CIS 348 / Week 6 / Chapter 6 / Exercise / Lab / Quiz / Assessment

All of the following statements are true regarding the RBS except for which one?

The RBS is similar to the WBS in that the lowest levels of both are easily assigned to a responsible party or owner.

The steps associated with the probability and impact matrix of the risk management plan.

1. Define the risk categories (these will assist the risk team in the Identify Risks process). 2. Determine how probability and impact will be defined (to be used in the Perform Qualitative Risk Analysis process). 3. Develop or modify the probability and impact matrix (to be used in the Perform Qualitative Risk Analysis process).

Risk Management Element: Methodology

A description of how you'll perform risk management and where you might find risk data that you can use in the later processes.

Planning contingency reserves is part of the ____ response strategy.

Active risk acceptance

Risk Management Element: Budgeting

Allows you to assign resources and estimate the costs of risk management and its methods, including contingency reserves.

Which of the following information gathering techniques of the Identify Risks process is based on a set of hypotheses or scenarios?

Assumptions analysis

Risk Attitude Element: Risk Appetite

The level of uncertainty the stakeholders are willing to accept in exchange for the potential positive impacts of the risk.

Negative Risk Strategy: Avoid

Changes the project management plan to protect the project objectives from the risk event.

Which of the following is not a part of identify risks process?

Decision tree diagram

Your project team is in the process of identifying project risks on your current project. The team has the option to use all of the following tools and techniques to diagram some of these potential risks except for which one?

Decision tree diagram

Which of the following risk identification techniques is described in the statement below? "It is used to gather information where participants don't know each other nor do they have to be present at the same location."

Delphi

Which of the following information gathering techniques is described in the statement below? "Project risk experts participate in this technique anonymously. A facilitator uses a questionnaire to solicit ideas about the important project risks. The responses are summarized and then re-circulated to the experts for further comment."

Delphi technique

Your project spans the entire organization. You would like to assess the risk of the project, but you are worried that some managers involved in the project could affect the outcome of any risk identification meeting. Your worry is based on the fact that some employees would not want to publicly identify risk events that could make their supervisors look bad. You would like to implement a method that would allow participants to anonymously identify risk events. Which risk identification method could you use?

Delphi technique

Risk Management Element: Reporting Formats

Describe the content of the risk register and the layout of the document.

You are using the interviewing technique of the Perform Quantitative Risk Analysis process. You intend to use normal and lognormal distributions. All of the following statements are true regarding this question except which one?

Distributions graphically display the impacts of risk to the project objectives.

Risk Management Element: Timing

Documents when and how often the risk management processes will be performed on the project.

T or F: In Delphi technique, people participating in the meeting know oneanother.

False

T or F: Root cause analysis involves digging deeper than the risk itself and finding the solution on the risk.

False

You are a project manager for Fountain of Youth Spring Water bottlers. Your project involves installing a new accounting system, and you're performing the risk-planning processes. You have identified several problems along with the causes of those problems. Which of the following diagrams will you use to show each problem and its causes and effects?

Fishbone diagram

Negative Risk Strategy: Transfer

Impacts the project budget and should be included in the cost estimate exercises.

Risk Management Element: Tracking

Includes a description of how you'll document the history of the risk activities for the current project and how the risk processes will be audited.

Prioritized list of quantified risks

Includes records that present the greatest threat to the project and their impacts.

Which of the following is the graphical representation of a situation showing casual influences, time ordering of events, and other relationships among variables and outcomes?

Influence diagram

Each of the following statements is true regarding the risk management plan except for which one?

It includes a description of the responses to risks and triggers.

What are contingency reserve funds used for?

Known unknowns

Your project team has completed the quantitative risk analysis for your project work. Based on their findings, they need to update the risk register with several pieces of information. Which one of the following components is likely to be updated in the risk register based on their analysis?

Listing of prioritized risks

Trends in perform quantitative risk analysis results

Make risks with the greatest threat to the project more evident, which gives the opportunity to perform further analysis.

Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest will prevent your equipment from arriving on time. You identified a risk response strategy for this risk and have arranged for a local company to lease you the needed equipment until yours arrives. This is an example of which risk response strategy?

Mitigate

Your stakeholders have asked for an analysis of the cost risk. All of the following are true except for which one?

Monte Carlo analysis is a modeling technique that computes project costs one time.

Assessing the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks describe which of the following processes?

Perform Qualitative Risk Analysis

All of the following are true regarding the Perform Qualitative Risk Analysis process except which one?

Perform Qualitative Risk Analysis is an easy method of determining risk probability and impact and usually takes a good deal of time to perform.

Monte Carlo analysis can help predict the impact of risks on project deliverables. This is an element of one of the tools and techniques of which of the following processes?

Perform Quantitative Risk Analysis

Which of the following processes assesses the likelihood of risk occurrences and their consequences using a numerical rating?

Perform Quantitative Risk Analysis

Which of the following processes quantifies the aggregate risk exposure for the project by assigning numeric probabilities to risks and their impacts on project objectives?

