391Hi-Track-4
24.____________________ e-mail that you do not need to save or respond to..
Answer: Delete
9.Few organizations develop their own risk questionnaires..
Answer: False
16.____________________ are indicators or symptoms of actual risk events..
Answer: Triggers
15.SWOT analysis can be used during risk identification by having project teams focus on the broad perspectives of potential risks for particular projects..
Answer: True
16.Some termination clauses state that the buyer can terminate a contract for any reason and give the supplier only 24 hours' notice..
Answer: True
17.A potential response to the risk event of a defective server might be the inclusion of a clause in a contract with the supplier to replace a defective server within a certain time period at a negotiated cost..
Answer: True
10.Many information technology professionals work on ____________________ projects where they never meet their project sponsors, other team members, or other project stakeholders..
Answer: virtual
1.Many private companies use the term procurement instead of purchasing..
Answer: False
9.If there is no need to buy any products or services from outside the organization, then there is no need to perform any of the other procurement management processes..
Answer: True
11.Potential risks can only be identified early in a project..
Answer: False
22.All meetings should have a(n) ____________________ and intended outcome..
Answer: purpose
12.Experts outside the company, including potential suppliers themselves, cannot provide expert judgment..
Answer: False
12.The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups..
Answer: False
14.Understanding the stakeholders' ____________________ can help in managing issues..
Answer: expectations
11.____________________ is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment..
Answer: Brainstorming
13.____________________ based on risks that have been encountered in previous projects provide a meaningful template for understanding risks in a current project..
Answer: Checklists
8._________________________ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level..
Answer: Contingency reserves - Contingency allowances
12.The basic concept of the ____________________ is to derive a consensus among a panel of experts who make predictions about future developments..
Answer: Delphi technique
20.______________________________ is the product of a risk event probability and the risk event's monetary value..
Answer: EMV - Expected monetary value - Expected monetary value (EMV)
10.It is always less effective to hire skilled consultants to perform specific tasks for a short period of time than to hire or keep employees on staff full time..
Answer: False
13.The buyer absorbs less of the risk with cost-reimbursable contracts than they do with fixed-price contracts..
Answer: False
14.It is uncommon for people to identify problems or opportunities without really understanding them..
Answer: False
16.Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project..
Answer: False
18.Lead times for purchases and acquisitions should not be included in a procurement management plan..
Answer: False
19.It is important to use appropriate words in a contract SOW such as may instead of must..
Answer: False
19.Negative and positive risks should always be included in the same probability/impact matrix or chart..
Answer: False
2.Good project risk management never goes unnoticed..
Answer: False
20.A contract SOW should not specify the location of the work..
Answer: False
20.A simple approach to using probability/impact information is to calculate risk factors..
Answer: False
22.A risk management review accomplishes one objective, it keeps management and the customer aware of the major influences that could prevent or enhance the project's success..
Answer: False
23.The main output of qualitative risk analysis is a decision tree..
Answer: False
24.Quantitative risk analysis and qualitative risk analysis must be done together..
Answer: False
25.The lower the EMV, the better..
Answer: False
3.Most people view offshore outsourcing as being good..
Answer: False
4.Negative risk management is like investing in opportunities..
Answer: False
5.Few organizations use some form of outsourcing to meet their information technology needs..
Answer: False
6.According to a 2008 report on IT outsourceing trends in the U.S. and Canada, application development is the least popular form of IT outsourcing and was used by only 25 percent of organizations surveyed..
Answer: False
7.The last step in project risk management is deciding how to address this knowledge area for a particular project by performing risk management planning..
Answer: False
8.The level of detail included in the risk management plan rarely varies across projects..
Answer: False
8.The success of many information technology projects that use outside resources is often due to good project cost management..
Answer: False
3._________________________ involves managing communications to satisfy the needs and expectations of project stakeholders and to resolve issues..
Answer: Managing stakeholder expectations
15._________________________ keeps stakeholders informed about how resources are being used to achieve project objectives..
Answer: Performance reporting
24.____________________ risks are risks that remain after all of the response strategies have been implemented..
Answer: Residual
18.____________________ are numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur..
Answer: Risk factors
5.____________________ is the amount of satisfaction or pleasure received from a potential payoff..
Answer: Risk utility - Risk tolerance
6.____________________ can facilitate the process of distributing information, when used properly..
Answer: Technology
1.Risk management is a frequently overlooked aspect of project management..
Answer: True
10.You can break down the technology risk category into hardware, software, and network technology..
Answer: True
11.Make-or-buy analysis involves estimating the internal costs of providing a product or service and comparing that estimate to the cost of outsourcing..
Answer: True
13.The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events..
Answer: True
14.The total value of the contract is a function of the quantities needed to complete the work..
Answer: True
15.Any type of contract should include specific clauses that take into account issues unique to the project..
Answer: True
17.Contents of the procurement management plan will vary with project needs..
Answer: True
18.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..
