Question 1

The risk is highest in the earliest phase of the project life cycle.

Accepted Answer

The risk is highest in the earliest phase of the project life cycle because this is when the project objectives, scope, and requirements are defined and initial planning and scheduling occurs. The earlier risks are identified, the more opportunity there is to implement risk management strategies to minimize or prevent them. As the project progresses, risks may still arise but with less frequency and impact on the schedule and budget.

Question 2

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

City leaders have analyzed the probability and consequences of the risk posed by Mount Rainier erupting. They are aware of the potential danger and have likely developed evacuation plans and other emergency measures in case an eruption occurs. This indicates they have completed the analysis phase of risk management.

Question 3

Jim knew instinctively that his professor wouldn't appreciate it if he brought his single scoop of vanilla ice cream into the lecture hall with him.He could almost hear the inevitable question,"Did you bring enough for everyone?" To avert such an embarrassment,he practically inhaled his frozen confection as he raced down the hall.He had eaten ice cream in this fashion before and knew he would soon have an ice cream headache,which could be described as:

Accepted Answer

The ice cream headache Jim anticipates is highly likely to occur given his rapid consumption of the ice cream, but the consequence (a temporary headache) is relatively minor and not severe or long-lasting.

Question 4

The greatest project opportunity occurs when:

Accepted Answer

The greatest project opportunity occurs during the conceive phase because this is when ideas are generated, evaluated, and selected. It is during this phase that the project team has the most flexibility to consider alternative approaches and make strategic decisions that can have a significant impact on the project's ultimate success. Once the project moves into the develop, execute, and finish phases, it becomes increasingly difficult and costly to make significant changes to the project's scope, objectives, or design. Therefore, it is essential to seize the opportunity to create the best possible project plan during the conceive phase.

Question 5

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 engaged in risk mitigation by taking steps to reduce the risk of head and eye injuries on the work site. By requiring visitors to wear hard hats and safety glasses and making them readily available, he is reducing the likelihood of accidents occurring and mitigating the potential consequences of such accidents.

Question 6

Sketch the risk level and opportunity curves as a function of the project life cycle stage.Provide an example of a project from the recent business literature or your personal experience that exhibits these characteristics.Cite specific instances where the levels of opportunity,risk,and stake fluctuated.

Accepted Answer

The answer of Sketch the risk level and opportunity curves...

Question 7

While thrilling,there is a chance that you would have an accident if you elected to drive on the wrong side of a divided highway in Woodward,an outcome that could be described as:

Accepted Answer

Driving on the wrong side of a divided highway significantly increases the likelihood of a collision, which can result in severe consequences, including fatal injuries. Therefore, the action is both high in probability of occurring and high in consequence.

Question 8

The difference between projects that fail and those that are ultimately successful has to do with:

Accepted Answer

The most successful projects are often those that have contingency plans in place and strategies for dealing with problems as they arise. It is rare for a project to run without encountering some type of challenge or obstacle, so having a plan to manage those issues is essential to achieving success. Choices B, C, and D are not accurate differentiators between successful and failed projects.

Question 9

As risk decreases in the project life cycle,opportunity increases.

Accepted Answer

In the project life cycle, as risk decreases, opportunities typically decrease as well because the early stages of a project, which are riskier, also present the most opportunities for innovation and change.

Question 10

Project risk is highest during the:

Accepted Answer

Project risk is highest during the Conceive phase of the project life cycle. This is because in this phase, the project is still being conceptualized and planned, and many assumptions and unknown variables have not yet been identified or addressed. As a result, there is a higher potential for risks to emerge and impact the project. As the project progresses through the other phases, risks are identified and mitigated, and the overall risk exposure decreases.

Question 11

Risk and opportunity:

Accepted Answer

The answer of Risk and opportunity:
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Question 12

Risks can be quantified by multiplying the likelihood a failure will occur by the severity of the failure.

Accepted Answer

This statement is true. The combined product of the likelihood of failure with the potential impact of the failure gives the quantifiable risk of the situation. This method is often used in risk assessment and management to prioritize and mitigate potential risks.

Question 13

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Accepted Answer

This statement is true as opportunity arises from favorable conditions such as favorable market conditions, available resources, and skilled workforce, while risk develops from unfavorable circumstances, such as natural disasters, economic downturns, and regulatory changes.

Question 14

Project risk is lowest during the:

Accepted Answer

The Finish phase of the project life cycle is when the project is complete and all deliverables have been produced, meaning that the majority of the risks have been mitigated and the project is closer to being a success than during any other phase. This is when risks related to project execution, scope creep, and stakeholder satisfaction have been addressed and resolved, leading to a lower risk overall.

Question 15

To protect his poultry from meteorites,the gentleman farmer made hard hats for each bird and installed a meteor detection system that opened umbrellas throughout the yard if a meteor were detected.The safety of his flock thus assured,the farmer was surprised when he read his latest issue of Risk Management Magazine and discovered that this event was:

Accepted Answer

The probability of meteorites falling and damaging the poultry is considered low, as it is a rare event. However, the consequences of such an event would be high, as it could potentially harm the farmer's entire flock. This aligns with option C, which states that it is a low probability but high consequence event.

Question 16

Risk management is a:

Accepted Answer

The answer of Risk management is a:
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Question 17

The greatest project risk occurs when:

Accepted Answer

The greatest project risk is characterized by both a high probability of occurrence and high consequences if the event happens, making option A correct.

Question 18

How does risk level vary with project life cycle stages? Where is the period of highest risk impact? Why?

Accepted Answer

The answer of How does risk level vary with project...

Question 19

The amount a company has at stake in a project rises above the dollar value of opportunity in the:

Accepted Answer

The answer of The amount a company has at stake...

Question 20

The period of highest risk impact for a project risk exists primarily in the:

Accepted Answer

The answer of The period of highest risk impact for...

Quiz 7: Risk Management