ITS 381 PM - Ch.6

You have been assigned as the Project Manager for a new project that involves manufacturing of discrete automation parts. You figure out that the project has 50% probability of $150,000 profit, 30% probability of $200,000 loss, and 20% probability of break even. What is the expected monetary value of this project?

$15,000

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?

Ambiguity risk is addressed using data analysis.

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?

Continuous probability distributions are graphically displayed and depict the impact of the risk event.

Which of the following is a valid tool or technique that aids the project manager in developing the risk management plan?

Data analysis

You are the project manager for the TTR project. You are in the process of gathering information for risk identification. You ask experts to participate in the process through their emails for maintaining anonymity. You collect the responses, summarize them, and then re-circulate to the experts for further comment. Which of the following techniques are you using for risk identification?

Delphi

Your project spans the entire organization. You would like to assess the risk of the project, but you are worried that some managers involved in the project could affect the outcome of any risk identification meeting and also some employees would not want to publicly identify risk events that could make their supervisors look bad. You would like to implement a method that will allow participants to anonymously identify risk events. Which risk identification method could you use?

Delphi technique

Which of the following is not an input of the Perform Qualitative Risk Analysis process?

Expert judgment

Your project is an agricultural-based project that deals with plant irrigation systems. You have discovered a by-product of your project that your organization could use to make a profit. If your organization seizes this opportunity, it would be an example of what risk response?

Exploiting

A project manager, Gary, is working with project stakeholders on its requirements and examining how risks might affect their project. One of the stakeholders is confused about what constitutes project risk. Which of the following is the most accurate definition of project risk?

It's an uncertain event that can affect at least one project objective.

Drag the element of the risk management plan to its description.

Methodology: A description of how risk management is performed and where the risk data can be found Tracking: Includes a description of how one can document the history of the risk activities for the current project and how the risk processes will be audited Reporting format: Describes the content of the risk register and the layout of the document Timing: Documents when and how often the risk management processes will be performed on the project Funding: Assigns resources and estimates the costs of risk management and its methods, including contingency reserves

New risks are determined primarily through which of the following processes? Each correct answer represents a complete solution. Choose all that apply.

Monitor Risks Identify Risks

A risk manager looking to simulate the possible impacts to the project schedule of the combined effects of individual project risks is likely to use which type of data analysis technique?

Monte Carlo analysis

Your stakeholders have asked for an analysis of the cost risk. All of the following are true except for which one?

Monte Carlo analysis is a simulation technique that computes project costs one time.

All of the following are true regarding the Perform Qualitative Risk Analysis process except which one?

Perform Qualitative Risk Analysis is an easy method of determining risk probability and impact and usually takes a good deal of time to perform.

A risk manager has developed a plan for identifying and managing risks, facilitating multiple workshops to identify risks, and assessing the likelihood and impact of risks occurring. What is the risk manager likely to do next?

Perform Quantitative Risk Analysis

Monte Carlo analysis can help predict the impact of risks on project deliverables. This is an element of one of the tools and techniques of which of the following processes?

Perform Quantitative Risk Analysis

Which of the following processes assesses the likelihood of risk occurrences and their consequences using a numerical rating?

Perform Quantitative Risk Analysis

Which of the following processes is described in the statement given below?"This is the process of numerically analyzing the effects of identified risks on the overall project objectives."

Perform quantitative risk analysis

You are the project manager of the project for a client. The client has promised your company a bonus if the project is completed early. After studying the project work, you elect to crash the project in order to realize the early end date. This is an example of what type of risk response?

Positive risk response, as crashing is an example of enhancing

Which of the following terms best describes the statement given below?"It is a hierarchically organized depiction of the identified project risks arranged by risk category."

Risk breakdown structure (RBS)

Nicolas is in the process of overseeing the implementation of risk responses for risks that are being mitigated. As part of his approach, he refers the document that outlines the roles and responsibilities of team members for administering risks. What document did Nicolas refer to get this information?

