Section 11, Risk Management

In your project, you are evaluating whether to make insurance or not for your construction project. Probability of an earth quake to happen during your project is 2% and if earth quake happens, it will cost a 1.000.000 USD rework in your project. What is the expected monetary value of this threat? A) 20.000 USD B) 200.000 USD C) 1.000.000 USD D)Information provided is not sufficient

A) 20.000 USD

You are managing a project. A part of your project has a very risky work package. In order to decrease the risk of your project, you removed the regarding work package from your project after negotiating with customer. Which response strategy did you choose for this risk? A) Avoid B) Transfer C) Mitigate D) Accept

A) Avoid

All of the following about Risk Register document is true EXCEPT: A) Created in initiating and finalized in planning process group. B) Includes list of identified risks C) Includes list of potential responses D) Includes root causes of risks

A) Created in initiating and finalized in planning process group.

During risk management activities, options and actions need be planned in order to enhance opportunities and to reduce threats. This is done during: A) Plan Risk Responses B) Identify Risks C) Perform Qualitative Risk Analysis D) Perform Quantitative Risk Analysis

A) Plan Risk Responses

All of the following are outputs of Control Risks process EXCEPT: A) Planning response strategies for risks B) Work Performance Information C) Project Document Updates D) Change Requests

A) Planning response strategies for risks

Risk Management Plan is major output of Plan Risk Management Process. All of the following are included in Risk Management Plan EXCEPT: A) Project Organization Chart B) Risk Categories C) Budgeting D) Roles and Responsibilities

A) Project Organization Chart

During your project planning, it has been decided that maximum budget exceeding can be 100.000 USD. This is an example of: A) Risk Threshold B) Risk Averse C) Risk Tolerance D) Risk Reserve

A) Risk Threshold

Your project is behind schedule. In order to get back on track, you added extra resources to delaying activities in your project. However, this response plan can cause you to exceed your project budget. This is an example of: A) Secondary Risk B) Contingency Reserve C) Management Reserve D) Inevitable Risk

A) Secondary Risk

During risk management activities, 236 risks have been identified which are caused by 13 root causes. You could eliminate the 234 risks by your risk management activities. For remaining 2 risks, you, together with your team, could not find a way to mitigate or insure the risks. Also these 2 risks cannot be outsourced or removed from project scope. What is the best solution? A-) Accept the risk B-) Mitigate the risk C-) Avoid the risk D-) Transfer the risk

A-) Accept the risk

Which of the following risk events is MOST likely to interfere with attaining a project's schedule objective? A-) Delays in obtaining required approvals B-) Substantial increases in the cost of purchased materials C-) Contract disputes that generate claims for increased payments D-) Slippage of the planned post-implementation review meeting

A-) Delays in obtaining required approvals

Which of the following MUST be an agenda at all team meetings? A-) Discussion of project risks B-) Status of current tasks C-) Identification of new tasks D-) Review of the project scope

A-) Discussion of project risks

Outputs of the Plan Risk Responses process include: A-) Residual risks, fallback plans and contingency reserves B-) Risk triggers, contracts and a risk list. C-) Secondary risks, process updates and risk owners D-) Contingency plans, project management plan updates, and change requests.

A-) Residual risks, fallback plans and contingency reserves

The CPI of a project is 0.55 and SPI is 0.65. Project has been estimated to be completed in 2 years and including 315 work packages and 1 year passed after start. Project has very junior team members and did not have required support during planning. Which one is the BEST action in this case? A-) Update risk identification and analysis B-) Spend more time improving the time estimates C-) Remove unnecessary work packages from the project. D-) Reorganize the RACI matrix

A-) Update risk identification and analysis

All of the following are benefits of using Probability and Impact Matrix EXCEPT: A) Sorts risks based on their importance B) Eliminates several risks C) Can be used as a standard in entire company D) Enables the prioritization process repeatable in other projects

B) Eliminates several risks

You will be starting to a new hospital construction project. Your company completed a similar project in past and you scheduled a meeting with a team member of previous project in order to ask risks of previous project. You used which of the following techniques of Identify Risks process? A) Documentation review B) Interviewing C) Root Cause analysis D) Brainstorming

B) Interviewing

All of the Risk Management processes belong to planning process group EXCEPT: A) Identify Risks B) Monitor Risks C) Perform Quantitative Risk Analysis D) Perform Qualitative Risk Analysis

B) Monitor Risks

All of the following about Risk Management is true EXCEPT: A) Non-critical risks are monitored in watchlist document B) Only one best response for a risk can be chosen C) Contingency reserves are put for "known" risks D) Management reserves are put for "unknown" risks

B) Only one best response for a risk can be chosen

During your risk management activities, you have avoided, transferred or mitigated several risks. There are still 4 risks remaining. Which of the following is the BEST action? A) Removing regarding work package from scope B) Planning contingency reserves for remaining risks C) Shifting the risks to another party D) Reducing probability of occurrence of risks

B) Planning contingency reserves for remaining risks

Some risks that might occur in near-term need to be addressed first. In order to do determine near-term risks, which of the following should be done? A) Risk Data Quality Assessment B) Risk Urgency Assessment C) Risk Categorization D) Risk Response Planning

B) Risk Urgency Assessment

Which one of the following is the most important item to address in project status meetings? A) Upcoming milestones B) Risks C) Current progress D) Accomplished tasks

