Question 1

Risk management cannot save part of a failed effort.

Accepted Answer

Risk management can mitigate the impacts of potential issues, potentially saving parts of a project from failure by identifying, assessing, and prioritizing risks and then applying resources to minimize, monitor, and control the probability or impact of unfortunate events.

Question 2

Organizations that are risk neutral grow in utility at a faster pace than risk and the increase in expected outcomes.

Accepted Answer

Organizations that are risk neutral do not take into account the risk when making decisions. Therefore, they do not necessarily grow at a faster pace than organizations that take risks, they just do not factor in the potential negative outcomes of their decisions.

Question 3

The more risks a team identifies and quantifies, the more the team reduces the amount of uncertainty on the project and gives the project manager the information necessary to build in sufficient contingency reserves to help ensure that a product is delivered as defined.

Accepted Answer

By identifying and quantifying risks, the team can better understand potential challenges and build contingency plans to mitigate them. This reduces uncertainty and increases the likelihood of successful project delivery.

Question 4

Monte Carlo simulation is a technique in quantitative risk analysis.

Accepted Answer

Monte Carlo simulation involves using statistical methods to model and analyze the impact of uncertainty and risk in a problem, making it a common technique in quantitative risk analysis.

Question 5

According to the PMBOK, risk response planning is the process of developing options and determining actions to enhance opportunities and reduce threats to a project's objectives.

Accepted Answer

This statement is true according to the PMBOK definition of risk response planning.

Question 6

The acronym EMV stands for expected monetary value.

Accepted Answer

EMV is a financial term that stands for Expected Monetary Value, which is used in decision-making to calculate the average outcome when the future includes scenarios that may or may not happen.

Question 7

After the initial risk identification, the project manager alone should look for new issues that may affect the success of the project.

Accepted Answer

After the initial risk identification, the entire project team should continue to monitor for new issues and risks, not just the project manager alone. It is important to have a collaborative approach to risk management in order to ensure the success of the project.

Question 8

Fallback plans are used if the project cannot be completed as originally planned so an alternate destination needs to be sought.

Accepted Answer

Fallback plans are indeed used if the original plan cannot be completed, and an alternate destination or course of action needs to be found.

Question 9

The success of the interviewing technique for risk identification is heavily dependent on the skills of the interviewee.

Accepted Answer

The success of the interviewing technique for risk identification is heavily dependent on the skills of the interviewer, as they are responsible for effectively eliciting information, guiding the conversation, and identifying potential risks based on the responses given by the interviewee.

Question 10

The key issue with qualitative risk assessment is estimator experience.

Accepted Answer

The answer of The key issue with qualitative risk assessment...

Question 11

Risk identification tools and techniques include broad organizational categories, analogy, brainstorming, interviews, Delphi technique, and SWOT analysis.

Accepted Answer

This is true as these are commonly used tools and techniques for identifying risk in project management.

Question 12

Consequence is an explanation of the event or events that signal to the person monitoring that this risk is about to happen or has happened; it involves looking at the root cause of the risk.

Accepted Answer

Consequence refers to the outcome or impact of an event once it has occurred, rather than the explanation or root cause of the risk itself.

Question 13

Decision tree analysis is a technique in qualitative risk analysis.

Accepted Answer

Decision tree analysis is a quantitative risk analysis technique used to evaluate decisions under uncertainty by analyzing different possible outcomes.

Question 14

A probability and impact matrix aids a project team in prioritizing the risks that need more attention than others, based on either their probability of occurring or the size of the impact to the project or both.

Accepted Answer

This statement accurately describes the purpose and function of a probability and impact matrix in risk management for a project team.

Question 15

Monitor and control is a process of risk management.

Accepted Answer

Monitoring and controlling is a crucial part of risk management. It involves tracking identified risks, evaluating the effectiveness of risk responses, and taking corrective actions when necessary. This helps to ensure that the overall risk profile of a project or organization remains within acceptable levels.

Question 16

Quantitative risk analysis consists of subjective techniques used to determine the probability of occurrence and the project impact of identified risks.

Accepted Answer

Quantitative risk analysis involves using objective methods to assess the likelihood and impact of identified risks, such as statistical modeling or simulation. It is not based on subjective techniques.

Question 17

In analogy approach to risk identification, risks are examined using broad categories such as people, technology changes, quality and performance issues, customers, vendors, management, funding, political issues, legal issues, and market forces.

Accepted Answer

The answer of In analogy approach to risk identification, risks...

Question 18

Every risk should have an associated mitigation strategy.

Accepted Answer

The answer of Every risk should have an associated mitigation...

Question 19

Contingency plans are used if the project cannot be completed as originally planned so an alternate destination needs to be sought.

Accepted Answer

Contingency plans are designed to address specific risks or issues that may arise during a project, allowing the project to continue towards its original objectives, rather than seeking an alternate destination.

Question 20

Risk identification is a one-time process done only at the beginning of a project.

Accepted Answer

Risk identification is an ongoing process throughout the project lifecycle as new risks may emerge or existing risks may change in severity or likelihood.

Quiz 8: Project Risk Management Planning