Risk management plan

You are the project manager for your organization and you're working with your project team and stakeholders to develop the risk management plan. According to the PMBOK Guide, what is the only output of the project's risk management planning process?

Risk management plan

Diane is the project manager of the HGF project. A risk that has been identified and analyzed in the project planning processes is now coming to fruition. Which individual should respond to the risk with the preplanned risk response?

Risk owner

Adrian is a project manager for a new project using a technology that has recently been released and there's relatively little information about the technology. Initial testing of the technology makes the use of it look promising, but there's still uncertainty as to the longevity and reliability of the technology. Adrian wants to consider these technology factors as risks for the project. Where should she document the risks associated with this technology so that she can track the risk status and responses?

Risk register

Where are all risks and risk responses documented as the project progresses?

Risk register

Which of the following project management documents contains the risk responses implemented as part of execution activities?

Risk register

According to the PMBOK® Guide, which output of the Identify Risks process is used when implementing risk responses, as it contains the overall project risk exposure, as well as the agreed-upon risk response strategy?

Risk report

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?

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?

The risk management plan includes a description of the responses to risks and triggers.

You and your project team have identified a few risk events in the project and recorded the events in the risk register. Part of the recording of the events includes the identification of a risk owner. Who is a risk owner?

A risk owner is a party authorized to respond to the risk event.

There are seven risk responses that a project team can elect to use for identified risk events. Which one of the following is appropriate for positive and negative risk events?

Acceptance

You work as a project manager in an organization and identify some risks in your project while working. One of the risk events you've identified is classified as force majeure. Which risk response is likely to be used?

Acceptance

A project team member has just identified a new project risk. The risk event is determined to have a significant impact but a low probability in the project. If the risk event happens, it will cause the project to be delayed by three weeks, which will cause new risk in the project. What should the project manager do with the risk event?

Add the identified risk to the risk register.

Which of the following statements best describes an individual project risk?

An uncertain event or condition that has a positive or negative effect on one or more project objectives

Drag the strategy for threat to its description.

Avoid: Changes the project management plan to protect the project objectives from the risk event Transfer: Shifts the impact of a threat to a third party, together with the ownership of the response Mitigate: Reduces the probability of a risk event occurring or its impacts to an acceptable level Accept: Used for risks that pose either threats or opportunities to the project Escalate: Used when the project team or the project sponsor agrees that a threat is outside the project scope

Indicate if each of the given statements about the data gathering techniques is true or false.

Brainstorming involves getting SMEs, team members, and risk management team members to identify possible risk events. TRUE The Delphi technique helps team members to influence each other in the project group. FALSE Interview involves question-and-answer sessions held with candidates for the post of project managers, SMEs, stakeholders, and so on. TRUE Checklist used during the Identify Risks process is developed based on current information and ongoing project team experience. FALSE

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?

Bubble chart

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?

Forecasted results of the project schedule and costs

Your project team has completed the Perform Quantitative Risk Analysis process for your project work. Based on their findings, they need to update the risk register with several pieces of information. Which one of the following components is likely to be updated in the risk register based on their analysis?

Listing of prioritized risks

Your team is developing the risk management plan output of the Plan Risk Management process. Which tool and technique of this process is used to develop risk cost elements and schedule activities that will be included in the project budget and schedule?

Meetings

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?

Mitigate

You are the project manager for BBT project. You are in a process of risk identification. You called your concerned team members in the meeting room and asked each of them to write down the risks, they think, the project faces. They are instructed to use Sticky-backed notes using one paper for each risk. You stick all such paper received up to a whiteboard. You ask the team members to review all the risks posted on the board, rank them, and prioritize them. Which of the following techniques have you used to identify risks in the project?

Nominal Group

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?

Perform Qualitative Risk Analysis

You are project manager for the ABZ project. You're using a tool or technique named Risk Categorizations. In which of the following process are you working on?

Perform Qualitative Risk Analysis

Drag the output of the Perform Quantitative Risk Analysis to its description.

