Deck 9: Managing Project Risk

Question 1

The process of identifying risks to a project and documenting them is called:

A)risk documentation.
B)risk identification.
C)risk elaboration.
D)risk management.

Answer 1

B

Question 2

Risk is the process of monitoring identified risks for change and controlling those changes.

A)assessment
B)monitoring and control
C)execution
D)management

Answer 2

B

Question 3

are risks that remain after avoidance, transfer, or mitigation strategies have been applied.

A)Outstanding risks
B)Enduring risks
C)Remaining risks
D)Residual risks

Answer 3

D

Question 4

is a risk response strategy in which risks are simply accepted and contingency strategies are planned.

A)Risk acceptance
B)Risk contingency planning.
C)Risk adoption
D)Risk response

Question 5

During initiation, risk most often occurs in the stage.

A)project integration
B)project selection
C)project initiation
D)project evaluation

Question 6

The formal record listing all project risks, explaining the nature of the risk, and management of the risk is called:

A)risk register.
B)risk record.
C)risk list.
D)risk file.

Question 7

Which of the following is NOT a risk management process as identified by the PMBOK guide?

A)Risk management planning
B)Risk identification
C)Risk transference
D)Risk response planning

Question 8

Which of the following is NOT a decision technique used during quantitative risk analysis?

A)Setting realistic targets in terms of scope, cost, and schedule
B)Identifying the most problematic project requirements in terms of scope
C)Identifying the most salient risk in terms of the project
D)Risk quantification in terms of additional scheduling and cost needs

Question 9

A_________ is a documented plan for risk response.

A)risk response register
B)risk document
C)risk response plan
D)risk management plan

Question 10

Which of the following is NOT among the four types of risk specifically associated with IS projects?

A)Finding and assigning skilled personnel
B)Gaining user acceptance
C)Finishing on time and on budget
D)Ongoing changes in technology

Question 11

is a diagramming technique used to evaluate courses of action in terms of their potential cost and benefits relative to other courses of action.

A)Simulation
B)Decision tree analysis
C)Tornado analysis
D)EMV analysis

Question 12

is a risk response strategy in which steps are taken to mitigate risks.

A)Risk mitigation
B)Risk reduction
C)Risk avoidance
D)Risk minimization

Question 13

Risk is concerned with the consequences of the occurrence of a certain risk.

A)impact
B)strength
C)probability
D)likelihood

Question 14

is the analysis of the probability of occurrence and impact of risk on project objectives using numerical techniques.

A)Quantitative risk analysis
B)Probability/impact risk rating matrix
C)Impact/likelihood risk rating matrix
D)Qualitative risk analysis

Question 15

The assessment of the quality of the data used to assess risk is called:

A)project assumption testing.
B)risk data quality assessment.
C)risk assessment data testing.
D)risk data precision estimation.

Question 16

The overall plan used to outline risks and the strategies used to manage them is called:

A)risk response plan.
B)risk management plan.
C)risk baseline.
D)risk outline.

Question 17

is a risk response strategy designed to transfer risk to another party, often through the use of contracts.

A)Risk mitigation
B)Risk transference
C)Risk removal
D)Risk related contractual agreements

Question 18

Risk management planning meetings should be attended by:

A)senior managers.
B)stakeholders.
C)project team leaders.
D)all of the above.

Question 19

is a tool used to determine whether important technical milestones are being met.

A)Technical milestone measurement
B)Technical milestone review
C)Technical performance measurement
D)Technical performance review

Question 20

The process of developing methods for responding to project risks is called:

A)risk mitigation planning.
B)risk reaction planning.
C)risk response planning.
D)risk management.

Question 21

is a technique to examine the potential impact of specific risks to a project.

A)Decision tree analysis
B)Impact analysis
C)Risk analysis
D)Sensitivity analysis

Question 22

The most well- known simulation technique is called:

A)Bellagio analysis.
B)Monte Carlo analysis.
C)Monaco analysis.
D)Venetian analysis.

Question 23

All of the following are elements of a risk response plan EXCEPT:

A)a list of actions to be used to implement the risk response strategies.
B)the roles and responsibilities of any risk owners.
C)budget and schedule information in terms of risk response.
D)the roles and responsibilities of project stakeholders.

Question 24

Tornado analysis is a form of:

A)EMV analysis.
B)graphical analysis.
C)sensitivity analysis.
D)simulation.

Question 25

Changing industry standards are an example of:

A)external risks.
B)project management risks.
C)organizational risks.
D)technical, quality, or performance risks.

Question 26

The systematic approach to planning the risk management activities of a given project is called:

A)risk response planning.
B)risk mitigation planning.
C)risk management planning.
D)risk identification.

Question 27

Poor project planning is an example of:

A)project management risks.
B)technical, quality, or performance risks.
C)organizational risks.
D)external risks.

Question 28

is a statistical technique that captures the average value of potential projects by analyzing the likelihood of possible project outcomes as well as each outcome's financial consequences.

A)Simulation
B)EMV analysis
C)Decision tree analysis
D)Tornado analysis

Question 29

Events that serve as early warnings of risk are called:

A)actuators.
B)warnings.
C)triggers.
D)risk advisories.

Question 30

is a risk response strategy designed to avoid potential project risks.

A)Risk avoidance
B)Risk mitigation
C)Risk transference
D)Risk acceptance

Question 31

are risks resulting from the application of a risk response strategy.

