PM chp 8
______ is a defined set of actions to prevent or reduce the likelihood of occurrence or the impact of a risk, or to implement if the risk event occurs.
d. A risk response plan
__________ can be to avoid the risk, mitigate the risk, or accept the risk.
d. A risk response plan
________ involves determining the likelihood that the risk event will occur and the degree of impact the event will have on the project objective.
d. Assessing each risk
_______ are a good forum for regularly reviewing, updating, and addressing risks.
d. Project meetings
Managing risk includes taking action to foster the likelihood of occurrence or the impact of such unfavorable events.
False
Risk identification is determining which risks may adversely affect the development of the project work breakdown structure and what the impact of each risk might be if it occurs.
False
The risks should be those that are somewhat likely to occur and/or can have a significant positive impact on accomplishing the project objective.
False
Waiting for favorable events to occur and then reacting to them can result in panic and costly responses.
False
A risk is an uncertain event that, if it occurs, can jeopardize accomplishing the project objective.
True
Addressing risks proactively will increase the chances of accomplishing the project objective.
True
Historical information from past projects is another source that can be helpful in identifying possible risks.
True
If the risks seem too great, the contractor may decide to not bid on a proposed project.
True
Risk management involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.
True
Some level of risk planning should be done during the initiating phase of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project.
True
The project manager needs to set the tone for encouraging open and timely discussion of risks among the project team.
True
The project team can progressively elaborate and identify new risks as more information is known or becomes clear.
True
With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price.
True
_________ includes taking action to prevent or minimize the likelihood of occurrence or the impact of such unfavorable events.
a. Managing risk
_________ involves identifying, assessing, and responding to project risks in order to minimize the likelihood of occurrence and/or potential impact of adverse events on the accomplishment of the project objective.
a. Risk management
________ is a rating of low, medium, or high based on the expected level of change in completing the project's objective if the risk were to occur during the project.
a. The degree of impact
A risk assessment matrix is a tool for
a. assessing and managing risks.
Risks can be identified by using all the following except:
a. ignoring potential problems.
Some level of risk planning should be done during _______ of the project life cycle to make sure that a contractor understands the risks involved with bidding on a proposed project. With knowledge of potential risks, the contractor can include contingency or management reserve amounts in the bid price.
a. the initiating phase
Sometimes a sponsor identifies major risks for the project in
a. the project charter when the project is authorized.
_________ includes determining which risks may adversely affect the project objective and what the impact of each risk might be if it occurs.
b. Risk identification
__________ involves regularly reviewing the risk management matrix throughout the project.
b. Risk monitoring
Project prices and budgets should include________ to pay for additional costs associated with implementing response plans.
b. a contingency or management reserve
Track and document which risks _______ and the impact of those risks.
b. actually occurred
Regularly review and evaluate _____ to determine if there are any changes to the likelihood of occurrence or the potential impact of any of the risks.
b. all risks
Addressing risks ________ will increase the chances of accomplishing the project objective.
b. proactively
Risks are prioritized based on
b. the likelihood of occurrence and degree of impact.
________ is the warning flag for when to implement the action plan for the risk.
c. The action trigger
_______ is a list of the potential outcomes if the risk were to occur.
c. The impact of a risk
________ is a rating of low, medium, or high based upon the expected probability of a risk occurring during the project.
c. The likelihood of occurrence
Risks_____ should be given higher priority because if the risk occurs, it would have a greater impact on the schedule than if it was associated with activities on a path that has a large positive value of total slack.
c. on the critical path
Establishing risk categories may help to identify and evaluate risks. Some categories to help identify risks include all the following except:
c. previously identified risks.
A risk is an uncertain event that, if it occurs,
c.can jeopardize accomplishing the project objective.
_______ involves developing an action plan to reduce the likelihood of occurrence or potential impact of each risk, establishing a trigger point for when to implement the actions to address each risk, and assigning responsibility to specific individuals for implementing each response plan.
d. Risk response planning
_________ contains the steps for how to mitigate the risk if it should occur during the project.
d. The response plan
Waiting for unfavorable events to occur and then reacting to them
d. can result in panic and costly responses.
Risks may change as the project progresses and should be reflected in
d. the Risk Assessment Matrix.
If the risks seem _______, the contractor may decide to not bid on a proposed project.
d. too great
If the risks seem _______, the contractor may decide to not bid on a proposed project.
d. too great