Project Management - Ch. 7

Risks are evaluated in terms of Time and impact. Cost and schedule. Likelihood and impact. Likelihood and cost. Impact and cost.

c

The initial step in the risk management process is to Set aside budget funds for managing the risks. Identify the risks. Appoint a risk manager. Determine the level of acceptable risk. Assess the risk potential.

b

Which of the following groups should NOT be a part of the risk identification process? Vendors All of these groups can be included in the risk identification process Subcontractors Customers Project team

b

what type of contingency is typically required to manage a schedule risk , i.e. finishing a project late? a. back up strategies b. budget reserves, i.e. cash c. mitigation of risk likelihood d. inflation factor adjustments

b

which mitigation strategy is normally first pursued to minimize the cost impact of a risk event occurring? a. avoidance b. reduce likelihood c. reduce impact

b

A list of questions that address traditional areas of uncertainty on a project is termed a Query. Checklist. Risk profile. Questionnaire. Research matrix.

c

The risk assessment form contains all of the following EXCEPT When the risk event may occur. Potential impact of the risk event. Who will detect the occurrence of the risk event. Difficulty of detecting the occurrence of the risk event. Likelihood of the risk event occurring.

c

The chances of a risk event occurring as a project proceeds through its life cycle tend to Slowly rise. Drop sharply and then level out. Remain about the same. Slowly drop. Rise sharply and then level out.

d

Which of the following is NOT one of the steps in the risk management process? Risk response development Risk assessment Risk identification Risk tracking Risk response control

d

in a generic project life cycle, which phase has the highest cost should a negative risk event occur? a. scope development b. defining c. planning d. delivering

d

Risks that can result in a system or process that will not work are known as Cost risks. Funding risks. Schedule risks. Unnecessary risks. Technical risks.

e

which statement is correct with respect to transferring risk? a. transfer of risk does not change the likelihood or impact b. transfer of risk increases total cost of the risk occurring c. transferring risk infers postponement or delay of a risk occurrence

a

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as Contingency planning. Risk management. Disaster protection. Risk forecasting. Scenario analysis.

b

A fixed price contract is an example of Ignoring risk. Avoiding risk. Accepting risk. Mitigating risk. Transferring risk.

e

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a Bad luck. Disaster. Random chance. Hazard. Risk.

e

Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? Avoiding Transferring Mitigating Retaining Ignoring

a

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk Severity matrix. Assessment form. Responsibility matrix. Impact assessment. Scenario assessment.

a

Tools such as a risk assessment form and a risk severity matrix are used to. Assess risks. Regulate risks. Control risks. Identify risks. Respond to risks.

a

what is the purpose of a contingency fund in executing a response to an opportunity (positive risk) occurring? a. to take advantage of opportunities b. to eliminate project risks c. none, it is not built into the original plan

a

Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? Activity reserves Time buffers Project reserves Management reserves Budget reserves

d

_______________ focuses on how to respond to events that have a positive impact on a project. Risk management Value management Prospect management Opportunity management Contingency management

d

A Risk Response Matrix contains all of the following EXCEPT Contingency plan. When the risk will occur. Response. Trigger. Who is responsible.

b

Which of the following is NOT one of the potential responses to a specific risk event? Retaining Ignoring Avoiding Mitigating Transferring

b

_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have. Warning assessment Detection difficulty Impact scaling Awareness level Probability analysis ©2017 McGraw-Hill Education. All rights reserved.

b

what is the benefit of a risk management plan for a project? a. preventing all project risk b. minimizing the impact of risks occurring c. creating multiple work breakdown structures d. providing flexibility for project scope development

b

Which of the following is NOT involved in risk control? Initiating contingency plans Establishing a change control system Watching for new risks Establishing contingency funds Executing the risk response strategy

d

After your team has successfully identified potential risks that could affect the project, what is the next step? Mitigate risks Decide how to respond to all risks Assess identified risks Create a risk breakdown structure Create contingency plans

c

One common mistake made early in the risk identification process is to Support participants being over pessimistic Give too much attention to past events Focus on objectives and not on the events that could produce objectives Not consider all possibilities Encourage participants be over optimistic

c

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to Rise sharply and then level out. Slowly drop. Slowly rise. Remain about the same. Drop sharply and then level out.

c

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following? Transferring Mitigating Retaining Ignoring Avoiding

c

what is required in order for risk response control to succeed? a. work breakdown structure dictionary b. mitigation of risk likelihood c. documentation of responsibility

c

where in the project life cycle should a project manager begin the risk identification process? a. scope development b. defining c. planning d. executing e. delivering

c

which term is used to best describe the documents needed to develop an adequate risk response control plan? a. work breakdown structure b. work breakdown structure dictionary c. risk register d. project scope

c

why is the second step of risk management to assess the risks identified in the first step? a. to determine what's missing b. to avert the risk c. to establish priorities for attention

c

A key distinction between a risk response and a contingency plan is A risk response is established only for moderate risks while contingency plans are established for major risks. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning.

d

Change management systems are designed to accomplish all of the following EXCEPT Reflect scope changes in baseline and performance measures. Review, evaluate, and approve/disapprove proposed changes formally. Identify expected effects of proposed changes on schedule and budget. All of these are examples of what change management systems are designed to accomplish. Track all changes that are to be implemented.

d

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it. Mitigating Ignoring Retaining Transferring Avoiding

d

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. Contingency breakdown structures Organizational breakdown structure Risk assessment Scenario analysis Risk breakdown structures

e

Which of the following is NOT included in a Failure Mode and Effects Analysis? Probability Risk value Detection Impact All of these are included

e