Question 1

A serious risk factor probably has:

Accepted Answer

The answer of A serious risk factor probably has:
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Question 2

A method for conducting risk factor identification that consolidates the judgments of isolated anonymous respondents is:

Accepted Answer

The Delphi method is designed to collect and aggregate the opinions of a group of experts in a systematic way, without the individuals having to meet face-to-face (thus allowing for anonymity). This method is often used for risk factor identification in fields such as healthcare and policy-making.

Question 3

The probability that funds allocated to the project will be insufficient to complete it is:

Accepted Answer

Cost estimate risk refers to the possibility of underestimating or overestimating the necessary project costs. In this case, the risk relates to the possibility of the allocated funds being insufficient, which is directly linked to the accuracy of the cost estimate. Technical risk refers to the likelihood of technical failures or difficulties, financing risk relates to the availability and cost of funding, and operating risk refers to risks arising from the ongoing project operations.

Question 4

A method for conducting risk factor identification that generates ideas but doesn't focus on decision making is:

Accepted Answer

A brainstorming meeting is a method for generating ideas from a group of individuals without the pressure of making a decision. This allows for open sharing of thoughts and ideas without the fear of being judged or overruled. The focus is on generating as many ideas as possible, without evaluating or prioritizing them, which can be useful in identifying potential risk factors.

Question 5

The probability that project revenues will not be sufficient to repay the debts is:

Accepted Answer

This situation pertains to financial risk, which refers to the possibility of financial loss due to a range of factors associated with financial markets, including credit risk, liquidity risk, and market risk. In this context, the risk of not being able to repay debts due to insufficient project revenue is a clear example of financial risk.

Question 6

The construction foreman posted a large sign requiring all work site visitors to don a hard hat and safety glasses.He also purchased copious quantities of both items and made them readily available at the entrance.The foreman is engaged in:

Accepted Answer

The construction foreman is engaging in risk mitigation by taking actions to reduce the likelihood or severity of a potential injury. By requiring visitors to wear hard hats and safety glasses, the foreman is taking proactive measures to prevent accidents or injuries.

Question 7

The probability that investments made to fund the front-end activities will be lost due to project abandonment is:

Accepted Answer

Promotion risk is the risk that investments made to fund the front-end activities will be lost due to project abandonment.

Question 8

The residents of Enumclaw,Washington,live in the shadow of majestic Mount Rainier and its 26 glaciers.The Cascades form a ring of fire around the Pacific Northwest and erupt with surprising regularity,although Mount Rainier hasn't erupted on a major scale since about a thousand years ago.When it does erupt,the pyroclastic flow (a massive cloud of superheated ash and rock up to 1500 degrees Fahrenheit that can travel at speeds up to 300 miles per hour)will make Enumclaw a less pleasant place to live.City leaders have completed the:

Accepted Answer

Based on the information given, city leaders have likely completed the analysis of probability and consequences phase of risk management in order to assess the potential impacts of Mount Rainier's eruption on the town of Enumclaw.

Question 9

One source of information on future risks and the leading indicators that accompany risks is:

Accepted Answer

The answer of One source of information on future risks...

Question 10

The mouse executive board meeting was drawing to a conclusion;the only way they would be able to detect the presence of the cat was to tie a bell around its tail.Under their risk management identification scheme,this would fall under:

Accepted Answer

Technical risk refers to the potential of technology or technical issues to negatively impact a project or company. In this scenario, the technology of tying a bell around a cat's tail to detect its presence could pose a technical risk.

Question 11

While thrilling,there is a chance that you would have an accident if you elected to drive on the Autobahn while blindfolded,an outcome that could be described as:

Accepted Answer

Driving blindfolded on the Autobahn is extremely dangerous, making an accident both highly probable and with severe consequences.

Question 12

The marketing team would develop the advertising campaign to promote the newest product but the engineers wanted to keep all product details a secret during development.The service and operations branches of the company were also in the dark,so product rollout was going to be their initiation also.This project has a very high:

Accepted Answer

Integration risk is high because different departments are not aligned or informed about the product details, which can lead to challenges in coordinating efforts and ensuring a smooth rollout.

Question 13

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

Accepted Answer

The scenario describes input from multiple experts in different fields, which aligns with a multiple assessments approach to risk factor identification.

Question 14

The house had almost been framed when an F-5 tornado ripped across the plains and turned the house back into a lumber pile,not stacked as neatly as it was originally.The homeowner's fears of:

Accepted Answer

An F-5 tornado is considered an act of God or natural disaster, which is beyond human control and a type of insurable risk. Therefore, the homeowner's fear of acts of God had come true. Technical risks refer to risks associated with the equipment, machinery or technology used, operating risks are related to the normal course of business and environmental risks refer to risks arising from the natural environment. None of these risks are relevant to this scenario.

Question 15

Based on the projected selling price of $20 per unit,the manufacturer invested a substantial portion of its available cash in a machine that could produce twenty-thousand gumballs in an hour.If consumers weren't willing to pay this much for gum,then the manufacturer faced significant:

Accepted Answer

Market risk refers to the uncertainty of consumer demand and the potential for changes in market conditions to negatively impact sales and profitability. In this case, the manufacturer invested in a machine that could produce a large quantity of gum, but if consumers were not willing to pay the projected selling price of $20 per unit, the manufacturer would face significant market risk in terms of lower demand and potential financial losses.

Question 16

The probability that a project to establish infrastructure in a third-world country teetering on the brink of civil war is fraught with:

Accepted Answer

Political risk refers to the potential for loss or failure due to political instability or unrest. In a third-world country teetering on the brink of civil war, political risk is likely to be high. Operating risk refers to the potential for loss or failure due to the day-to-day operations of a project, which may be affected by factors such as equipment failure, supply chain disruptions or labor issues. Organizational risk refers to the potential for loss or failure due to internal factors within an organization, such as ineffective management or inadequate resources. Integration risk refers to the potential for loss or failure when trying to integrate different systems or processes. While this may be a concern in a project to establish infrastructure, it is less likely to be the primary risk in a situation involving political instability.

Question 17

There is always a chance that the music loving public cannot be convinced of the need to return to the 8-track format for new releases.The probability that we don't sell one million units before the holiday season is:

Accepted Answer

The probability of not selling one million units before the holiday season is related to market risk as it involves the uncertainty of consumer demand and acceptance of the 8-track format.

Question 18

Risk management is a:

Accepted Answer

The answer of Risk management is a:
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Question 19

The probability that legal and managerial structures put together to develop and operate the project will not perform well is:

Accepted Answer

The probability described is related to the risk associated with the performance of the legal and managerial structures, which is an organizational risk. Operating risk pertains to the risk of loss from a firm's regular business activities, political risk is related to the potential impact of political decisions, and integration risk is related to the risk of merging two different systems or organizations.

Question 20

The probability that a project will overrun its allocated duration is:

Accepted Answer

Schedule risk refers to the potential for a project to exceed its planned timeline or deadline. This can be caused by a variety of factors, such as unexpected setbacks, lack of resources, or poor planning. Therefore, the probability that a project will overrun its allocated duration is considered a schedule risk.

Quiz 7: Risk Management