MIS 4310- Chapter 11
Identified risks may not materialize, or their probabilities of occurrence or loss may diminish.
True
Contingency plans are predefined actions that the project team will take if an identified risk event occurs.
True
Which process involves determining what risks are likely to affect a project and documenting the characteristics of each?
identifying risks
Which is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions?
interviewing
Which action involves shifting the consequence of a risk and responsibility for its management to a third party?
risk transference
Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project.
False
Which analysis technique simulates a model's outcome many times to provide a statistical distribution of the calculated results?
Monte Carlo
Risks can have both negative and positive effects on meeting project objectives.
True
The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value
True
Unknown risks can be managed proactively.
False
The risk register can be created with a simple Microsoft Word or Excel file.
True
The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups.
False
Top Ten Risk Item Tracking is a quantitative risk analysis tool.
False
One possible response to managing negative risk it to accept the potential effects from the risk.
True
Which action involves doing whatever you can to make sure the positive risk happens?
risk exploitation
Which action involves reducing the impact of a risk event by reducing the probability of its occurrence?
risk mitigation
Which process involves numerically estimating the effects of risks on project objectives?
performing quantitative risk analysis
Which type of person achieves a balance between risk and payoff?
risk-neutral
Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
False
What is the first step in a Monte Carlo analysis?
Collect the most likely, optimistic, and pessimistic estimates for the variables in the model
_____ are predefined actions that the project team will take if an identified risk event occurs.
Contingency plans
The last step in project risk management is deciding how to address the knowledge area for a particular project by performing risk management planning.
False
The lower the earned monetary value calculation for a project, the chances of project success is higher.
False
_____ is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.
Top Ten Risk Item Tracking
A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of a matrix or axis on a chart and the relative impact of the risk occurring on the other.
True
A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks.
True
The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
True
The main output of qualitative risk analysis is updating the risk register
True
Which diagramming technique is used to help select the best course of action in situations in which future outcomes are uncertain?
decision tree
The main outputs of which process include a risk register, risk report, and project documents updates?
identifying risks
Identifying risks is a subprocess of the _____ process of project risk management.
planning
What process involves deciding how to approach and plan the risk management activities for the project?
planning risk management
Which process involves taking steps to enhance opportunities and reduce threats to meeting project objectives?
planning risk responses
The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.
probability/impact matrix
Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.
procurement
Which action applies to positive risks when the project team cannot or chooses not to take any actions toward a risk?
risk acceptance
Which action involves eliminating a specific threat, usually by eliminating its causes?
risk avoidance
Which action involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk?
risk enhancement
Which document contains results of various risk management processes; it is often displayed in a table or spreadsheet format?
risk register
Which action involves allocating ownership of the risk to another party?
risk sharing
Risk utility rises at a decreasing rate for a _____ person.
risk-averse
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
risk-seeking
Which risks are direct results of implementing risk responses?
secondary
Which technique is used to show the effects of changing one or more variables on an outcome?
sensitivity analysis
Large, complex projects involving leading-edge technologies often require extensive quantitative risk analysis.
True
_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.
Workarounds
Which process 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?
monitoring risk
Which process involves prioritizing risks based on their probability and impact of occurrence?
performing qualitative risk analysis
Which process involves prioritizing risks based on their probability of occurrence and impact?
performing qualitative risk analysis
