Chapter 11: Project Risk Management Part 2

The last step in project risk management is deciding how to address this knowledge area for a particular project by performing risk management planning

False

The lower the earned monetary value calculation for a project, the chances of project success is higher

False

_____ involves prioritizing risks based on their probability and impact of occurrence

Performing qualitative risk analysis

_____ involves numerically estimating the effects of risks on project objectives

Performing quantitative risk analysis

Performing qualitative and quantitative risk analyses are subprocesses of the ______ process of project risk management

Planning

_____ involves deciding how to approach and plan the risk management activities for the project

Planning risk management

A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks

True

Identified risks may not materialize, or their probabilities of occurrence or loss may diminish

True

The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events

True

The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value

True

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place

Workarounds

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk

Risk acceptance

_____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project

Controlling risk

A _____ is a diagramming analysis technique used to help select the best course of action in situations

Decision tree

_____ involves eliminating a specific threat, usually by eliminating its causes

Risk avoidance

_____ involves changing the size of opportunity by identifying and maximizing key drivers of the positive risk

Risk enhancement

_____ involves doing whatever you can to make sure the positive risk happens

Risk exploitation

Risk utility rises at a decreasing rate for a ______ person

Risk-averse

_____ risks refer to those that are direct results of implementing risk responses

Secondary

A _____ is a technique used to show the effects of changing one or more variables on an outcome

Sensitivity analysis