CH 11
___ 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.
Monitoring and controlling risk
"Will the project meet NPV, ROI, and payback estimates?" Which risk category does this question apply to?
financial risk
Will the project meet NPV, ROI, and payback estimates?" applies to which risk category? ___
financial risk
____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.
monte carlo
___ involves deciding how to approach and plan the risk management activities for the project.
planning risk management
___ risks are a direct result of implementing a risk response.
secondary
There are ____ major processes involved in risk management
six
Risk management is a frequently overlooked aspect of project management
t
Unenforceable conditions, unenforceable contract clauses, and adversarial relations are risk conditions associated with which project management knowledge area?
procurement
___ involves changing the size of the 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
____ involves reducing the impact of a risk event by reducing the probability of its occurrence.
risk mitigation
____ 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
risk monitoring and control
It is uncommon for people to identify problems or opportunities without really understandingthem
F
Poor conflict management, poor project organization and definition of responsibilities, and absence of leadership are risk conditions associated with the ____ project management knowledge area
human resources
A(n) ____ represents decision problems by displaying essential elements, including decisions,uncertainties, causality, and objectives, and how they influence each other
influence diagram
William Ibbs and Young H. Kwak's study revealed that the ____ industry had the lowest level of project management maturity in the area of risk management
information systems
____ is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions
interviewing
KLCI Research Group's 2001 survey revealed that ____ percent of the organizations surveyed had a Project Management Office
64
KLCI Research Group's 2001 survey revealed that ____ percent identified anticipating and avoiding problems as the primary benefit of risk management
80
KLCI Research Group's 2001 survey revealed that ____ percent of the participants said they had procedures in place to identify and assess risk.
97
__ are predefined actions that the project team will take if an identified risk event occurs
Contingency plans
A risk management review accomplishes one objective: it keeps management and thecustomer aware of the major influences that could prevent or enhance the project's success
F
A simple approach to using probability/impact information is to calculate risk factors.
F
Few organizations develop their own risk questionnaires
F
Good project risk management never goes unnoticed
F
A potential response to the risk event of a defective server might be the inclusion of a clausein a contract with the supplier to replace a defective server within a certain time period at anegotiated cost
T
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
T
The cost for risk management should not exceed the potential benefits
T
____ are predefined actions that the project team will take if an identified risk event occurs
contingency plans
"Is there a project champion?" applies to which risk category? __
people risk
___ 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
According to the Standish Group' s success potential scoring sheet, ____ has the highest relativeimportance
user involvement
Negative and positive risks should always be included in the same probability/impact matrixor chart.
F
Negative risk management is like investing in opportunities
F
Potential risks can only be identified early in a project
F
Quantitative risk analysis and qualitative risk analysis must be done together
F
Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project.
F
The lower the EMV, the better.
F
A probability/impact matrix or chart lists the relative probability of a risk occurring on oneside of a matrix or axis on a chart and the relative impact of the risk occurring on the other.
T
Project risk management does not stop with the initial risk analysis
T
You can break down the technology risk category into hardware, software, and network technology
T
___ are/is a qualitative risk analysis tool, and in addition to identifying risks, it maintains an awarenessof risks throughout the life of a project.
Top Ten Risk Item Tracking
KLCI Research Group' s 2001 survey revealed that the most frequently cited benefit from software risk management practices is to ___
anticipate/avoid problems
What is the first step in a Monte Carlo analysis?
assess the range for the variables being considered
In a risk breakdown structure, competitors, suppliers, and cash flow are categories that fall under ____ risk
business
In a risk breakdown structure, competitors, suppliers, and cash flow fall under the ____ risk category
business
A(n) ____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain
decision tree
____ are developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective
fallback plans
A simple approach to using probability/impact information is to calculate risk factors
false
___ involves determining which risks are likely to affect a project and documenting the characteristics of each.
identifying risks
"I f the information technology project is to produce a new product or service, will it be useful to the organization or marketable to others?" applies to which risk category? ___
market risk
___ involves taking steps to enhance opportunities and reduce threats to meeting project objectives
planning risk responses
A project manager can chart the probability and impact of risks on a __
probability/impact matrix
Unenforceable conditions or contract clauses, and adversarial relations are risk conditions associated withthe ____ project management knowledge area
procurement
A ____ person achieves a balance between risk and payoff
risk - neutral
___ applies to positive risks when the project team cannot or chooses not to take any actions toward arisk.
risk acceptance
Utility rises at a decreasing rate for a(n) ____ person.
risk averse
___ involves eliminating a specific threat, usually by eliminating its causes
risk avoidance
____ involves eliminating a specific threat, usually by eliminating its causes
risk avoidance
Those who are ____ have a higher tolerance for risk, and their satisfaction increases when more payoff isat stake
risk seeking
___ involves allocating ownership of the risk to another party
risk sharing
___ involves shifting the consequence of a risk and responsibility for its management to a third party
risk transference
Utility rises at a decreasing rate for a ____ person.
risk-averse
By reviewing the project scope statement, project management plan, enterprise environmental factors, and organizational process assets, project teams can discuss and analyze risk management activities for their particular projects.
true
Increasing the project manager's authority is a strategy for mitigating technical and cost risks
true
Risk management is a frequently overlooked aspect of project management.
true
___ is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions
interviewing
The last step in project risk management is deciding how to address this knowledge area for a particular project by performing risk management planning
F
The level of detail included in the risk management plan rarely varies across projects
F
The main output of qualitative risk analysis is a decision tree.
F
The psychology literature shows that individuals, working alone, produce fewer ideas than thesame individuals produce through brainstorming in small, face-to-face groups
F
Before you can improve project risk management, you must understand what risk is.
T
By reviewing the project scope statement, cost, schedule, and communications management plans, enterprise environmental factors, and organizational process assets, project teams candiscuss and analyze risk management activities for their particular projects
T
Increasing the project manager's authority is a strategy for mitigating technical and cost risks
T
SWOT analysis can be used during risk identification by having project teams focus on th
T
Selecting the most experienced project manager is recommended for reducing schedule risks.
T
Several PC-based software packages are available that perform Monte Carlo simulations
T
The Delphi technique is a systematic, interactive forecasting procedure based on independentand anonymous input regarding future events.
T
The Microsoft Solution Framework (MSF) includes a risk management model that includesdeveloping and monitoring a top-ten master list of risks
T
A(n) ____ is a diagramming analysis technique used to help select the best course of action in situationsin which future outcomes are uncertain
decision tree
___ are developed for risks that have a high impact on meeting project objectives, and are put into effectif attempts to reduce the risk are not effective
fallback plans
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
William Ibbs and Young H. Kwak's study revealed that the ____ industry had the lowest level of project management maturity in the area of quality management
information systems
William Ibbs and Young H. Kwak's study revealed that the ____ industry had the lowest level of project management maturity in the area of risk management
information systems
