has as one of its strengths the ability to include subjective analysis based on experience and judgment.

Answer 2

True

Question 3

Nominal Group Technique is a free form,unstructured process similar to Brainstorming.

Answer 3

False

Question 4

The PMBOK definition of project risk suggests that a systematic process is needed to effectively manage the risk of a project.

Question 5

Triggers or flags in the form of metrics should be identified to draw attention to a particular risk when it occurs.

Question 6

In general,because of the similarities in IT projects,one can manage all projects and risks in the same manner.

Question 7

The fishbone or Ishikawa diagram is a form of cause and effect analysis diagramming.

Question 8

The area under the normal distribution curve that lies within 2 standard deviations of the mean plus or minus)includes about 68% of all the values.

Question 9

The concept of expected value rests on the notion of a probability-weighted summation of component parts.

Question 10

Since risk arises from uncertainty,there can be no such category as known risks.

Question 11

Failure to follow a formal risk management plan will often cause organizations to be reactive and find themselves in a state of perpetual crisis,a condition known as crisis management.

Question 12

Learning cycles can be used as a tool for identifying threats and opportunities.

Question 13

Effective project risk management requires that each risk have an owner.

Question 14

Since IT projects are developed in an environment that changes so rapidly and so extensively,there is little value in using past projects to guide our risk assessment of new ones.

Question 15

The goal of a sound risk management is to completely avoid all risk.

Question 16

The deployment of a specific risk management strategy is in part a function of risk tolerance levels of the stakeholders.

Question 17

Unknown-unknown risks are residual risks that we cannot even imagine happening.

Question 18

Project risk management focuses solely on the downside of risk that results from unexpected problems or threats.

Question 19

The best time to plan for risk is during the project execution phase when risk can be assessed most accurately.

Question 20

Sensitivity analysis is used to determine the joint effects of multiple risky tasks,while Monte Carlo Simulation is used to measure which individual tasks pose the greatest project risk.

Question 21

_____ is an interim lessons learned to determine how the risk was handled.

A)risk identification
B)risk assessment
C)risk planning
D)risk response
E)risk evaluation

Question 22

The first step in managing IT project risk is _____.

A)risk identification
B)risk assessment
C)risk planning
D)risk monitoring and control
E)risk evaluation

Question 23

The IT Project Risk Management Processes include all of the following except:

A)Plan Risk Management
B)Identify Risks
C)Risk Elimination
D)Perform Qualitative Risk Analysis
E)Monitor and Control Risks

Question 24

_____requires determining the problem,or cause,of the risk.

A)risk identification
B)risk assessment
C)risk planning
D)risk monitoring and control
E)risk evaluation

Question 25

Successful risk management requires _____

A)misunderstanding the benefits of risk management
B)inadequate time for risk identification
C)use of a non-standard approach to assess risk
D)stakeholder responsibility
E)occasional monitoring of risks to ensure compliance

Question 26

Risks may be positive or negative.For a positive risk,a project manager would want to _____.

A)accept the risk
B)share ownership
C)avoid the risk
D)reduce the impact of the risk
E)transfer the risk

Question 27

_____ is an uncertain event that,if it occurs,has a positive or negative effect on project objectives.

A)Risk management
B)Risk response
C)Project risk
D)Risk plan
E)Risk control

Question 28

_____ is the core layer in the IT Project Risk Identification Framework.

A)Measurable Organizational Value
B)Project objectives
C)Risk sources
D)Internality / Externality
E)Known / Unknown

Question 29

_____ involves development of a risk management plan.

A)Plan Risk Management
B)Identify Risks
C)Perform Quantitative Risk Analysis
D)Plan Risk Responses
E)Monitor and Control Risks

Question 30

Identifying what you know,what you think you know,and things you need to find out would be activities most closely associated with:

A)Learning Cycles
B)Brainstorming
C)Nominal Group Technique
D)Delphi Technique
E)Cause-and-Effect Diagrams

Question 31

_____determines how to deal with the occurrence of a risk.

A)risk identification
B)risk assessment
C)risk planning
D)risk monitoring and control
E)risk strategies

Question 32

_____involves determining the likelihood and project impact of a risk.

A)risk identification
B)risk assessment
C)risk planning
D)risk monitoring and control
E)risk evaluation

Question 33

Once a risk is made known,_____ will execute the planned risk strategy.

A)risk identification
B)risk assessment
C)risk planning
D)risk response
E)risk strategies

Question 34

Through _____,the project manager will scan the project environment to watch for risks as they may arise.

A)risk identification
B)risk assessment
C)risk planning
D)risk monitoring and control
E)risk strategies

Question 35

_____ are the processes of conducting risk management planning,identification,analysis,response planning,and monitoring and control on a project.

A)Project risk management
B)Project risk response
C)Project risk planning
D)Project risk analysis
E)Project risk control

Question 36

_____ involves developing procedures and techniques to reduce the threat of risks and enhance the likelihood of opportunities.

