INEN 416 Chp 7

All of the following are included in the risk identification process except

Competitors

A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality.

Contingency plan

A Risk Response Matrix contains all of the following except

Contingency plan Trigger Who is responsible Response ALL of these are included in the matrix

The ________ impact of a risk event in a project is less if the event occurs earlier rather than later.

Cost

One of the keys to success in risk identification is

Critical thinking

The likelihood of a risk event occurring ________ as a project goes through its life cycle.

Decreases

Change management systems are designed to accomplish all of the following except:

ALL of the above are correct

The "Snapshot from Practice" case where Ellipsus Systems developed parallel prototype systems (WAP and JAVA) is an example of _________ a risk.

Avoiding

Technical risks are:

Can often be the kind that cause the project to be shut down. Problematic Both A and B are correct

The vertical scale on the Risk Severity Matrix measures the _________ of a potential risk event.

Likelihood

The two scales of a risk severity matrix measure

Likelihood, impact

________ reserves are controlled by the project manager and used to cover major unforeseen risks to the entire project.

Management

Which of the following is typically included in risk profiles?

Management Aspects Technical Aspects Both A and C

Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project?

Management reserves

Which of the following would not be considered a threat?

Meeting the project schedule

The 1999 NASA Mars Climate Orbiter is an example of

Mismanaged risk control

Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.

Mitigating

The demolition of the Seattle Kingdome (Snapshot from Practice) is an example of which of the following?

Mitigating

Which of the following is used to review activity and project risk?

PERT

In a ________, three different estimates of activity times are used to statistically predict the time an activity will take to complete.

Probability analysis

Which of the following is not one of the probability analysis tools?

Ratio/range analysis

If a risk event is very unlikely to occur the project owner would probably ________ the risk.

Retain

The risk associated with one of the key members being stuck by lightning would most likely be handled by which of the following?

Retaining

An uncertain event or condition that, if it occurs, has a positive or negative effect on a project objectives is termed?

Risk

A ____________ is useful for summarizing how the project team plans to manage risks that have been identified.

Risk Response Matrix

The ________ form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it.

Risk assessment

The first step in the Risk Management process is ________.

Risk identification

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as

Risk management

A ________ is a list of questions that address traditional areas of uncertainty on a project.

Risk profile

A list of questions that address traditional areas of uncertainty on a project is termed a risk

Risk profile

Detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners and current status is called:

Risk register

A ________ identifies what to do if a potential risk event actually occurs.

Risk response matrix

The ________ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks.

Risk severity

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk

Risk severity matrix

Which of the following is not one of the steps in the risk management process?

Risk tracking

The easiest and most commonly used technique for analyzing risks is _____ analysis.

Scenario

The easiest and most commonly used technique for analyzing risks is ________.

Scenario analysis

When the entertainment industry formed a consortium to define a common operating format for DVD it was ________ the risk.

Sharing

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

Slowly drop

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to

Slowly rise

Risk events such as inflation, market acceptance, and government regulations are referred to as ________.

Threats

Performance bonds, warranties, and insurance are examples of ________ a risk.

Transferring

A risk profile is a list of questions that have been developed and refined from previous, similar projects.

True

Budget reserves are setup 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

Change management systems involve reporting, controlling, and recording changes to the project baseline.

True

Contingency funding is made up of budget reserves and management reserves.

True

Fixed price contracts are an example of transferring risk from an owner to a contractor.

True

In a Risk Severity Matrix a green zone risk is considered inconsequential and ignored unless their status changes.

True

One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.

True

Risks such as inflation and monetary exchange rates are not usually included in a project's risk assessment.

True

Since the goal is to find problems before they happen, the project manager should encourage critical thinking when it comes to risk identification.

True

The FMEA method calculates a risk value by assigning ease of detection ratings to the key risk elements.

True

The probability that a risk event will occur is higher during the initial stages of a project.

True

The quality and credibility of the risk analysis process requires that different levels of risk probabilities and impacts be defined.

True

The risk assessment form contains all of the following except

Who will detect the occurrence of the risk event

Performance bonds, warranties, and guarantees are financial instruments used to share risk.

False

Project managers need to establish an environment in which participants feel comfortable raising concerns and admitting mistakes.

False

Scheduling outdoor work in the summer, investing in up front safety training, and choosing high quality materials are examples of retaining a risk.

False

The Risk Severity Matrix rates risk events based upon schedule and cost.

False

The first step in the risk management process is Risk Assessment.

False

The risk identification process should be limited to just the core project team.

False

The initial step in the risk management process is to

Identify the risks

Which of the following is not one of the potential responses to a specific risk event?

Ignoring

The horizontal scale on the Risk Severity Matrix measures the _________ of a potential risk event.

Impact

Which of the following is not included in a Failure Mode and Effects Analysis?

Impact Probability Detection Risk value ALL of these are included

In the beginning the focus of risk management should be on risks that

Impact the whole project

Due to the impact over a long period of time, risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.

False

During risk identification the smaller risks should be identified first because they will naturally lead to identifying the larger risks.

False

Adopting proven technology instead of experimental technology is an example of mitigating a risk.

False

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.

Budget

________ reserves are identified for specific work packages and cover risks that have a low probability of occurring.

Budget

This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks.

FMEA analysis

In __________ the Risk Severity Matrix is extended by including the ease of detecting a risk event occurring.

Failure Mote and Effects Analysis (FMEA)

One common mistake made early in the risk identification process is to

Focus on objectives and not on the events that could produce consequences

A risk profile is a list of questions that address traditional areas of uncertainty on a project that answers developed from:

From previous, similar projects