CHAP 6 MGMT
You are a project manager for Fountain of Youth Spring Water bottlers. Your project involves installing a new accounting system, and you're performing the risk-planning processes. You have identified a variability risk and ambiguity risk. Which of the following is not true regarding these risks? A. Variability risk is uncertainty about the event or activity. B. Ambiguity risk is addressed using data analysis. C. These are types of non-event risks. D. Unexpected weather or unexpected resource availability is a type of ambiguity risk.
Ambiguity risk is addressed using data analysis.
You are performing the Perform Qualitative Risk Analysis process and want to display proximity and connectivity and their impacts on the project. Which of the following methods will you use? A. Tornado diagram B. Influence diagram C. Histogram D. Bubble chart
Bubble chart
You are using the representations of uncertainty technique of the Perform Quantitative Risk Analysis process. All of the following statements are true regarding this technique except for which one? A. Beta and triangular distributions are commonly used in this process. B. Normal and lognormal distributions use mean and standard deviation to quantify risks. C. Continuous probability distributions are graphically displayed and depict the impact of the risk event. D. Triangular distributions rely on optimistic, pessimistic, and most likely estimates to quantify risks.
Continuous probability distributions are graphically displayed and depict the impact of the risk event.
You are the project manager for a new website for the local zoo. You need to perform the Perform Qualitative Risk Analysis process. When you've completed this process, you'll produce all of the following as part of the project documents updates output except which one? A. Risk priority level B. Watch list of low-priority risks C. Forecasted results of the project schedule and costs D. Risks grouped by categories
Forecasted results of the project schedule and costs
Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest will prevent your equipment from arriving on time. You identified a risk response strategy for this risk and have arranged for a local company to lease you the needed equipment until yours arrives. This is an example of which risk response strategy? A. Transfer B. Acceptance C. Mitigate D. Avoid
Mitigate
Your stakeholders have asked for an analysis of the cost risk. All of the following are true except for which one? A. Monte Carlo analysis is the preferred method to use to determine the cost risk. B. Monte Carlo analysis is a simulation technique that computes project costs one time. C. A traditional work breakdown structure can be used as an input variable for the cost analysis. D. Monte Carlo usually expresses its results as probability distributions of possible costs.
Monte Carlo analysis is a simulation technique that computes project costs one time.
Assessing the probability and consequences of identified risks to the project objectives, assigning a risk score to each risk, and creating a list of prioritized risks describe which of the following processes? A. Perform Quantitative Risk Analysis B. Identify Risks C. Perform Qualitative Risk Analysis D. Plan Risk Management
Perform Qualitative Risk Analysis
All of the following are true regarding the Perform Qualitative Risk Analysis process except which one? A. Probability and impact and expert interviews are used to help correct biases that occur in the data you've gathered during this process. B. The probability and impact matrix is used during this process to assign red, yellow, and green conditions to risks. C. Perform Qualitative Risk Analysis is an easy method of determining risk probability and impact and usually takes a good deal of time to perform. D. Risk urgency assessment is a tool and technique of this process used to determine which risks need near-term response plans.
Perform Qualitative Risk Analysis is an easy method of determining risk probability and impact and usually takes a good deal of time to perform.
You are using a defined set of risk categories to determine both individual risks and overall project risks. You will also use PESTLE, a strategic analysis tool to assist in determining overall project risk. You are also using the lowest level of the RBS to help in constructing which of the following based on the information in this question? A. Checklist B. Prompt list C. RCA D. Decision tree analysis
Prompt list
Risk attitude is an enterprise environmental factor that you should evaluate when performing the Plan Risk Management process. Risk attitude consists of all of the following elements except for which one? A. Risk appetite and risk urgency B. Risk threshold and risk appetite C. Risk urgency and risk threshold D. Risk tolerance and risk appetite
Risk threshold and risk appetite
You are using criticality analysis to determine risk impact. You have calculated an index for each risk and realize the more activities the risk impacts, the higher the index. The index is used as an input to a simulation. Which risk does criticality analysis assess? A. Cost B. Resource C. Schedule D. Quality
Schedule
All of the following statements are true regarding the RBS except for which one? A. The RBS is contained in the risk management plan. B. It describes risk categories, which are a systematic way to identify risks and provide a foundation for understanding for everyone involved in the project. C. The lowest level of the RBS can be used as a prompt list, which is a tool and technique of the Identify Risks process. D. The RBS is similar to the WBS in that the lowest levels of both are easily assigned to a responsible party or owner.
