Project Management and IT: chapter 11
_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.
A. Workarounds
_____ are predefined actions that the project team will take if an identified risk event occurs.
C. Contingency Plans
_____ involves allocating ownership of the risk to another party.
B. Risk Sharing
Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
False
Top Ten Risk Item Tracking is a quantitative risk analysis tool.
False
Quantitative risk analysis need not be done for projects that are large and complex.
True
Risks can have both negative and positive effects on meeting project objectives.
True
The risk register can be created with a simple Microsoft Word or Excel file.
True
A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
B. Influence Diagram
_____ involves deciding how to approach and plan the risk management activities for the project.
B. Planning Risk Management
____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.
B. Planning risk responses
_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.
B. Risk acceptence
Risk utility rises at a decreasing rate for a _____ person.
B. Risk- Averse
Identified risks may not materialize, or their probabilities of occurrence or loss may diminish.
True
Identifying risks is a subprocess of the _____ process of project risk management.
A. Planning
Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.
A. Planning
_____ involves eliminating a specific threat, usually by eliminating its causes.
A. Risk Avoidance
_____ involves doing whatever you can to make sure the positive risk happens.
A. Risk Exploitation
Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
A. Risk-seeing
What is the first step in a Monte Carlo analysis?
C. Assess the range for the variables being considered.
_____ involves numerically estimating the effects of risks on project objectives.
D. Performing quantitive risk analysis
Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project.
False
The last step in project risk management is deciding how to address this 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
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
Contingency plans are predefined actions that the project team will take if an identified risk event occurs.
True
The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and monitoring a top-ten master list of risks.
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
A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
A. Decision Tree
_____ involves determining which risks are likely to affect a project and documenting the characteristics of each.
A. Identifying Risks
_____ involves prioritizing risks based on their probability and impact of occurrence.
A. Performing qualitative risk analysis
A _____ is a technique used to show the effects of changing one or more variables on an outcome.
A. Sensitivity Analysis
A _____ person achieves a balance between risk and payoff.
D. Risk- neutral
_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.
D. Top Ten Risk Item Tracking
_____ 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.
C. Controlling Risk
_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.
C. Monte Carlo
The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.
C. Probability/impact matrix
Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.
C. Procurement
_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.
C. Risk Enhancments
____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.
D. Interviewing
_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.
D. Risk Mitigation
_____ risks refer to those that are direct results of implementing risk responses.
D. Secondary
The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.
True
_____ involves shifting the consequence of a risk and responsibility for its management to a third party.
C. Risk Transerence
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
Unknown risks can be managed proactively.
False
