11.0 Risk Mgmt Q& A (SG)

1. Which of the following processes is NOT part of Project Risk Management? A. Perform Qualitative Risk Analysis B. Identify Risks C. Administer Risks D. Plan Risk Responses

1 C [PMBOK, 5th Edition, 2013], Chapter 11, p. 309

10. Which of the following statements is false? A. Project risk is an uncertain event or condition with positive or negative effects on at least one project objective B. Qualitative risk analysis numerically analyzes the effect on overall project objectives of identified risks. C. During risk response planning options and actions to enhance opportunities are developed. D. Project risk management includes the processes concerned with conducting risk management planning.

10 B [PMBOK, 5th Edition, 2013], Chapter 11, p. 309

11. A contingency plan is executed when: A. A risk is identified. B. An identified risk event occurs. C. When a workaround is needed. D. All of the above

11 B [PMBOK, 5th Edition, 2013], Section 11.5.2.4, p. 343

12. The impact scale: A. Is specific to the objective potentially impacted B. Quantify possible outcomes for the project C. Is useful only for negative impacts. D. All of the above

12 A [PMBOK, 5th Edition, 2013], Section 11.1.3.1, p. 316

13. Which of the following are Outputs for Qualitative Risk Analysis? A. Project document updates B. Risk Register C. Risk Management Plan D. Risk Log

13 A [PMBOK, 5th Edition, 2013], Section 11.3.3.1, p. 333

14. What is the Delphi technique as it relates to the risk identification process? A. An information-gathering technique where experts perform a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis. B. An information-gathering technique where experts are briefed about the project and then interviewed for their opinions. C. An information-gathering technique where experts meet and generate ideas about project risk. D. An information-gathering technique where experts participate anonymously and ideas about project risk are gathered via a circulated questionnaire.

14 D [PMBOK, 5th Edition, 2013], Section 11.2.2.2, p. 324

15. Which of the following are considered tools and techniques for qualitative risk analysis? A. Risk probability and impact assessment, probability and impact matrix, and risk categorization B. Interviewing, sensitivity analysis, decision tree analysis, and simulation C. Avoidance, transference, mitigation, and acceptance D. Checklists, sensitivity analysis, and simulation

15 A [PMBOK, 5th Edition, 2013], Section 11.3.2, pp. 330-333

16. A contingency plan has a 20% chance of failing. The corresponding risk event has a 30% chance of occurring. What's the probability for the risk to occur AND the contingency plan to fail? A. 50% B. 25% C. 6% D. 10%

16 C This Study Guide, Section Project Risk Management Concepts 0.2 * 0.3 = 0.06

17. "Sensitivity Analysis" can be used in quantitative risk analysis to: A. Substitute for uncertainty analysis in risk qualification B. Estimate the level of management's risk aversion C. Estimate the effect of change one project variable would have on the overall project D. Validate statistical probability analysis

17 C [PMBOK, 5th Edition, 2013], Section 11.4.2.2, p. 336

18. Which of the following documents is primarily used as an input into the Risk Identification Process? A. Risk Management Plan B. Stakeholder Register C. Scope Baseline D. Contingency Plan

18 A [PMBOK, 5th Edition, 2013], Section 11.2.1, p. 321

19. Risks are accepted when: A. The project team decides to transfer the risk to a third party. B. The project team decides not to change the project plan to deal with a risk or is unable to identify any other suitable response strategy. C. The project team reduces the probability and consequences of an adverse risk event to an acceptable threshold. D. Risks are never accepted.

19 B [PMBOK, 5th Edition, 2013], Section 11.5.2.3, p. 346 Option A is transference; Option C is mitigation.

2. Using the PMBOK© Guide definition of contingency reserve, which of the following statements about contingency reserves is false? A. A Contingency reserve is a separately planned quantity of money or time that has been set aside to allow for future situations which may be planned for only in part. B. Contingency reserves are used to reduce the risks of overruns of project objectives to a level acceptable to the organization. C. Contingency reserves may be set aside for known risks. D. Contingency reserves can be included in the project's cost and schedule estimates without any identifying documentation.

2 D [PMBOK, 5th Edition, 2013], Glossary, p. 533 and Section 11, p. 332, pp. 342-346, p. 352

20. What is the key benefit of the controlling risk process? A. Improves efficiency of the risk approach throughout the project life cycle to continuously optimize risk responses. B. It produces quantitative risk information to support decision making in order to reduce project uncertainty. C. It enables project managers to reduce the level of uncertainty and to focus on high-priority risks. D. The documentation of existing risks and the knowledge and ability it provides to the project team to anticipate events.

20 A [PMBOK, 5th Edition, 2013],Chapter 11, p.349

21. By using Project Risk Management techniques, project managers can develop strategies that do all but which of the following: A. