Chapter 11

_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives. a. Performing quantitative risk analysis c. Controlling risk b. Planning risk responses d. Performing qualitative risk analysis

Planning risk responses

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk. a. Risk enhancement c. Risk sharing b. Risk acceptance d. Risk exploitation

Risk acceptance

_____ involves eliminating a specific threat, usually by eliminating its causes. a. Risk avoidance c. Risk transference b. Risk acceptance d. Risk mitigation

Risk avoidance

_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk. a. Risk exploitation c. Risk enhancement b. Risk sharing d. Risk acceptance

Risk enhancement

_____ involves doing whatever you can to make sure the positive risk happens. a. Risk exploitation c. Risk enhancement b. Risk sharing d. Risk acceptance

Risk exploitation

_____ risks refer to those that are direct results of implementing risk responses. a. Architectural c. Residual b. Primary d. Secondary

Secondary

_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks. a. SharePoint portal c. Expectations management matrix b. Probability/impact matrices or charts d. Top Ten Risk Item Tracking

Top Ten Risk Item Tracking

A _____ person achieves a balance between risk and payoff. a. risk-seeking c. risk-fearing b. risk-averse d. risk-neutral

risk-neutral

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake. a. risk-seeking c. risk-neutral b. risk-averse d. risk-indifferent

risk-seeking

A _____ is a technique used to show the effects of changing one or more variables on an outcome. a. sensitivity analysis c. Monte Carlo analysis b. decision tree d. systems analysis

sensitivity analysis

What is the first step in a Monte Carlo analysis? a. Determine the probability distribution of each variable. b. For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable. c. Assess the range for the variables being considered. d. Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables.

Assess the range for the variables being considered

_____ are predefined actions that the project team will take if an identified risk event occurs. a. Secondary risks c. Contingency plans b. Workarounds d. Management reserves

Contingency plans

_____ 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. a. Performing quantitative risk analysis c. Controlling risk b. Planning risk responses d. Performing qualitative risk analysis

Controlling risk

_____ involves determining which risks are likely to affect a project and documenting the characteristics of each. a. Identifying risks c. Performing qualitative risk analysis b. Planning risk management d. Performing quantitative risk analysis

Identifying risks

_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions. a. Brainstorming c. The Delphi technique b. Monte Carlo analysis d. Interviewing

Interviewing

_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results. a. Sensitivity c. Monte Carlo b. Systems d. NPV

Monte Carlo

_____ involves prioritizing risks based on their probability and impact of occurrence. a. Performing qualitative risk analysis c. Planning risk responses b. Identifying risks d. Performing quantitative risk analysis

Performing qualitative risk analysis

_____ involves numerically estimating the effects of risks on project objectives. a. Performing qualitative risk analysis c. Identifying risks b. Planning risk responses d. Performing quantitative risk analysis

Performing quantitative risk analysis

_____ involves deciding how to approach and plan the risk management activities for the project. a. Identifying risks c. Performing qualitative risk analysis b. Planning risk management d. Performing quantitative risk analysis

Planning risk management

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence. a. Risk avoidance c. Risk transference b. Risk acceptance d. Risk mitigation

Risk mitigation

_____ involves allocating ownership of the risk to another party. a. Risk exploitation c. Risk enhancement b. Risk sharing d. Risk acceptance

Risk sharing

_____ involves shifting the consequence of a risk and responsibility for its management to a third party. a. Risk avoidance c. Risk transference b. Risk acceptance d. Risk mitigation

Risk transference

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place. a. Workarounds c. Contingency plans b. Fallback plans d. Triggers

Workarounds

A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain. a. decision tree c. workaround b. activity-on-arrow d. backward pass

decision tree

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other. a. risk breakdown structure c. process flow chart b. influence diagram d. work breakdown structure

influence diagram

Identifying risks is a subprocess of the _____ process of project risk management. a. planning c. monitoring and controlling b. executing d. closing

planning

Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management. a. planning c. monitoring and controlling b. executing d. closing

planning

The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring. a. Top Ten Risk Item Tracking chart c. probability/impact matrix b. requirements traceability matrix d. expectations management matrix

probability/impact matrix

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area. a. integration c. procurement b. quality d. human resources

procurement

Risk utility rises at a decreasing rate for a _____ person. a. risk-seeking c. risk-neutral b. risk-averse d. risk-indifferent

risk-averse