Probabilistic analysis of the project: Represents the forecasted results of the project schedule and costs as determined by the outcomes of risk analysis Assessment of overall project risk exposure: Allows manager to create a probability of the project completing its goals along with a range of potential outcomes Prioritized list of risks: Includes records that present the greatest threat to the project and their impacts Trends in quantitative risk analysis results: Gives manager the opportunity to perform significant analysis or go on to develop risk response plans

Walter is the project manager of a large construction project. He will be working with several vendors on the project and they will be providing materials and labor for various parts of the project. Some of the works in the project are very dangerous, so Walter has implemented safety requirements for all of the vendors and his own project team. Stakeholders for the project have added new requirements, which have caused new risks in the project. A vendor has identified a new risk that could affect the project if it comes to fruition. Walter agrees with the vendor and has updated the risk register and created potential risk responses to mitigate the risk. What should Walter also update in this scenario considering the risk event?

Project management plan

Which of the following statements are true about risk events? Each correct answer represents a complete solution. Choose all that apply.

Project risks are uncertain events. If risks occur, they can have a positive or negative effect on project objectives. Risks that have more perceived rewards to the organization than consequences should be accepted.

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?

Prompt list

Drag the risk category to its description.

Quality risk: Involves risks associated with unproven technology, complex technology, or changes to technology anticipated during the course of the project Project management risk: Involves improper schedule and resource planning, poor project planning, and improper or poor project management disciplines or methodologies Organizational risk: Involves resource conflicts, scope, time, and cost objectives that are unrealistic, and lack of funding for the project External risk: Involves aspects exterior to the project, such as new laws or regulations, labor issues, weather, changes in ownership, and foreign policy for projects performed in other countries

You have been assigned as the project manager for a new project that involves the building of a new roadway between the city airport to a designated point within the city. You have worked with your team and the stakeholders to identify and prioritize the risks. However, there are three risks of the same priority. Which of the following will help you to make a decision as to which risk you should be addressing first?

Quantitative analysis

Which of the following tools and techniques is not a part of the Perform Qualitative Risk Analysis process?

Representations of uncertainty

Question 14 :You are the project manager of the HJN Project and you've hired a licensed electrician to complete a portion of the project, owing to the danger posed by electricity. You realize that the electrician now owns the risk, but this response creates a new risk-that the electrician might not be able to finish the work even though he promises to do so, by the given deadline. What can be this new risk called? Each correct answer represents a complete solution. Choose all that apply.

Residual risk secondary risk

You have been assigned as the project manager for a new project that involves deployment of a new software application to all the organization's users. Your project team consists of nine members to date. Recently, you've started observing slippage on your project schedule due to resource constraints and you think there is a possibility of not meeting the project timeline. Which of the following will help you take the necessary steps to address this scenario?

Risk Management Plan

Drag the risk attitude element from the bottom onto its description. Each element may be associated with more than one description.

Risk appetite: The level of uncertainty the stakeholders are willing to accept in exchange for the potential positive impacts of the risk Concerns with the amount of uncertainty Risk threshold: The level of uncertainty the organization is willing to operate within Concerns with the amount of risk

Sasha, the project manager of a computer networking project, is monitoring the project performance. She takes a decision to change the project plan to eliminate a risk in order to protect the project objectives. Which of the following strategies is she using for tackling the risk?

Risk avoidance

Bonnie is the project manager for her organization and she's working with the project team to develop the project's risk management plan. Gary, the project sponsor, has asked Bonnie to create a visual disintegration of all the risks in the project to mesh with the project's WBS. This will help the stakeholders, including the project team, visualize the risk and see the distribution of risks within the project. What type of chart is Gary asking Bonnie to create?

Risk breakdown structure

You, as the project manager, and the project team have identified several new risk events and have updated the risk register. The project sponsor asks you to create a visual disintegration for various risks of the project. What does the project sponsor want you to create?

