Chapter 7

A ____________ (responsible for the work package) involved in risk assessment and mitigation will help focus attention on all aspects of risk management. A)Project Manager B)Line Person C)Stakeholder D)All of these choices are correct.

A

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

A

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

A

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. A)Risk breakdown structures B)Contingency breakdown structures C)Scenario analysis D)Organizational breakdown structure E)Risk assessment

A

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

A

Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk. A)Mitigating B)Retaining C)Ignoring D)Transferring E)Avoiding

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

This response is used to remove any uncertainly associated with an identified Opportunity. A)Exploit B)Share C)Enhance D)Accept

A

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)Mitigating B)Retaining C)Ignoring D)Transferring E)Avoiding

A

_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have. A)Detection difficulty B)Impact scaling C)Probability analysis D)Awareness level E)Warning assessment

A

what is the purpose of a contingency fund in executing a response to an opportunity (positive risk) occurring?a. to take advantage of opportunitiesb. to eliminate project risksc. none, it is not built into the original plan

A

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

C

Funds that are for identified risks that have a low probability of occurring, that decrease as the project progresses and are distributed by the project manager and the team members are called ______ reserves. A) Management B) Contingency C) Budget D) Project

C

The implications of an identified change need to be assessed by: A)The primary project stakeholder. B)The Chief Fiscal Officer. C)A person with expertise related to the change. D)The authorizing project manager.

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

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

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

C

Tools such as a risk assessment form and a risk severity matrix are used to A)Identify risks. B)Control risks. C)Assess risks D)Regulate risks. E)Respond to risks.

C

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)Avoiding

C

where in the project life cycle should a project manager begin the risk identification process?a. scope developmentb. definingc. planningd. executinge. delivering

C

A Risk Response Matrix contains all of the following EXCEPT A)Contingency plan. B)Trigger. C)Who is responsible. D)Response. E)When the risk will occur.

E

A fixed price contract is an example of A)Avoiding risk. B)Transferring risk. C)Accepting risk. D)Ignoring risk. E)Mitigating risk.

E

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

E

Change management systems are designed to accomplish all of the following EXCEPT A)Track all changes that are to be implemented. B)Review, evaluate, 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 these are examples of what change management systems are designed to accomplish.

E

Risks are evaluated in terms of A)Likelihood and cost. B)Cost and schedule. C)Impact and cost. D)Time and impact. E)Likelihood and impact.

E

The chances of a risk event occurring as a project proceeds through its life cycle tend 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

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)Severity matrix.

E

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

E

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

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. E)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.

B

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)Create contingency plans D)Decide how to respond to all risks E)Mitigate risks

B

Based on the following, which event should you be most concerned about? Risk Event: Likelihood/Impact Bad weather 2/3 Design flaw3/5 Accident1/5 Shipment delay2/2 Power outage1/5 A)Bad weather B)Design flaw C)Accident D)Shipment delay E)Power outage

B

Just as contingency funds are established to absorb unplanned costs, managers use ______to cushion against potential delays.? A) Management reserves B) Time buffers C) Budget reserves D) Project buffers E) Project reserves

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

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)Mitigating B)Retaining C)Ignoring D)Transferring E)Avoiding

B

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 characterization table B)Risk response matrix C)Responsibility assignment matrix D)Risk identification table E)Risk assessment matrix

B

This response allocates some or all of the responsibility of realizing the identified Opportunity for the project. A)Exploit B)Share C)Enhance D)Accept

B

Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? A)Project reserves B)Management reserves C)Time buffers D)Activity reserves E)Budget reserves

B

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

B

what is the benefit of a risk management plan for a project?a. preventing all project riskb. minimizing the impact of risks occurringc. creating multiple work breakdown structuresd. providing flexibility for project scope development

B

which mitigation strategy is normally first pursued to minimize the cost impact of a risk event occurring?a. avoidanceb. reduce likelihoodc. reduce impact

B

An unanticipated event that occurs which is beneficial to a project is known as a(n) A)Management Reserve. B)Success Factor. C)Unscheduled Activity. D)Positive Risk.

D

Including the change control system within the ________ is a key to a successful project. A)Work Breakdown Structure B)Project Baseline C)Risk Management Plan D)Work Breakdown Structure and Project Baseline

D

Most changes on a project are related to A)Scope Changes. B)Improvement Changes. C)Implementing Contingency Plans. D)All of these choices are correct.

D

One common mistake made early in the risk identification process is to A)Not consider all possibilities. B)Encourage participants be over optimistic. C)Support participants being over pessimistic. D)Focus on consequences and not on the events that could produce consequences. E)Give too much attention to past events.

D

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it. A)Mitigating B)Retaining C)Ignoring D)Transferring E)Avoiding

D

This response is used when an identified Opportunity is not actively pursued. A)Exploit B)Share C)Enhance D)Accept

D

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

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

in a generic project life cycle, which phase has the highest cost should a negative risk event occur?a. scope developmentb. definingc. planningd. delivering

D