Deck 8: Managing Risk

Question 1

Addressing risks proactively will increase the chances of accomplishing the project objective.

Answer 1

True

Question 2

Historical information from past projects is another source that can be helpful in identifying possible risks.

Answer 2

True

Question 3

Some level of risk planning should be done during the initiating phase of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project.

Answer 3

True

Question 4

If the risks seem too great, the contractor may decide to not bid on a proposed project.

Question 5

Addressing risks ____ will increase the chances of accomplishing the project objective.

A) reactively
B) inactively
C) hyperactively
D) proactively

Question 6

____ includes determining which risks may adversely affect the project objective and what the impact of each risk might be if it occurs.

A) Risk modification
B) Risk avoidance
C) Risk identification
D) Risk acceptance

Question 7

The project team should not change the estimated impacts of previously identified risks as the project progresses.

Question 8

Managing risk includes taking action to foster the likelihood of occurrence or the impact of such unfavorable events.

Question 9

Waiting for unfavorable events to occur and then reacting to them

A) is part of a well designed response plan.
B) reflects much planning and consideration of consequences.
C) is a cost saving measure by not planning.
D) can result in panic and costly responses.

Question 10

Risk management involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.

Question 11

Waiting for problematic events to occur and then reacting to them can result in panic and costly responses.

Question 12

A risk is an uncertain event that, if it occurs,

A) must be accepted.
B) can jeopardize accomplishing the project objective.
C) must be avoided.
D) helps to achieve the project objective.

Question 13

____ includes taking action to prevent or minimize the likelihood of occurrence or the impact of such unfavorable events.

A) Managing risk
B) Taking chances
C) Identifying the trigger point
D) Naming the person responsible for the risk response plan

Question 14

The risks should be those that are somewhat likely to occur and/or can have a significant positive impact on accomplishing the project objective.

Question 15

With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price.

Question 16

____ involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.

A) Risk response
B) Risk management
C) Risk responsibility
D) Risk acceptance and avoidance

Question 17

The project team can progressively elaborate and identify new risks as more information is known or becomes clear.

Question 18

A risk is an uncertain event that, if it occurs, can jeopardize accomplishing the project objective.

Question 19

Risk identification is determining which risks may adversely affect the development of the project work breakdown structure and what the impact of each risk might be if it occurs.

Question 20

The project manager needs to set the tone for encouraging open and timely discussion of risks among the project team.

Question 21

Risks ____ should be given higher priority because if the risk occurs, it would have a greater impact on the schedule than if it was associated with activities on a path that has a large positive value of total slack.

A) that occur first in the project
B) that affect the most costly activities
C) on the critical path
D) that affect the activities near the end of the project

Question 22

If the risks seem ____, the contractor may decide to not bid on a proposed project.

A) too great
B) within reason
C) acceptable
D) easily mitigated

Question 23

Risks are prioritized based on

A) the likelihood of occurrence and degree of impact.
B) the order they are identified.
C) the gut feeling of the project team.
D) the priorities set in a different project.

Question 24

____ can be to avoid the risk, mitigate the risk, or accept the risk.

A) A risk response plan
B) A risk assessment
C) A risk management strategy
D) A risk impact statement

Question 25

A common approach to identifying the sources of risks is

A) brainstorming.
B) developing a contingency plan.
C) elaboration.
D) evaluating the probability.

Question 26

____ contains the steps for how to mitigate the risk if it should occur during the project.

A) The action trigger
B) The response plan
C) The mitigation plan
D) The degree of impact

Question 27

____ is a defined set of actions to prevent or reduce the likelihood of occurrence or the impact of a risk, or to implement if the risk event occurs.

A) A risk response plan
B) A risk assessment
C) A risk management strategy
D) A risk impact statement

Question 28

____ involves developing an action plan to reduce the likelihood of occurrence or potential impact of each risk, establishing a trigger point for when to implement the actions to address each risk, and assigning responsibility to specific individuals for implementing each response plan.

A) Risk assessment
B) Risk management strategy
C) Risk response planning
D) Risk impact statement

Question 29

To be able to communicate risks to the contractor, sometimes a sponsor identifies major risks for the project in

A) the lessons learned after the project.
B) the project charter when the project is authorized.
C) the contract for service.
D) the project evaluation meeting.

