Deck 10: Project Risk Planning

Question 1

Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of identified risks on overall project objectives.

Answer 1

True

Question 2

It is impossible to remove all sources of risk on a project.

Answer 2

True

Question 3

In some cases,project teams will elect to reduce a threat to a level that a sponsor and other stakeholders deem acceptable,rather than eliminate it completely.

Answer 3

True

Question 4

The process of deciding how to approach,plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM).

Question 5

When the impact of an event is negative,it is considered a risk; when the impact is positive,the event is considered an opportunity.

Question 6

Risk response strategies such as acceptance and conducting further research apply to both threats and opportunities.

Question 7

In agile projects,early risk planning is done at a detail level.

Question 8

A risk management plan should define who has responsibility for causing each risk and hold the responsible party directly accountable for developing an appropriate solution.

Question 9

Sometimes the risks posed by a project are so great that an appropriate risk response is to not perform the project at all.

Question 10

Once risks have been identified and analyzed,the project team decides how they will handle each risk.

Question 11

Risk response strategy decisions should reflect a thorough understanding of the priorities that key stakeholders have for cost,schedule,scope,and quality.

Question 12

The primary questions project teams use in qualitative risk analysis are "how likely is this risk to happen?",and "if it does happen,how big will the impact be?"

Question 13

The risk management plan is a component of the project management plan that describes how risk management activities will be structured and performed on a project.

Question 14

Perform Quantitative Risk Analysis is the process of prioritizing risks for subsequent further analysis or action by assessing and combining their probability and impact.

Question 15

The primary output of risk identification is the Risk Identification Matrix (RIM).

Question 16

A risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholder priorities.

Question 17

When complete,the risk register presents the results of both qualitative and quantitative risk analysis as well as risk response planning.

Question 18

The risk register is a living document and new risks can be added as they are discovered.

Question 19

The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project.

Question 20

Plan Risk Responses is the process of developing options to enhance opportunities and reduce threats for every risk that has been identified.

Question 21

All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT:

A) reviewing project documents
B) documenting lessons learned
C) interviewing stakeholders
D) brainstorming among team members and subject matter experts

Question 22

All of these describe contemporary methods of risk prioritization in project management EXCEPT:

A) Risk prioritization is generally based on the probability of occurrence and severity of impact of each identified risk.
B) Some organizations place a higher priority on risks that are likely to happen soon.
C) Some organizations call attention to the risks that are difficult to detect.
D) Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register.

Question 23

Which of the following activities illustrates a risk response strategy designed to mitigate a threat?

A) adopt a fixed price type contract
B) train a team member to cover for a potentially unavailable key resource
C) change the project plan or scope
D) develop change control procedures

Question 24

Which of the following describes the appropriate use of a cause-and-effect diagram to support project risk analysis?

A) The project team begins by identifying strengths,weaknesses,opportunities and threats.
B) Assumptions and constraints are organized in a fishbone pattern.
C) Although effects are more visible,it is often easier to alter the effect by changing the underlying cause.
D) Team members are encouraged to keep asking "when?" to break down risks into more detailed causes.

Question 25

On agile projects,detailed risk management activities may occur during all of the following times EXCEPT:

A) While planning each subsequent iteration.
B) During early risk planning at the start of the project.
C) In daily stand-up meetings.
D) During retrospectives at the end of each iteration.

Question 26

All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT:

A) Large,complex and expensive projects stand to benefit from the additional rigor of quantitative risk analysis techniques.
B) Quantitative techniques are used when it is critical to predict the probability of completing a project on time or within budget with confidence.
C) Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible.
D) Decision Tree Analysis and Simulation techniques such as Monte Carlo Analysis are examples of useful quantitative risk analysis techniques.

Question 27

Risk response strategies such as mitigation and exploitation apply to both threats and opportunities.

Question 28

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events.All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:

A) develop a flow chart that shows how people,materials or data flow from one person or location to another
B) conduct a root cause analysis
C) understand trigger conditions that indicate a risk is about to occur
D) list all risks in a risk register

Question 29

Risk is often considered in terms of impact to project success.Which of the following is NOT a valid measure of project success?