The RBS is similar to the WBS in that the lowest levels of both are easily assigned to a responsible party or owner.
You are constructing a probability and impact matrix for your project. Which of the following statements is true? A. The probability and impact matrix multiplies the risk's probability by the cost of the impact to determine an expected value of the risk event. B. The probability and impact matrix multiplies the risk's probability—which falls from 0.0 to 1.0—and the risk's impact for each potential outcome and then adds the result of the potential outcomes together to determine a risk score. C. The probability and impact matrix are predetermined thresholds that use the risk's probability multiplied by the impact of the risk event to determine an overall risk score. D. The probability and impact matrix multiplies the risk's probability by the risk impact—which both fall from 0.0 to 1.0—to determine a risk score.
The probability and impact matrix are predetermined thresholds that use the risk's probability multiplied by the impact of the risk event to determine an overall risk score.
You work for a large manufacturing plant. You are working on a new project to release an overseas product line. This is the company's first experience in the overseas market, and it wants to make a big splash with the introduction of this product. The stakeholders are a bit nervous about the project and historically proceed cautiously and take a considerable amount of time to examine information before making a final decision. The project entails producing your product in a concentrated formula and packaging it in smaller containers than the US product uses. A new machine is needed to mix the ingredients into a concentrated formula. After speaking with one of your stakeholders, you discover this will be the first machine your organization has purchased from your new supplier. Which of the following statements is true given the information in this question? A. The question describes risk threshold levels of the stakeholders, which should be considered when performing the Plan Risk Management process. B. This question describes the interviewing tool and technique used during the Identify Risks process. C. This question describes risk triggers that are derived using interviewing techniques and recorded in the risk register during the Perform Qualitative Risk Analysis process. D. This question describes a risk that requires a response strategy from the positive risk category.
The question describes risk threshold levels of the stakeholders, which should be considered when performing the Plan Risk Management process.
Each of the following statements is true regarding the risk management plan except for which one? A. The risk management plan is an output of the Plan Risk Management process. B. The risk management plan includes a description of the responses to risks and triggers. C. The risk management plan includes thresholds, scoring and interpretation methods, responsible parties, and budgets. D. The risk management plan is an input to all the remaining risk-planning processes.
The risk management plan includes a description of the responses to risks and triggers.
You've identified a risk event on your current project that could save $500,000 in project costs if it occurs. Your organization is considering hiring a consulting firm to help establish proper project management techniques in order to ensure it realizes these savings. Which of the following is true based on this statement? A. This is a risk event that should be accepted because the rewards outweigh the threat to the project. B. This risk event is an opportunity to the project and should be exploited. C. This risk event should be mitigated to take advantage of the savings. D. This is a risk event that should be shared to take full advantage of the potential savings.
This is a risk event that should be shared to take full advantage of the potential savings.
Your team has identified the risks on the project and determined their risk score. The team is in the midst of determining what strategies to put in place should the risks occur. After some discussion, the team members have determined that the risk of losing their network administrator is a risk they'll just deal with if and when it occurs. Although they think it's a possibility and the impact would be significant, they've decided to simply deal with it after the fact. Which of the following is true regarding this question? A. This is a negative response strategy. B. This is a positive response strategy. C. This is a response strategy for either positive or negative risk known as contingency planning. D. This is a response strategy for either positive or negative risks known as passive acceptance.
This is a response strategy for either positive or negative risks known as passive acceptance.
Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest might prevent your equipment from arriving on time. She wanted to give you a heads-up and asked that you return the call. Which of the following statements is true? A. This is a trigger. B. This is a contingency plan. C. This is a residual risk. D. This is a secondary risk.
This is a trigger.
You've identified a risk event on your current project that could save $100,000 in project costs if it occurs. Which of the following is true based on this statement? A. This is a risk event that should be accepted because the rewards outweigh the threat to the project. B. This risk event is an opportunity to the project and should be exploited. C. This risk event should be mitigated to take advantage of the savings. D. This is a risk event that should be avoided to take full advantage of the potential savings.
This risk event is an opportunity to the project and should be exploited.
Your project team has identified several potential risks on your current project that could have a significant impact if they occurred. The team examined the impact of the risks by keeping all the uncertain elements at their baseline values. Which of the following will the team use to display this information? A. S-curve B. Tornado diagram C. Influence diagram D. Histogram
Tornado diagram