Question 30

____ is a list of the potential outcomes if the risk were to occur.

A) The mitigation plan
B) The priority order
C) The impact of a risk
D) The action trigger

Question 31

____ is the warning flag for when to implement the action plan for the risk.

A) The action trigger
B) The priority order
C) The mitigation plan
D) The degree of impact

Question 32

____ involves determining the likelihood that the risk event will occur and the degree of impact the event will have on the project objective.

A) Priority alignment
B) Responding to a risk
C) Assessing each risk
D) Risk planning

Question 33

A risk assessment matrix is a tool for

A) making a person responsible for the risk.
B) stating if the risk will be avoided, accepted, or mitigated.
C) examining the results of the project.
D) assessing and managing risks.

Question 34

Risks may change as the project progresses and should be reflected in

A) the Risk Assessment Matrix.
B) the action trigger point.
C) the risk response plan.
D) the risk management strategy.

Question 35

____ is a rating of low, medium, or high based upon the expected probability of a risk occurring during the project.

A) The action trigger
B) The priority order
C) The mitigation plan
D) The likelihood of occurrence

Question 36

____ is a rating of low, medium, or high based on the expected level of change in completing the project's objective if the risk were to occur during the project.

A) The action trigger
B) The priority order
C) The mitigation plan
D) The degree of impact

Question 37

Some level of risk planning should be done during ____ of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project.With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price.

A) the planning phase
B) the performing phase
C) the initiating phase
D) the closing phase

Question 38

Project prices and budgets should include ____ to pay for additional costs associated with implementing response plans.

A) a padded budget
B) a contingency or management reserve
C) expenses for other charges in the office to help
D) extra overhead

Question 39

Establishing risk categories may help to identify and evaluate risks.Some categories to help identify risks include all the following except:

A) technical and schedule.
B) cost and human resources.
C) previously identified risks.
D) external factors, sponsor and customer.

Question 40

Risks can be identified by using all the following except:

A) historical information.
B) progressive elaboration.
C) previously identified risks.
D) ignoring potential problems.

Question 41

___ is the possibility that an unwarranted circumstance will occur that can result in some loss.

A) Risk
B) Contingency
C) Anticipated loss
D) Management reserve

Question 42

The most common method of identifying the sources of risks is:

A) work analysis chart
B) network diagram
C) brainstorming
D) initiation reports

Question 43

Establishing risk categories may help to identify and evaluate risks.List some categories to help identify risks.

Question 44

Risk ____ involves identifying, assessing, and responding to project risks in order to minimize the likelihood and impact of the consequences of adverse events on the achievement of the project objective.

A) management
B) assessment
C) identification
D) response generation

Question 45

A defined set of actions to prevent or reduce the likelihood of occurrence or the impact of risk is the

A) risk assessment matrix
B) the action trigger
C) risk identification brainstorming session
D) risk response plan

Question 46

Regularly review and evaluate ____ to determine if there are any changes to the likelihood of occurrence or the potential impact of any of the risks.

A) all risks
B) only those risks of highest priority
C) risks that have yet to be identified
D) risks that have occurred to see if they will happen again

Question 47

____ involves regularly reviewing the risk management matrix throughout the project.

A) Risk assessing
B) Risk planning
C) Risk monitoring
D) Risk avoidance

Question 48

For risks that have occurred in a project, the team should

A) track and document the risks and store the information in lessons learned.
B) expect that the other risks are going to occur so they should increase resources for those tasks impacted.
C) add more resources to the tasks that are impacted by the risk occurring.
D) talk about the risk without recording the minutes of the meeting.

Question 49

This involves taking action to reduce the likelihood that the risk event will occur or reducing the potential impact.

A) Risk identification
B) Avoiding the risk
C) Accepting the risk
D) Mitigating the risk

Question 50

As the project progresses, the project team should

A) expect the risks to remain the same throughout to project.
B) incorporate a new technology system to manage risks even if the system wasn't on their project plan.
C) regularly review the risk management matrix to evaluate any changes.
D) change the project scope just in case the remaining identified risks occur.

Question 51

The agenda for project status review meetings should include an item for:

A) risk assessment
B) risk identification
C) risk monitoring
D) risk contingency matrix

Question 52

Risk management involves identifying, assessing, and responding to project risks to

A) add extra costs to the project
B) pass the expense of the risks to the customer
C) reduce the likelihood of occurrence and their potential impact
D) inform the project team so they can ignore the consequences

Question 53

____ are a good forum for regularly reviewing, updating, and addressing risks.

A) Social gatherings of the team
B) Project meetings
C) Problem solving meetings
D) Project planning meetings

Question 54

Track and document which risks ____ and the impact of those risks.