A) meeting specifications
B) customer related measures such as customer satisfaction
C) achieving efficiencies in ongoing operations
D) measures related to the firm's objectives including market share or new products

Question 30

Which of the following activities illustrates a risk response strategy designed to research a threat or an opportunity?

A) establish triggers and update them frequently
B) establish time or cost contingencies
C) construct a prototype to learn more about a candidate solution
D) identify a risk owner to each high priority risk

Question 31

All of the following criteria can be used to categorize project risks EXCEPT:

A) whether the risk is a known known
B) the project objective that may be impacted by the risk
C) whether the risk is internal or external to the performing organization
D) the project life cycle phase

Question 32

All of the following are among the classic risk response strategies EXCEPT:

A) share a threat
B) transfer a threat
C) enhance an opportunity
D) avoid a threat

Question 33

All of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT:

A) It enables project managers to eliminate or reduce the impact of some threats.
B) It enables the project manager to identify and eliminate all risks
C) It facilitates communication with various project stakeholders.
D) It enables project managers to capitalize on some opportunities.

Question 34

When a project team elects to purchase insurance,or adopts a fixed price contract with a vendor,or hires an expert,it is demonstrating which of the following risk response strategies?

A) avoid a threat
B) transfer a threat
C) mitigate a threat
D) assume a threat

Question 35

Figure 10-1 Excerpt from Internet Project Risk Register
Consider the excerpt of the Internet Project risk register presented in Figure 10-1.Which of the following risk events should receive the highest priority for the development of risk responses?

A) A - project requires new technology and support structure
B) B - web infrastructure lacks sufficient transaction capacity
C) C - IS resources are spread too thin
D) D - The intranet site suffers a security breach

Question 36

All of the following describe an appropriate application of Plan Risk Responses in project management EXCEPT:

A) Risk response planning should address both opportunities and threats.
B) Responses should be created for every identified project risk.
C) The expectations of the sponsor and key stakeholders should influence the risk responses that are developed.
D) Often multiple strategies are identified for a single risk.

Question 37

Which of the following quantitative risk analysis techniques is used to determine which risks have the most powerful impact on the project,with results displayed in the form of a tornado diagram?

A) Failure Mode and Effects Analysis (FMEA)
B) Expected Monetary Value
C) Sensitivity Analysis
D) Simulation Techniques such as Monte Carlo Analysis

Question 38

Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis?

A) Team members assess the probability of occurrence and severity of impact for identified risks.
B) Team members develop contingency plans for all risks to avoid adverse impacts to project objectives.
C) Team members identify potential risk events.
D) Team members define how to conduct risk management activities for the project.

Question 39

Which of the following accurately describes risk in project management?

A) A risk may impact the project in a positive or negative way.
B) Some projects have no risks.
C) Risk assessment should remain objective and uninfluenced by stakeholder priorities.
D) Project managers should always be risk averse

Question 40

Project teams can often identify risks by conducting any of several types of reviews.Which of the following illustrates a valuable type of risk review?

A) review the project schedule to determine if certain people are overloaded
B) review previous projects to verify that each current assumption is correct
C) review the communication plan to determine where poor communications could cause a problem
D) review sunk costs to determine project continuance

Question 41

Identify five common project risk strategies employed to address threats that your project may face.Give an example of each.

Question 42

How might you approach the prioritization of the risk events identified by your project team and subject matter experts? How would you use the results of this prioritization effort to guide the development of risk responses?

Question 43

Identify and describe three risk identification techniques.What are some of the benefits of each technique?

Question 44

All of the following activities are appropriate upon completion of risk response planning EXCEPT:

A) The risk register should be updated to reflect the risk response strategies.
B) The risk register should be baselined after planning is completed,and should not be updated once the project is in flight.
C) The project plan should be updated to reflect any changes to the project schedule,budget or resource assignments.
D) A single person should be assigned as the owner of each risk.

Question 45

All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT:

A) identify trigger condition
B) assign more or better resources
C) purchase insurance
D) give the project more visibility