Ch. 7 Quiz Bank

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves. A.contingency B.management C.unidentified risk D.just in case E.padded

A.contingency

Which of the following is NOT included in a Failure Mode and Effects Analysis? A.Impact B.All of these are included C.Risk value D.Detection E.Probability

B.All of these are included

Choosing to move a concert indoors to eliminate the threat of bad weather is an example of a risk. A.Mitigating B.Avoiding C.Escalating D.Retaining E.Transferring

B.Avoiding

One of the choices below refers to major unforeseen risks and endeavors to supply funds for the same. Which choice is it? A.Contingency reserves B.Management reserves C.Activity reserves D.Project reserves E.Time buffers

B.Management reserves

Risks that can result in a system or process that will not work are known as A.Schedule Risks B.Technical Risks C.Cost Risks D.Funding Risks E.Unnecessary Risk

B.Technical Risks

The ________ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks. A.mitigation B.risk severity C.risk assessment D.detection difficulty E.risk measurement

B.risk severity

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as A.Scenario analysis B.Contingency planning C.Risk management D.Disaster protection E. Risk forecasting

C.Risk management

The event or point in time when a contingency plan will be implemented is called a(n) _________. A.threshold B.execute event C.contingency event D. Trigger E.milestone

D. Trigger

Change management systems are designed to accomplish all of the following EXCEPT A.identify expected effects of proposed changes on schedule and budget B. reflect scope changes in baseline and performance measures C.track all changes that are to be implemented D.All of these are examples of what change management systems are designed to accomplish E.review, evaluate, and approve/disapprove proposed changes formally

D.All of these are examples of what change management systems are designed to accomplish

The table that shows each risk event as rows while columns will identify the name of the risk, the response to the risk, the contingency plan and the trigger is called what? A.Risk identification table B.Risk characterization table C.Responsibility assignment matrix D.Risk response matrix E.Risk assessment matrix

D.Risk response matrix

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. A.scenario analysis B.contingency breakdown structures C.organizational breakdown structure D.risk breakdown structures E.risk assessment

D.risk breakdown structures

Which of the following is NOT one of the steps in the risk management process? A.Risk assessment B.Risk identification C.Risk response control D.Risk response development E.Risk tracking

E.Risk tracking

This response allocates some or all of the responsibility of realizing the identified opportunity for the project. A.Multiple Choice B.Enhance C.Accept D.Escalate E.Share F. Exploit

E.Share

What kind of plan goes into place should a risk event actually occur? A.a contingency plan B.a risk response C.a project plan D.an escalating and enhancement plan E.a mitigation plan

A.a contingency plan

One common mistake made early in the risk identification process is to A.focus on consequences and not on the events that could produce consequences. B.encourage participants be over optimistic. C.give too much attention to past events. D.support participants being over pessimistic. E.not consider all possibilities.

A.focus on consequences and not on the events that could produce consequences.

What is the risk value of a risk whose impact score is 5, whose probability score is 5 and whose detection score is 1? A.125 B.11 C.10 D.25 E.5

D.25

What kind of plan goes into place should a risk event actually occur? A.A risk response B.An escalation and enhancement plan C.A project plan D.A contingency plan E.A mitigation plan

D.A contingency plan

The likelihood of a risk occurring _____ as a project goes through its life cycle. A.becomes more probable B.increases C.amplifies D.decreases E.moderates

D.decreases

When considering risk response development, assuming the risk because the chance of such an event is slim is known as _________ the risk. A.Mitigation B.Transfering C.Escating D.Avoiding E.Retaining

E.Retaining

Just as contingency funds are established to absorb unplanned costs, managers use ______to cushion against potential delays.? A.time buffers B.project reserves C.budget reserves C.project buffers E.management reserves

A.time buffers

The risk assessment form contains all of the following EXCEPT A.who will detect the occurrence of the risk event. B.difficulty of detecting the occurrence of the risk event. C.when the risk event may occur. D.likelihood of the risk event occurring. E.potential impact of the risk event.

A.who will detect the occurrence of the risk event.

The lowest risk value that an identified risk can take is ________, while the highest risk value that an identified risk can take is ______. A.1, 25 B.1,5 C.1,125 D.0,5 E.0, 1 × 10 to the 300 power

C.1,125

Most changes on a project are related to A.improvement changes. B.customer-driven changes to requirements. C.implementing contingency plans. D.scope changes. E.All of these alternatives are correct.

