Chapter 7.7
A risk is an uncertain event that, if it occurs, can have a positive or negative effect on project objectives.
True
Although most risks are presented as something not desirable, there can also be desirable risks called Opportunities.
True
Change management systems involve reporting, controlling, and recording changes to the project baseline.
True
Contingency funding is made up of contingency reserves and management reserves.
True
Contingency reserves are set up to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.
True
Fixed-price contracts are an example of transferring risk from an owner to a contractor.
True
Having an environment where identified risks are treated professionally will lead to better control of risks.
True
While a "can do" attitude is essential during implementation, project managers have to encourage critical thinking when it comes to risk identification.
True
If, during risk response development, you successfully identify how you will respond to a risk, contingency planning is unnecessary.
False
Opportunities identified within a project are treated very different from risks.
False
Performance bonds, warranties, and guarantees are financial instruments used to share risk.
False
Responses to all identifiable risks should be a top priority for the project manager.
False
When considering risk value, the lower the value, the higher the level of risk.
False
When developing a response to a risk by scheduling outdoor work in the summer, investing in upfront safety training, or choosing high-quality materials, these are examples of retaining a risk.
False
Enhancing a risk is a tactic that seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.
False
A risk, which when analyzed, is discovered to have very modest downside but huge upside potential or opportunity. Such risks should be transferred, escalated and exploited.
False
Adopting proven technology instead of experimental technology is an example of mitigating a risk.
False