A) were avoided
B) had the highest priority
C) may affect the critical path
D) actually occurred

Question 55

Which of the following statements about risks is true?

A) Risks only occur in projects that are long term projects.
B) Risks are higher in long term projects.
C) The consequence of a risk can be positive for the project.
D) Only risks that impact the critical path of the project are important to mitigate.

Question 56

The _______ should be those that are somewhat likely to occur and/or can have a significant negative impact on accomplishing the project objective.

A) risk response plans
B) action triggers
C) impacts
D) risks

Question 57

A good forum for regularly reviewing, updating, and addressing risks is

A) phone conversation with project stakeholders.
B) project meeting.
C) during social events to get inside information from others.
D) the meeting for addressing the risk after it has occurred.

Question 58

The trigger point in the risk response plan is when the project team should

A) implement the action plan for each risk.
B) stop working on the project because it cannot be completed.
C) avoid the risk by moving onto the next activity.
D) brainstorm for ideas on how to manage the risk.

Question 59

____ risk involves determining the likelihood that the risk event will occur and the degree of impact the event will have on the project objective.

A) Assessing
B) Identifying
C) Response planning
D) Monitoring

Question 60

A realistic approach to managing risk is to

A) wait until the risk occurs then manage it.
B) brainstorm possible risks and assess their likelihood of occurrence and level of impact.
C) determine all the possible risks that could occur and add in contingencies into the project.
D) have a staff member assigned to only work on mitigating risks for projects.

Question 61

Risk response planning involves all the following except

A) developing an action plan to reduce the likelihood of occurrence or potential impact of each risk.
B) establishing a trigger point for when to implement the actions to address each risk.
C) assigning responsibility to specific individuals for implementing each response plan.
D) brainstorming the possible risks that could occur in the project.

Question 62

Which of the following is not an example of a risk?

A) technology advances make the technology planned obsolete before project completion.
B) non-availability of resources with the needed skills.
C) encountering a large amount of rock while digging the foundation for a construction project.
D) have signs made to give additional directions to attendees.

Question 63

A possible action trigger for rain or snow on the day of an event is

A) reserve an indoor space for the event.
B) low attendance at the event.
C) review the weather report two days before the event.
D) move the event to the rain date scheduled.

Question 64

The possible response plan for vendor delay in delivery of critical equipment is

A) check the order status one week before delivery needed.
B) project task completion delayed until equipment arrives.
C) contact secondary vendor to supply the part.
D) financial loss due to the delay.

Question 65

A risk is

A) an uncertain event that, if it occurs, can jeopardize accomplishing the project objective.
B) something that increases the susceptibility of occurrence.
C) venture capital to support a project.
D) a harmless event or activity.

Question 66

The possible impact for rain or snow on the day of an event is

A) reserve an indoor space for the event.
B) low attendance at the event.
C) review the weather report two days before the event.
D) move the event to the rain date scheduled.

Question 67

When assigning responsibility for a risk, it is best to

A) assign responsibility to more than one person.
B) assign responsibility to a single person.
C) assign responsibility to the project team.
D) not assign responsibility to those risks with low risk of occurrence.

Question 68

Risks can be prioritized based on

A) the likelihood of occurrence and degree of impact.
B) the project team member that identified the risk.
C) the amount of time the project team has to manage the risk.
D) the amount of funds planned to manage the risk.

Question 69

Risks on the critical path should be

A) given lower priority than those activities with positive total slack.
B) given equal priority than those activities with positive total slack.
C) given higher priority than those activities with positive total slack.
D) given higher priority than those activities with no total slack.

Question 70

A contingency or management reserve to pay for additional costs associated with implementing response plans should be

A) absorbed as a cost of doing business.
B) planned into the project prices and budgets.
C) requested to be paid by the project sponsor in addition to the costs of doing the project.
D) added to the budget of the next project with the same sponsor.

Question 71

A risk response plan can

A) ignore the risk or pay for the risk.
B) examine the risk.
C) avoid the risk, mitigate the risk, or accept the risk.
D) record the risk for lessons learned.

Question 72

How do the initial risks identified change as the project progresses?

A) The risks are the same as the project progresses.
B) Some risks at the start of the project are no longer risks as the project progresses.
C) The sponsor identified all the risks while writing the project charter.
D) The risks always increase as the project progresses.