E.All of these alternatives are correct.

A fixed price contract is an example of A.mitigation risk B.transferring risk C.avoiding risk D.escalating risk E.accepting risk

B.transferring risk

An unanticipated event that occurs which is beneficial to a project is known as a(n) A.Success factor B.Risk C.Desirable event D.Opportunity E.Management reserve

D.Opportunity

When considering risk response development, changing the plan to eliminate the risk or condition is known as ____________ the risk. diminishing avoiding escalating retaining transferring

avoiding

A list of questions that address traditional areas of uncertainty on a project is known as a A.risk profile B.risk template C.risk assessment D.risk questionnaire E.risk appraisal

A.risk profile

Performance bonds, warranties, and insurance are examples of a risk. A.Retaining B.Mitigating C.Escalating D.Transferring E.Avoiding

D.Transferring

Tools such as a risk assessment form and a risk severity matrix are used to A.respond to risks. B.identify risks. C.regulate risks. D.assess risks. E.control risks.

D.assess risks.

The table that shows each risk event as rows while columns will identify the name of the risk, the response to the risk, the contingency plan and the trigger is called what? A.Risk identification table B.Risk assessment matrix C.Risk response matrix D.Risk characterization table E.Responsibility assignment matri

C.Risk response matrix

Which of the following is NOT one of the steps in the risk management process? A.Risk identification B.Risk assessment C.Risk tracking D.Risk response control E.Risk response development

C.Risk tracking

_____________ systems involve reporting, controlling, and recording changes to the project baseline. A.Change management B.Production management C.Proactive management D.Productive management E.Total management

A.Change management

Which of the following risks are likely to be retained? A.Risks of low likelihood B.Risks that are transferred C.Risks of high likelihood D.Risks of high consequence E.Risks that are escalated

A.Risks of low likelihood

The chances of a risk event occurring as a project proceeds through its life cycle tend to A.Slowly Drop B.slowly rise. C.rise sharply and then level out. D.drop sharply and then level out. E.remain about the same.

A.Slowly Drop

This response is used when an identified opportunity is not actively pursued. A.Exploit B.Accept C.Enhance D.Share E.Escalate

B.Accept

Which of the following groups should NOT be a part of the risk identification process? A.Customers B.All of these groups can be included in the risk identification process C.Project team D.Vendors E.Subcontractors

B.All of these groups can be included in the risk identification process

After your team has successfully identified potential risks that could affect the project, what is the next step? A.Create a risk breakdown structure B.Assess identified risks C.Decide how to respond to all risks D.Create contingency plans E.Mitigate risks

B.Assess identified risks

Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? A.Retaining B.Avoiding C.Mitigating D.Transferring E.Escalating

B.Avoiding

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called reserves. A.Just in case B.Contingency C.Padded D.Management E.Unidentified risk

B.Contingency

________ reserves are identified for specific work packages and are distributed by the project manager and the team members. A.Work package B.Contingency C.Incidental D.Incremental E.Additional

B.Contingency

This response is used to increase the potential effect of an identified opportunity. A.Escalate B.Enhance C.Share D.Accept E.Exploit

B.Enhance

One of the following five choices is NOT involved in risk control. Which choice is it? A.Watching for new risks B.Establishing contingency funds C.Initiating contingency plans D.Executing the risk response strategy E.Establishing a change control system

B.Establishing contingency funds

This response is used to remove any uncertainty associated with an identified opportunity. A.Share B.Exploit C.Enhance D.Escalate E.Accept

B.Exploit

The measurement of how easy it would be to detect that the event was going to occur in time to take mitigating action (i.e., how much warning time we would have) is known as __________. A.mitigation B.detection difficulty C.detection measurement D.risk measurement E.risk assessment

B.detection difficulty

According to the Failure Mode and Effects Analysis (FMEA), Impact × Probability × Detection = __________. A.risk difficulty B.risk value C.risk assessment D.risk severity E.risk mitigation

B.risk value

When considering risk response development, changing the plan to eliminate the risk or condition is known as ____________ the risk. A.transferring B.retaining C.escalating D.avoiding E.diminishing

D.avoiding

A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality. A.management plan B.alternative risk plan C.alternative plan D.contingency plan E.risk management plan

D.contingency plan

A Risk Response Matrix contains all of the following EXCEPT A. a trigger. B.a response. C.a contingency plan. D.when the risk will occur. E.who is responsible.

