Deck 6: Risk Management

Question 1

Overly optimistic forecasts including project plans result from external risks.

Answer 1

False

Question 2

A potential benefit of risk identification activities is that management can use the results to evaluate the performance of individuals.

Answer 2

False

Question 3

Risks can be positive.

Answer 3

True

Question 4

A work breakdown structure is a hierarchical structure of potential risk sources that can be used effectively to structure,identify,and understand risks.

Question 5

Risk identification should address every possible negative event.

Question 6

Delivery challenges,scaling of product or service,and complexity in processes are examples of functional risk.

Question 7

Risk is the degree of probability of a loss or failure.

Question 8

Project risks can be classified as internal or external.

Question 9

Risk management means that the project manager and upper management need to have realistic expectations of the people who will be doing the work.

Question 10

Labor strikes and walkouts are examples of external risks.

Question 11

Checklists are never complete;they are ever growing and expansive.

Question 12

Risk factor refers to the overall risk or exposure of the project at a particular timeframe.

Question 13

Checklists are one of several common tools and techniques used for developing a list of project risks.

Question 14

When using an RBS for a software development project,development risks relate to development,organization,and work environment.

Question 15

When using an RBS for a construction project,clients,project team,targets,budget,and strategy contribute to environmental risks.

Question 16

With careful planning,project risk can be reduced to zero.

Question 17

Equipment risks are external risks.

Question 18

Not meeting time,scope,and resource requirements are examples of external risks.

Question 19

Project risk and professional risk are two risk categories pertaining to project managers.

Question 20

A project has more risks later in its lifespan,as persisting risks become more lethal and detrimental in later phases.

Question 21

On an RBS for a software development project,product risks are related to

A)corporate and stakeholders.
B)requirements and design.
C)cultural and economic.
D)project team and control.

Question 22

For a construction project,ill-defined responsibilities are associated with the

A)team factor of the subcontractors category.
B)site factor of the environment category.
C)tactics factor of the subcontractors category.
D)control factor of the project category.

Question 23

A hierarchical structure of potential risk sources that can be used effectively to structure,identify,and understand risks best defines

A)opportunity breakdown structure.
B)project work breakdown structure.
C)risk breakdown structure.
D)risk iteration structure.

Question 24

Accepting risk,transferring risk,and avoiding risks are ways of managing risk.

Question 25

Quantitative risk assessment methods include simulation and modeling techniques.

Question 26

Risks that remain after the implementation of new or enhanced controls are called

A)implementation risks.
B)planning risks.
C)residual risks.
D)design risks.

Question 27

Exploiting,sharing,enhancing,and accepting are four ways to deal with positive risks.

Question 28

Project managers or organizations may be viewed as

A)risk-averse decision makers.
B)risk-seeking decision makers.
C)risk-neutral decision makers.
D)all of the above.

Question 29

The risk priority number is computed as Occurrence ∗ Outcome ∗ Detection.

Question 30

Risk mode measures the likelihood that an event described in the risk consequence portion of the risk statement will actually occur.

Question 31

An uncertain event that if it occurs will have a positive or negative effect on the objectives of the project best defines

A)project weakness.
B)project risk.
C)project threat.
D)project opportunity.

Question 32

When preparing an RBS for a construction project,the environment may be attributed to

A)funding factors that may affect the project.
B)budget factors that may affect the project.
C)project team factors that may affect the project.
D)legal factors that may affect the project.

Question 33

A function of the likelihood of a given threat and the resulting impact of that adverse event on the organization best defines

A)risk.
B)problem.
C)occurrence.
D)threat.

Question 34

Categories of risk pertaining to project managers include

A)professional risk.
B)personal risk.
C)environmental risk.
D)cultural risk.

Question 35

Risk milestones are indicators that a risk has occurred or is about to occur.

Question 36

PFMEA is based on computing a risk score based on occurrence of a risk,outcome of a project if the risk event occurs,and the possibility of detection of that risk event.

Question 37

The risk score can be computed as Occurrence ÷ Detection.

Question 38

The process that allows project managers to balance operational and economic costs of protective measures to achieve project success best defines

A)risk identification.
B)risk assessment.
C)risk avoidance.
D)risk management.

Question 39

FMEA is a process in product development and is used in managing operations by analysis of potential failure modes within a system.

Question 40

A risk register is an input to risk monitoring and control.

Question 41

Project risks can be classified as

A)qualitative risks.
B)quantity risks.
C)low-volume risks.
D)internal risks.

Question 42

Defining each risk by a set of standard parameters including likelihood or probability,severity or impact,detection process,and mitigation plans best defines

A)quantitative risk management.
B)qualitative risk management.
C)risk probability.
D)risk regression.

Question 43

The determination of the quantitative or qualitative value of the risks in a project best defines

A)risk assessment.
B)risk probability.
C)risk investigation.
D)risk feasibility.

Question 44

Which of the following helps to identify critical project parameters that affect project schedule the most,determine project success rate,and make decisions about viable project alternatives?

A)document analysis
B)Six Sigma
C)quantitative risk analysis
D)CMMI

Question 45

When using PFMEA,the suggested value for an occurrence of risk without warning is

A)10.
B)9)
C)6)
D)5)

Question 46

Which of the following is an analysis that specifically investigates the potential effects of both the negative and positive risks with regards to project schedule,cost,or performance quality?

A)Six Sigma
B)CMMI
C)DMAIC
D)risk probability assessment

Question 47

Types of Failure Mode and Effects Analysis include

A)Design FMEA.
B)Risk FMEA.
C)Agile FMEA.
D)Object FMEA.

