Deck 8: Managing Risk

Question 1

_________ 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

Answer 1

A

Question 2

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.

Answer 2

True

Question 3

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.

Answer 3

D

Question 4

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

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

Question 5

_________ 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 6

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 7

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

Question 8

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 9

_________ 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 10

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

Question 11

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

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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.

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

______ 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 22

_______ 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 23

__________ 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 24

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 25

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 26

________ 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 27

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 28

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 29

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 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 31

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 32

A common approach to identifying the sources of risks is

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

Question 33

_________ 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 34

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 35

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 36

_______ 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 37

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 38

________ 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 39

________ 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 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

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

Question 42

_______ 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 43

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

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

Question 44

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 45

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