Risk breakdown structure

Risk attitude is an enterprise environmental factor that you should evaluate when performing the Plan Risk Management process. Risk attitude consists of which of the following components?

Risk threshold and risk appetite

You have been assigned as the project manager for a new project that involves manufacturing of discrete automation parts. An order has been placed to procure the drilling machine required for manufacturing. However, you came to know that it is a hurricane season at the vendor's location and there is a risk of losing the equipment due to the hurricane during transit. To cover this risk, you purchase travel insurance for the equipment. Which of the following best describes your approach in managing this risk?

Risk transfer

All of the following statements are true regarding risks except for which one?

Risks are certain events that have the probability of sure occurrence.

You are the project manager of the GHY Project and would like to perform a review of your project from several different characteristics. You would like to review what worked in the project and what needed improvement. What type of analysis would be most appropriate for the end of project review?

SWOT analysis

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?

Schedule

You are the project manager for your company. Your current project is to create a Web presence for a large marketing firm in your city. It has come to your attention that the customer is asking your project team through emails to add "extra bells and whistles" to the project that were not in the approved project scope. Your project team has been adding the additional features although they have not been documenting the features as the customer has been sending the requests through email messages. What is happening in this scenario?

Scope creep

All of the following statements are true regarding the RBS except for which one?

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?

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.

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?

This is a response strategy for either positive or negative risks known as passive acceptance.

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?

This is a risk event that should be shared to take full advantage of the potential savings.

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?

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?

This risk event is an opportunity to the project and should be exploited.

In the series of project management processes, especially in the risk management knowledge area, when should risk response planning happen? Each correct answer represents a complete solution. Choose all that apply.

Throughout the project After qualitative and quantitative planning

When does the Identify Risks process take place in a project?

Throughout the project life cycle

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?

Tornado diagram

During a risk management meeting, Bob walked the project team through new risks added to the risk register. He highlights the risk of flooding at a new call center site on which their project is dependent because of unexpected inclement weather. The team unanimously agrees that additional insurance should be purchased on the gear that would be installed at this location. What type of risk response strategy has the team used?

Transfer

You are the project manager for a construction project. The project includes a work that involves very high financial risks. You decide to ensure processes so that any ill happening can be compensated. Which type of strategies have you used to deal with the risks involved with that particular work?

Transfer

Which negative risk response usually has a contractual agreement?

Transference

You are the project manager of the BHQ Project for the organization and you're working with the project team to create risk responses for several risks in the project. You've identified a risk that involves working with electricity. While some of the project team members have electrical experience, you and the team agree this is too dangerous for the team members to complete. You decide to hire a licensed and insured electrician. What type of risk response is this?

Transference

You are the project manager of the NHW Project for your company. You have contracted a licensed electrician to manage the electrical work of the project because of the dangers involved. What type of risk response is this?

Transference

Which of the following terms is used to represent risk symptoms or warning signs?

Triggers

Hal is the project manager of the IT project for his company. Hal's project team has identified a risk of cultural achievability by the end users of the project. There's a fear that the users won't like the product that's being delivered. Hal notes that there has already been training, extensive communication, and lots of communication from senior management about the transition the IT project will bring. Hal says that the users who don't like the product will just have to learn to like the project. Are these risk responses?

Yes, this is acceptance of the identified risk Yes, there's already been mitigation for the problem.

You are the project manager of the GHT Project. You have identified a project risk and through quantitative analysis, you have determined the probability of the risk is 60 percent and the cost impact of the risk is $137,000. Your project team has discovered a workaround for the risk event that will cost the project $91,000 to implement. What should you do and why?

You should not implement the workaround as the risk event value is lower than the cost of the workaround.

Your team is developing the risk management plan. Which tool and technique of this process is used to develop risk cost elements and schedule activities that will be included in the project budget and schedule?

meetings

Click to select the inputs of the Perform Qualitative Risk Analysis process.

project management plan project documents enterprise environmental factors organizational process assets