Question 48

When using PFMEA,the suggested value for the temporary shutdown of the project due to scope change negotiations is

A)2)
B)4)
C)6)
D)8)

Question 49

Common tools and techniques used for developing a list of project risks include

A)cause-and-effect diagrams.
B)checklists.
C)mind mapping.
D)all of the above.

Question 50

Which of the following expands the concept of a simple risk score based on occurrence,outcome,and detection of risks by adding the detection attribute to a risk event?

A)SWOT
B)PFMEA
C)JAD
D)RRPD

Question 51

Which of the following is not an internal risk?

A)material shortage
B)technology
C)equipment
D)time

Question 52

When using PFMEA,the suggested value for low possibility of detection is

A)8)
B)6)
C)4)
D)2)

Question 53

Steps involved for the nominal group technique for risk management include each of the following except

A)using JAD sessions to capture user requirements.
B)gathering the core team for a risk workshop.
C)using a flip chart or whiteboard to collect information from the team.
D)begin by asking each person to identify potential areas of risk.

Question 54

Which of the following can be described as a systemized group of activities intended to recognize and evaluate the potential failure of a product or a process and its effects?

A)SWOT
B)FMEA
C)SDLC
D)OOAD

Question 55

When using PFMEA,the suggested value for no significant impact on cost is

A)10.
B)7)
C)1)
D)2)

Question 56

On an RBS for a software development project,development risks are related to

A)corporate and stakeholders.
B)requirements and design.
C)organization and work environment.
D)project team and control.

Question 57

Risk Priority Number is computed as

A)opportunity ∗ risk score ∗ threat.
B)occurrence ∗ outcome.
C)occurrence ∗ outcome ∗ detection.
D)overall cost + (occurrence ∗ threat level score ∗ detection score).

Question 58

The overall risk or exposure of the project at a particular timeframe best defines

A)investment cost.
B)rate of exposure.
C)total cost of ownership.
D)risk landscape.

Question 59

Common tools and techniques used for developing a list of project risks include each of the following except

A)network diagrams.
B)nominal group technique.
C)Delphi technique.
D)brainstorming.

Question 60

A measure of the likelihood that an event described in the risk consequence portion of the risk statement will actually occur best defines

A)risk assessment.
B)risk probability.
C)risk actuality.
D)risk urgency.

Question 61

The likelihood that an event will occur times the impact of that occurrence best defines

A)risk score.
B)risk percentage.
C)threat level.
D)weakness assessment measure.

Question 62

How can qualitative risk assessment be accomplished?

Question 63

The difference between the planned and the actual budget best defines

A)trend.
B)variance.
C)average.
D)mode.

Question 64

Quantitative risk assessment methods include

A)quantitative risk analysis.
B)data gathering and representation techniques.
C)expert judgment.
D)all of the above.

Question 65

A measure used when assessing risk in a project equal to the product of likelihood,impact and detection of risk events best defines

A)risk detection percentage.
B)risk detection score.
C)risk assessment score.
D)risk priority number.

Question 66

A process to manage risks in a project is

A)risk monitoring and control.
B)SWOT analysis.
C)configuration management plan.
D)TMAP.

Question 67

Risks are managed by

A)transferring risk.
B)avoiding risk.
C)accepting risk.
D)all of the above.

Question 68

A log of identified risks along with its owners,risk scores,RPNs,risk responses,triggers,residual and secondary risks,and contingency plans for cost and schedule best defines

A)risk register.
B)risk charter.
C)risk matrix.
D)contingency plan.

Question 69

A systematic approach to identify what can go wrong in a project and be prepared with plans,strategies,and approaches to mitigate and manage risks best defines

A)SWOT analysis.
B)contingency planning.
C)risk assessment.
D)risk avoidance.

Question 70

Identify five ways that risks associated with resources can be reduced.

Question 71

Identify seven common tools and techniques for developing a list of project risks.

Question 72

What is risk? What is risk management? Identify three types of tolerance for project managers or organizations.

Question 73

Options and actions that mitigate risks and reduce project threats best defines

A)risk awareness.
B)risk responses.
C)risk triggers.
D)risk activation.

Question 74

A computerized mathematical technique that furnishes the decision maker with a range of possible outcomes and the probabilities of occurrence for any choice of action best defines

A)Monte Carlo simulation.
B)SWOT analysis.
C)Six Sigma.
D)DMAIC.

Question 75

Risks associated with scope can be reduced by each of the following except

A)setting deadlines and making sure to achieve those deadlines.
B)defining the needs of each task clearly.
C)defining the deliverables clearly.
D)anticipating defects and problems during integration.

Question 76

What are the outputs of risk monitoring and control?

Question 77

A comparison of the contingency reserves of schedule,resources,and budget at a particular time during the progress of a project with the original schedule,resources,and budget to determine if there are enough reserves in schedule,resources,or budget best defines

A)total operating cost.
B)feasibility study.
C)reserve analysis.
D)risk analysis.

Question 78

When using PFMEA,the suggested value for schedule changes not impacting major milestones is

A)5)
B)4)
C)3)
D)10.

Question 79

Indications or warning signs that a risk has occurred or is about to occur best defines

A)risk alerts.
B)monitor alerts.
C)project triggers.
D)risk triggers.

Question 80

Risks associated with costs can be reduced by each of the following except

A)considering many design alternatives before choosing the design.
B)creating a project schedule and striving to adhere to it.
C)identifying and monitoring the key cost drivers.
D)identifying critical tasks and their interdependencies.