Chapter 7

The lowest risk value that an identified risk can take is ________, while the highest risk value that an identified risk can take is ______.

1, 125

What is the risk value of a risk whose impact score is 5, whose probability score is 5 and whose detection score is 1?

25

What kind of plan goes into place should a risk event actually occur?

A contingency plan

Most changes on a project are related to

All of these alternatives are correct.

Which of the following groups should NOT be a part of the risk identification process?

All of these groups can be included in the risk identification process

Based on the following, which event should you be most concerned about? Risk Event. Likelihood. Impact. Bad weather. 23 Design flaw. 35 Accident 15 Shipment delay 22 Power outage. 15

Design flaw

_____________ 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.

Detection difficulty

Adopting proven technology instead of experimental technology is an example of mitigating a risk.

False

Enhancing a risk is a tactic that seeks to eliminate the uncertainty associated with an opportunity to ensure that it definitely happens.

False

Opportunities identified within a project are treated very different from risks.

False

The risk identification process should be limited to just the core project team.

False

Which of the following is NOT one of the steps in the risk management process?

Risk tracking

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.

contingency

Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.

mitigating

When considering risk response development, reducing the likelihood that an event will occur and/or reducing the impact that an adverse event would have on a project is known as _________ the risk.

mitigating

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a

risk.

A Risk Response Matrix contains all of the following EXCEPT

when the risk will occur.

One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.

True

The probability that a risk event will occur is higher during the initial stages of a project.

True

Which of the following activities might you consider adding a time buffer to?

You might consider adding a time buffer to any of these activities.