Perform quantitative risk analysis

Kevin is the project manager of the HQ Project for his organization. He's been working with the project team and some key stakeholders to develop the project's risk management plan. The plan defines the methodology for risk management, roles and responsibilities, budgeting, time, risk categories, definitions of risk probability and impact, revised stakeholder tolerances, reporting formats, risk tracking, and what other element?

Probability and impact matrix

You are the project manager for a new website for the local zoo. You need to perform the Perform Qualitative Risk Analysis process. When you've completed this process, you'll produce all of the following as part of the project documents updates output except which one?

Probability of achieving time and cost estimates

You have been assigned as the project manager for a new project that involves building of a new roadway between the city airport to a designated point within the city. You have worked with your team and the stakeholders to identify and prioritize the risks. However, there are three risks of the same priority. Which of the following will help you to make a decision as to which risk you should be addressing first?

Quantitative analysis

Negative Risk Strategy: Mitigate

Reduces the probability of a risk event occurring or its impacts to an acceptable level.

Probability of achieving the cost and time objectives

Requires a thorough understanding of the current project purposes and knowledge of the risks.

Which of the following terms best describes the statement below? "It is a hierarchically organized depiction of the identified project risks arranged by risk category."

Risk breakdown structure (RBS)

Which of the following documents is an output of the plan risk management process?

Risk management plan

Which of the following individuals responds to a risk with the pre-planned risk response?

Risk owner

Adrian is a project manager for a new project using a technology that has recently been released and there's relatively little information about the technology. Initial testing of the technology makes the use of it look promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to consider the technology factors a risk for her project. Where should she document the risks associated with this technology so that she can track the risk status and responses?

Risk register

On which of the following documents do you work throughout the risk management processes?

Risk register

Which of the following terms defines the degree, amount, or volume of risk that an organization or individual will withstand?

Risk tolerance

Risk attitude is an enterprise environmental factor that you should evaluate when performing the Plan Risk Management process. Risk attitude consists of all of the following elements except for which one?

Risk urgency

Risk Attitude Element: Risk Tolerance

The degree of the risk that will not affect the organization or individual.

Probabilistic analysis of the project

The forecasted results of the project schedule and costs as determined by the outcomes of risk analysis.

Risk Attitude Element: Risk Threshold

The level of uncertainty the organization is willing to operate within.

You are constructing a probability and impact matrix for your project. Which of the following statements is true?

The probability and impact matrix are predetermined thresholds that use the risk's probability multiplied by the impact of the risk event to determine an overall risk score.

You work for a large manufacturing plant. You are working on a new project to release an overseas product line. This is the company's first experience in the overseas market, and it wants to make a big splash with the introduction of this product. The stakeholders are a bit nervous about the project and historically proceed cautiously and take a considerable amount of time to examine information before making a final decision. The project entails producing your product in a concentrated formula and packaging it in smaller containers than the US product uses. A new machine is needed to mix the ingredients into a concentrated formula. After speaking with one of your stakeholders, you discover that this will be the first machine your organization has purchased from your new supplier. Which of the following statements is true given the information in this question?

The question describes risk tolerance levels of the stakeholders, which should be considered when performing the Plan Risk Management process.

Your team has identified the risks on the project and determined their risk score. The team is in the midst of determining what strategies to put in place should the risks occur. After some discussion, the team members have determined that the risk of losing their network administrator is a risk they'll just deal with if and when it occurs. Although they think it's a possibility and the impact would be significant, they've decided to simply deal with it after the fact. Which of the following is true regarding this question?

This is a response strategy for either positive or negative risks known as passive acceptance.

You've identified a risk event on your current project that could save $500,000 in project costs if it occurs. Your organization is considering hiring a consulting firm to help establish proper project management techniques to assure it realizes these savings. Which of the following is true based on this statement?

This is a risk event that should be shared to take full advantage of the potential savings.

Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest might prevent your equipment from arriving on time. She wanted to give you a heads-up and asked that you return the call. Which of the following statements is true?

This is a trigger.

You've identified a risk event on your current project that could save $100,000 in project costs if it occurs. Which of the following is true based on this statement?

This risk event is an opportunity to the project and should be exploited.

Your project team has identified several potential risks on your current project that could have a significant impact if they occurred. The team examined the impact of the risks by keeping all the uncertain elements at their baseline values. What type of diagram will the team use to display this information?

Tornado diagram

T or F: In Brainstorming, one person's idea might spawn another idea, and so on, so that by the end of the session all the possible risks are identified.

True

Negative Risk Strategy: Accept

Used for risks that pose either threats or opportunities to the project.

You are an experienced Project Manager that has been entrusted with a project to develop a machine which produces auto components. With your experience on these kinds of projects, you have compiled the final list of all possible risks and have included them in your risk register. Which of the following is probably true about your project?

Your program manager is unhappy as you have created too many risks.

The information-gathering techniques used in the Identify Risks process include all of the following except:

checklist analysis.

The inputs of the Perform Qualitative Risk Analysis process.

• Risk management plan • Scope baseline • Risk register • Enterprise environmental factors • Organizational process assets