ch7

Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? Mitigating Retaining Ignoring Avoiding

Avoiding

26. The demolition of the Seattle Kingdome (Snapshot from Practice) is an example of which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

a

8. In the beginning the focus of risk management should be on risks that A. Impact the whole project B. Impact the critical path C. Are known D. Have the greatest cost impact E. Have the greatest schedule impact

a

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

a

10. Which of the following would not be considered a threat? A. Inflation B. Meeting the project schedule C. International disruptions D. Economic conditions E. Competition

b

15. The easiest and most commonly used technique for analyzing risks is _____ analysis. A. Probability B. Scenario C. Payback D. Risk/reward E. Impact

b

21. This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks. A. PERT simulation B. FMEA analysis C. Ratio/range analysis D. Probability analysis E. Semi-quantitative analysis

b

27. The risk associated with one of the key members being stuck by lightning would most likely be handled by which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

b

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

b

31. Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? A. Budget reserves B. Management reserves C. Time buffers D. Both B and C are correct E. A, B, and C are all correct

b

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

b

13. All of the following are included in the risk identification process except A. Customers B. Subcontractors C. Competitors D. Vendors E. None of these are included

c

18. The risk assessment form contains all of the following except A. Likelihood of the risk event occurring B. Potential impact of the risk event C. Who will detect the occurrence of the risk event. D. Difficulty of detecting the occurrence of the risk event E. When the risk event may occur

c

23. Which of the following is used to review activity and project risk? A. NPV B. S-curves C. PERT D. Decision trees E. All of these can be used

c

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

c

An uncertain event or condition that, if it occurs, has a positive or negative effect on a project objectives is termed. A. Random chance B. A disaster C. Risk D. Hazard E. Bad luck

c

The initial step in the risk management process is to A. Determine the level of acceptable risk B. Assess the risk potential C. Identify the risks D. Set aside budget funds for managing the risks E. Appoint a risk manager

c

12. Which of the following is typically included in risk profiles? A. Management aspects B. Market aspects C. Technical aspects D. Both A and C are included E. A, B, and C are all included

d

16. A risk profile is a list of questions that address traditional areas of uncertainty on a project that answers developed from: A. When the event might occur in the project B. Chances of the event occurring C. Interaction with other parts of the project or with other projects D. From previous, similar projects E. Magnitude or severity of the event's impact

d

29. Technical risks are: A. Can often be the kind that cause the project to be shut down. B. Problematic C. Imposed duration dates D. Both A and B are correct E. A, B, and C are all correct

d

30. Detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners and current status is called: A. Management reserves B. Change control C. Contingency reserves D. Risk register E. Risk profiles

d

9. The 1999 NASA Mars Climate Orbiter is an example of A. Disaster avoidance through proactive risk management B. Murphy's Law C. Proper use of critical thinking D. Mismanaged risk control E. Using historical records to assess risk

d

25. A Risk Response Matrix contains all of the following except A. Contingency plan B. Trigger C. Who is responsible? D. Response E. All of these are included in the matrix

e

32. Change management systems are designed to accomplish all of the following except: A. Track all changes that are to be implemented B. Review, evaluates, and approve/disapprove proposed changes formally C. Identify expected effects of proposed changes on schedule and budget D. Reflect scope changes in baseline and performance measures E. All of the above are correct

e

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

e

_____________ response is used to increase the potential effect of an identified opportunity. Exploit Share Enhance Accept

enhance

Risks are evaluated in terms of ____________. Likelihood and cost. Impact and cost. Time and impact. Likelihood and impact.

likelihood and impact

A key distinction between a risk response and a contingency plan is A. A risk response is established only for moderate risks while contingency plans are established for major risks. B. 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. C. A risk response 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. D. 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.

B

A Risk Response Matrix contains all of the following EXCEPT ___________. Trigger Who is responsible Response When the risk will occur

When the risk will occur

11. A list of questions that address traditional areas of uncertainty on a project is termed a risk A. Risk profile B. Questionnaire C. Research D. Query E. Checklist

a

14. One of the keys to success in risk identification is A. Critical thinking B. Optimism C. Pessimism D. A "can do" attitude E. All of these are correct

a

20. Which of the following is not one of the probability analysis tools? A. Ratio/range analysis B. Decision tree C. PERT simulation D. PERT E. All of these are probability analysis tools

a

One common mistake made early in the risk identification process is to A. Not all possibilities are considered B. Participants are over-optimistic C. Participants are over-pessimistic D. focus on consequences and not on the events that could produce consequences E. Too much attention is given to past events

d

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

d

17. The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk A. Assessment form B. Responsibility matrix C. Scenario assessment D. Impact assessment E. Risk severity matrix

e

19. The two scales of a risk severity matrix measure A. Time, cost B. Cost, schedule C. Impact, cost D. Time, impact E. Likelihood, impact

e

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

e