B) Risks

You are executing a project which has 70% chance of a $100.000 profit, and a 30% of a $100.000 loss to your company. What is the expected monetary value for this project? A-) $100.000 profit B-) $40.000 profit C-) $40.000 loss D-) $100.000 loss

B-) $40.000 profit

Agreed-upon risk response strategies are executed in which of the following risk management processes? A) Perform Quantitative Risk Analysis B) Identify Risks C) Implement Risk Responses D) Monitor Risks

C) Implement Risk Responses

Risks have several factors. All of the following are risk factors EXCEPT: A) Probability of its occurrence B) Expected Timing C) Management Reserves D) Range of possible outcomes

C) Management Reserves

All of the following about Perform Qualitative Risks Analysis process is true EXCEPT: A) Risks are prioritized B) Reduces the level of uncertainty C) Objective analysis of risks is done D) Enables to focus on high-priority risks

C) Objective analysis of risks is done

All of the following about Identify Risks process are true EXCEPT: A) Project risks are identified B) Characteristics of risks are identified C) Project risks are identified only by project management team and sponsor D) Existing risks are documented

C) Project risks are identified only by project management team and sponsor

You planned a contingency reserve for a residual risk in your project during planning process group. Later in execution process group, you discovered that risk that you planned a contingency reserve will not happen. What would you do the contingency reserve allocated for that risk? A) Add extra resources to finish project earlier B) Allocate for other risks C) Return to company D) Wait for end of the project

C) Return to company

During risk management activities of your project, you determined that if project's schedule performance index (SPI) falls below 0.9, you will put extra resources to your project. Fall of SPI below 0.9 is an example of: A) Risk Starter B) Risk Action C) Risk Trigger D) Risk Register

C) Risk Trigger

A customer has requested a device which can locate their vehicles via GPS technology and an application for tracking the vehicles. Your company has an experience on hardware design and decided to get the software application from another company which is expert on software development. This is an example of which risk response strategy? A) Exploit B) Enhance C) Share D) Accept

C) Share

All of the following about Perform Quantitative Risk Analysis Process is true EXCEPT: A) Numerically analyzes the effect of identified risks B) Determines which risks warrant a response C) Subjective analysis and cannot be skipped in a project D) Determines cost and schedule reserves

C) Subjective analysis and cannot be skipped in a project

A project manager asked various stakeholders to determine the probability and impact of a number of risks. Then, he analyzed assumptions. He is about proceed to next processes of Risk Management. Which step did he forget to do? A-) Trend analysis of risks B-) Identify risk triggers C-) Provide a standardized risk rating matrix D-) Create a contingency plan

C-) Provide a standardized risk rating matrix

Which of the following is an output of Plan Risk Responses process? A) Scope Baseline B) Schedule Baseline C) Cost Baseline D) All of the above

D) All of the above

All of the following are purposes of Risk Management activities EXCEPT: A) Conducting risk management planning B) Increasing likelihood and impact of positive events C) Decreasing likelihood and impact of negative events D) Allocating reserves for risks

D) Allocating reserves for risks

Which of the following risk response strategies can be applied both for opportunities and threats? A) Avoid B) Exploit C) Mitigate D) Escalate

D) Escalate

There are several techniques that can be used in Perform Quantitative Risk Analysis process. In your project, you want to see most probable and impact point for a risk. Which technique is BEST for this purpose? A) Interviewing B) Sensitivity Analysis C) Expected Monetary Value Analysis D) Probability Distribution

D) Probability Distribution

During your risk management activities, you can eliminate several risks. After risk management activities, remaining risks are called as: A) Reserve B) Risk Response C) Risk Register D) Residual Risks

D) Residual Risks

Which of the following documents include information about risks? A) Schedule Baseline B) Scope Baseline C) Risk List D) Risk Register

D) Risk Register

SWOT analysis isa technique used in Identify Risks process. SWOT stands for: A) Strict, Weighting, Opportunities and Threats B) Straight, Weaknesses, Opportunities, Tight C) Strengths, Weaknesses, Opportunities and Trust D) Strengths, Weaknesses, Opportunities and Threats

D) Strengths, Weaknesses, Opportunities and Threats

In your project, you want to compare the planned results with the actual results regarding risks. Which of the following technique would you use? A) Risk Audits B) Meetings C) Reserve Analysis D) Variance and Trend Analysis

D) Variance and Trend Analysis

During project execution, a team member mentioned a new risk in team meeting that is not in risk register. What should you do FIRST? A-) Transfer the risk B-) Ignore the risk, because all risks were identified during planning processes C-) Tell the customer about the new risk D-) Analyze the risk.

D-) Analyze the risk.

A project manager is quantifying risk for her project. She needs expert opinion in this process and related experts are spread over to different geographical locations. How can she continue? A-) Using Monte Carlo analysis online B-) Applying the critical path method C-) Determine options for recommended corrective action D-) Applying the Delphi Technique

D-) Applying the Delphi Technique

Risks are identified during _________ risk management process(es). A-) Identify Risks B-) Perform Qualitative Risks and Monitor Risks C-) Identify Risks and Perform Quantitative Risks D-) Identify Risks and Monitor Risks

D-) Identify Risks and Monitor Risks