A)Secondary risks
B)Resultant risks
C)Resulting risks
D)Derived risks

Question 32

is a technique used to perform what- if analyses to determine the impact of a given situation on a project objective.

A)EMV analysis
B)Tornado analysis
C)Simulation
D)Decision tree analysis

Question 33

are reviews designed to review existing risk activities and to monitor any changes to the project.

A)Project risk response audits
B)Periodic risk assessments
C)Project risk assessments
D)Periodic project risk reviews

Question 34

Inconsistent goals are an example of:

A)project management risks.
B)organizational risks.
C)external risks.
D)technical, quality, or performance risks.

Question 35

Risk management are used to provide organizational standards for project risk management.

A)schedules
B)matrices
C)templates
D)plans

Question 36

is a technique used to analyze project risk in terms of its probability of occurrence and its impact on project outcomes.

A)Probability/impact risk rating matrix
B)Impact/likelihood risk rating matrix
C)Qualitative risk analysis
D)Quantitative risk analysis

Question 37

is the establishment of probabilities regarding both the impact and the likelihood of specific risk occurrence.

A)Impact/likelihood analysis
B)Qualitative risk analysis
C)Probability/impact analysis
D)Quantitative risk analysis

Question 38

A technique used during qualitative risk analysis to test the assumptions made during risk identification is called:

A)risk assumption testing.
B)project assumption testing.
C)risk quality assessment.
D)project quality testing.

Question 39

The review of organizational information to aid during risk identification is called:

A)project file review.
B)risk review.
C)reviews of published information.
D)documentation review.

Question 40

Project team members responsible for specific risk activity decisions are called:

A)risk mitigators.
B)risk deciders.
C)risk managers.
D)risk owners.

Question 41

Periodic risk response audits are designed to evaluate the effectiveness of _________and risk owners.

Question 42

_________involves the establishment of probabilities regarding both the impact and the likelihood of specific risk occurrence.

Question 43

It is important to plan a risk management strategy that __________ the type of risk that may be encountered along with the importance of the project to the organization.

Question 44

_________is the process of developing methods for responding to risks.

Question 45

_________is a risk response strategy in which risks are simply accepted and contingency strategies are planned.

Question 46

The risk _________is a formal record listing all project risks, explaining the nature of the risk and management of the risk.

Question 47

Periodic project risk reviews are designed to review existing_________ and to monitor any changes to the project.

Question 48

are designed to evaluate the effectiveness of risk response strategies and risk owners.

A)Project risk response audits
B)Project risk assessments
C)Periodic project risk reviews
D)Periodic risk assessments

Question 49

A graphical depiction of EMV can be captured in a_________ .

Question 50

A __________ matrix is used analyze project risk in terms of its probability of occurrence and its impact on project outcomes.

Question 51

_________graphically represent potential problems while accounting for causal influences, time, and other relationships between project activities and outcomes.

Question 52

A _________is a documented plan for risk response.

Question 53

_________is a risk response strategy in which steps are taken to mitigate project risk.

Question 54

Legal events are an example of:

A)external risks.
B)technical, quality, or performance risks.
C)project management risks.
D)organizational risks.

Question 55

Risk _ is concerned with the likelihood that a certain risk will occur.

A)likelihood
B)probability
C)impact
D)strength

Question 56

Diagramming tools commonly used during risk identification include:

A)influence diagrams.
B)cause and effect diagrams.
C)system or process flow charts.
D)all of the above.

Question 57

Risk identification consists of identifying potential risks to a project and_________ .

Question 58

Project risk is an uncertain event or condition that, if it occurs, has a effect on a project objective.

A)positive or negative
B)negative
C)positive
D)devastating

Question 59

Conflicting priorities among users is an example of_________ .

Question 60

Information gathering techniques commonly used during risk identification include:

A)Delphi technique.
B)interviewing.
C)brainstorming.
D)all of the above.

Question 61

_________are those risks that remain after avoidance, transfer, or mitigation strategies have been applied.

Question 62

_________is used to test the assumptions made during risk identification.

Question 63

Risks associated with ongoing changes _________are unique to IS projects.

Question 64

_________is a term for any contracts for the purpose of risk transference during the project.

Question 65

_________depict the interrelations among project activities and can be used to help managers determine the risks associated with those interrelations.

Question 66

_________is a statistical technique that captures the average value of potential projects by analyzing the likelihood of possible project outcomes as well as each outcome's financial consequences.

Question 67

A tornado analysis shows, in descending order, which risk causes the_________ on some outcome.

Question 68

_________is a technique used to examine the potential impact of specific risks to a project.

Question 69

_________involves a systematic approach to planning the risk management activities of a given project.

Question 70

Project risk is an uncertain event or condition that, if it occurs, has a _________effect on a project objective.

Question 71

Tornado analysis is an example of a _________.

Question 72

Risk owners are project team members responsible for specific_________ .

Question 73

Environmental concerns are an example of _________.

Question 74

Changing industry standards are an example of __________ .

Question 75

_________are those risks resulting from the application of a risk response strategy.

Question 76

Risks associated with poor project planning are an example of_________ .

Question 77

_________are events that serve as early warnings of risks.

Question 78

_________is a strategy designed to avoid potential risks.

Question 79

Brainstorming, the Delphi technique, or interviewing are _________used during risk identification.

Question 80

Risk management _________are used to provide organizational standards for project risk management.