D.when the risk will occur.

Which of the following is NOT one of the potential responses to a specific risk event? A.Transferring B.Retaining C.Ignoring D.Avoiding E.Mitigating

C.Ignoring

Which verb best characterizes the concept of 'Escalate' when used as a risk response. A.Accelerate B.Exacerbate C.Enhance D.Increase E.Notify

E.Notify

A key distinction between a risk response and a contingency plan is? A.a risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. B. ponse is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning. C.a risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. D.a risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails. E.a risk response is established only for moderate risks while contingency plans are established for major risks.

A.a risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.

The initial step in the risk management process is to A.identify the risks. B.determine the level of acceptable risk. C.set aside funds for managing the risks. assess the risk potential. D.set aside funds for managing the risks. E.determine the level of acceptable risk.

A.identify the risks

Flooding would be devastating to the project; however, it is very unlikely. The project manager is most likely to __________ this risk. A.retain B.distribute C.prepare for D.acknowledge E.diminish

A.retain

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a A.bad luck. B.risk. C.hazard. D.disaster. E.random chance.

B.risk.

_______ reserves are controlled by the project manager and the owner of the project and are used to cover major unforeseen risks to the entire project. A. Budgetary B.Management C.Contingency D.Unforeseen E.Incidental

B.Management

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following? A.Transferring B.Retaining C.Mitigating D.Escalating E.Avoiding

B.Retaining

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk A.impact assessment. B.severity matrix. C.scenario assessment. D.responsibility matrix. E.assessment form.

B.severity matrix.

One of the choices below refers to major unforeseen risks and endeavors to supply funds for the same. Which choice is it? A.Contingency reserves B.Project reserves C.Management reserves D.Activity reserves E.Time buffers

C.Management reserves

_______________ focuses on how to respond to events that have a positive impact on a project. A.Contingency management B.Prospect management C.Opportunity management D.Risk management E.Value management

C.Opportunity management

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to A.drop sharply and then level out. B.rise sharply and then level out. C.rise sharply. D.remain about the same. E.slowly drop.

C.rise sharply.

Which of the following responses best characterizes how to respond to a risk that has considerable upside, or opportunity? A.Mitigate risk B.Avoid risk C.Transfer risk D.Retain risk E.Escalate risk

E.Escalate risk

The ________form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it. A.Risk measurement B.Mitigation C.Detection difficulty D.Risk alleviation E.Risk assessment

E.Risk assessment

A ____________ (responsible for the work package) involved in risk assessment and mitigation will help focus attention on all aspects of risk management. A.project sponsor B.team leader C.project manager D.stakeholder E.line person

E.line person

Including the change control system within the ________ is a key to a successful project. A.risk management plan B.project baseline and risk management plan C.project baseline D.work breakdown structure E.work breakdown structure and project baseline

E.work breakdown structure and project baseline

Which of the following activities might you consider adding a time buffer to? A.You might consider adding a time buffer to any of these activities. B.Activities with scarce resources C.Noncritical activities with very little slack D.Merge activities that are prone to delays E.Activities with severe risks

A.You might consider adding a time buffer to any of these activities.

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it. A.escalating B.mitigating C.transferring D.avoiding E.retaining

C.transferring

A ________ is an alternative that will be used if a possible foreseen risk event becomes a reality. Alternative risk plan Management plan Risk management plan Alternative plan Contingency plan

Contingency plan

The significance of a risk is assessed in terms of the _____ and the ______ of the risk. A.impact, visibility B.notoriety, visibility C.frequency, visibility, D.likelihood, impact E.visibility, impact

D.likelihood, impact

When considering risk response development, reducing the likelihood that an event will occur and/or reducing the impact that an adverse event would have on a project is known as _________ the risk. A.escalating B.avoiding C.eliminating D.mitigating E.transferring

D.mitigating

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is known as a __________. A.milestone B.event whose probability of occurrence is unknown C.happening D.risk E.instant time

D.risk

The ________ form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it. A.risk alleviation B.risk measurement C.detection difficulty D.risk assessment E.mitigation

D.risk assessment

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as A.disaster protection. B.contingency planning. C.risk forecasting. D.risk management. E.scenario analysis.

D.risk management

When considering risk response development, passing risk to another party instead of changing it is known as ____________ the risk. A.diminishing B.avoiding C.escalating D.transferring E.retaining

D.transferring