A)Plan Risk Management
B)Identify Risks
C)Perform Qualitative Risk Analysis
D)Plan Risk Responses
E)Monitor and Control Risks

Question 37

_____ involves deciding which risks can impact the project.

A)Plan Risk Management
B)Identify Risks
C)Perform Quantitative Risk Analysis
D)Plan Risk Responses
E)Monitor and Control Risks

Question 38

Gaining consensus from a group of experts would be most closely associated with:

A)Learning Cycles
B)Brainstorming
C)Nominal Group Technique
D)Delphi Technique
E)Cause-and-Effect Diagrams

Question 39

_____ provides an early warning system to monitor identified risks and any new risks.

A)Plan Risk Management
B)Identify Risks
C)Perform Qualitative Risk Analysis
D)Plan Risk Responses
E)Monitor and Control Risks

Question 40

_____ involves developing a probabilistic model for understanding and responding to identified risks.

A)Plan Risk Management
B)Identify Risks
C)Perform Quantitative Risk Analysis
D)Plan Risk Responses
E)Monitor and Control Risks

Question 41

In a normal distribution we would expect to find _______ of all values with in + or - 1 standard deviation.

A)13%
B)34%
C)68%
D)95%
E)99%

Question 42

_____ randomly generates specific values for a variable with a specific probability distribution.

A)Discrete Distribution
B)Normal Distribution
C)Pert Distribution
D)Monte Carlo Simulation
E)Binomial Distribution

Question 43

Which of the following distributions has mean which is equal to a + 4b +c)/ 6 where a,b,and c are denote optimistic,most likely,and pessimistic estimates respectively?:

A)Discrete Distribution
B)Normal Distribution
C)Pert Distribution
D)Triangular Distribution
E)Binomial Distribution

Question 44

What are the seven IT project risk management processes?

Question 45

A _____ identifies threats and opportunities in the external environment as well as organizational strengths and weaknesses .

A)Learning Cycle
B)SWOT Analysis
C)Nominal Group Technique
D)Delphi Technique
E)Checklist

Question 46

_____ use only integer or whole numbers,where fractional values are not allowed or would not make sense.

A)Discrete Distribution
B)Normal Distribution
C)Pert Distribution
D)Triangular Distribution
E)Binomial Distribution

Question 47

_____ focuses on root-cause analysis and determining the cause of risks,as well as the effects of risks on the project.

A)Learning Cycles
B)Brainstorming
C)Nominal Group Technique
D)Delphi Technique
E)Cause-and-Effect Diagrams

Question 48

A _____ is a structured tool that identifies risks that have occurred in the past.

A)learning cycle
B)brainstorming session
C)Nominal Group Technique
D)Delphi Technique
E)checklist

Question 49

In which step of the risk planning process does the text say one might decide to transfer project risk to someone else i.e. ,use insurance)?

A)risk planning
B)risk identification
C)risk assessment
D)risk strategies
E)risk monitoring and control

Question 50

_____ determines each identified risk's probability of occurrence and impact on the project.

A)Risk mitigation
B)Risk assessment
C)Risk avoidance
D)Risk analysis
E)Risk monitoring and control

Question 51

Which of the following distributions has mean which is equal to a +b +c)/ 3 where a,b,and c are denote optimistic,most likely,and pessimistic estimates respectively?:

A)Discrete Distribution
B)Normal Distribution
C)Pert Distribution
D)Triangular Distribution
E)Binomial Distribution

Question 52

A structured technique for identifying risks which requires participants to rank and prioritize ideas in round-robin fashion is most closely associated with:

A)Learning Cycles
B)Brainstorming
C)Nominal Group Technique
D)Delphi Technique
E)Cause-and-Effect Diagrams

Question 53

Receiving a much larger than usual gas utility bill because of an early spring cold spell is an example of what type of risk?

A)known risk
B)known-unknown risk
C)unknown-unknown risk
D)known-known
E)none of the above

Question 54

The Payoff Table would be used with which risk assessment technique ?

A)Qualitative Risk Analysis
B)Quantitative Risk Analysis
C)Cause-and- Effect Diagram
D)Simulations
E)Probability Distributions

Question 55

In a normal distribution we would expect to find _______ of all values with in + or - 2 standard deviation.

A)13%
B)34%
C)68%
D)95%
E)99%

Question 56

Initial generation of ideas without evaluation would be most closely associated with:

A)Learning Cycles
B)Brainstorming
C)Nominal Group Technique
D)Delphi Technique
E)Cause-and-Effect Diagrams

Question 57

What is project risk?

Question 58

_____ prioritizes risks so that an effective risk strategy can be formulated.

A)Risk mitigation
B)Risk assessment
C)Risk avoidance
D)Risk analysis
E)Risk monitoring and control

Question 59

What is project risk management?

Question 60

What is meant by crisis management? And why do many organizations find themselves in this mode?

Question 61

Describe how learning cycles can be used to identify IT project risks.

Question 62

What is a Monte Carlo simulation? Describe a situation other than the one used in this chapter)that could make good use of a Monte Carlo simulation.

Question 63

Define and discuss the four risk strategies described in this chapter.

Question 64

What is a risk response plan? What should be included?

Question 65

Why can identifying IT project risks be difficult?

Question 66

What is the Delphi Technique? How can this technique be used to identify IT project risks?

Question 67

What is the purpose of a risk impact table?

Question 68

What is SWOT analysis? How can this technique be used to identify IT project risks?

Question 69

What is a contingency plan?