Answer: True
2.The cost savings and use of offshore resources lower inflation, increase productivity, and lower interest rates..
Answer: True
21.The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and monitoring a top-ten master list of risks..
Answer: True
26.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..
Answer: True
27.Several PC-based software packages are available that perform Monte Carlo simulations..
Answer: True
28.Increasing the project manager's authority is a strategy for mitigating technical and cost risks..
Answer: True
29.Selecting the most experienced project manager is recommended for reducing schedule risks..
Answer: True
3.Before you can improve project risk management, you must understand what risk is..
Answer: True
30.Project risk management does not stop with the initial risk analysis..
Answer: True
4.Many companies are realizing that they can use offshore outsourcing and create more jobs at home..
Answer: True
5.The cost for risk management should not exceed the potential benefits..
Answer: True
6.By reviewing the project scope statement, cost, schedule, and communications management plans, enterprise environmental factors, and organizational process assets, project teams can discuss and analyze risk management activities for their particular projects..
Answer: True
7.When an organization outsources work, it often does not have as much control over those aspects of projects that suppliers carry out..
Answer: True
22.Risk ____________________ involves accepting the consequences should a risk occur..
Answer: acceptance
23.Some professionals refuse to attend meetings if they do not have a(n) ____________________ ahead of time..
Answer: agenda
8.It is important to put information in context, especially if it is ____________________ news..
Answer: bad
1.Many experts agree that the greatest threat to the success of any project, especially information technology projects, is a failure to ____________________..
Answer: communicate
4.A(n) ______________________________ is a document that guides project communications..
Answer: communications management plan
18.When the stakes are high, ____________________ is never far away..
Answer: conflict
11.Many studies define project success as meeting project scope, time, and ____________________ goals..
Answer: cost
12.The ______________________________ includes a list of measures of success as well as priorities, expectations, and guidelines related to each measure..
Answer: expectations management matrix
14.System or process ____________________ are diagrams that show how different parts of a system interrelate..
Answer: flowcharts
20.Project team members may become stagnant or develop ____________________—conformance to the values or ethical standards of a group—if there are no conflicting viewpoints on various aspects of a project..
Answer: groupthink
6.The main output of the ____________________ process is the start of a risk register..
Answer: identifying risks
10.Inadequate planning, poor resource allocation, poor integration management, and lack of post-project review are risk conditions associated with the ____________________ project management knowledge area..
Answer: integration
25.A(n) _________________________ is a reflective statement documenting important things they have learned from working on the project..
Answer: lessons-learned report
9.Project managers should try to ____________________ the size of teams or sub teams to avoid making communications too complex..
Answer: limit
7.Many experts believe that the difference between good project managers and excellent project managers is their ability to nurture relationships and use empathic ____________________ skills..
Answer: listening
23.Examples of risk ____________________ include using proven technology, having competent project personnel, using various analysis and validation techniques, and buying maintenance or service agreements from subcontractors..
Answer: mitigation
1.Risk management can have a(n) ____________________ impact on selecting projects, determining the scope of projects, and developing realistic schedules and cost estimates..
Answer: positive
16.Team leaders often create consolidated ____________________ based on the information received from team members..
Answer: progress reports
2.The outputs of the _________________________ process are performance reports, organizational process assets updates, and change requests..
Answer: reporting performance
2.A project ____________________ is an uncertainty that can have a negative or positive effect on meeting project objectives..
Answer: risk
9.A(n) _________________________ is a hierarchy of potential risk categories for a project..
Answer: risk breakdown structure
7.A(n) ____________________ documents the procedures for managing risk throughout the project..
Answer: risk management plan
17.The ____________________ is the person who will own or take responsibility for the risk..
Answer: risk owner
15.A(n) ____________________ is a document that contains results of various risk management processes..
Answer: risk register
21.Communication skills training usually includes ____________________ activities in which participants learn concepts such as building rapport..
Answer: role-playing - role playing
13.The ____________________ statement clearly defines mandatory requirements and optional requirements..
Answer: scope
21.Many professionals use ____________________ to help make several common business decisions, such as determining break-even points based on different assumptions..
Answer: sensitivity analysis
5.The ______________________________ analysis includes information such as the contact person for the information, when the information is due, and the preferred format for the information..
Answer: stakeholder communications
17.An important technique for performance reporting is the ____________________ review meeting..
Answer: status
4.The idea of striving to balance risks and opportunities suggests that different organizations and people have different ____________________ for risk..
Answer: tolerances - tolerance
3.Given that all projects involve _____________________ that can have negative or positive outcomes, the question is how to decide which projects to pursue and how to identify and manage project risk throughout a project's life cycle..
Answer: uncertainties - uncertainty
19.A(n) ____________________ is a list of risks that are low priority, but are still identified as potential risks..
Answer: watch list
19.The ____________________ approach is the least desirable conflict-handling mode..
Answer: withdrawal
25.Project teams sometimes use ____________________—unplanned responses to risk events—when they do not have contingency plans in place..
Answer: workarounds
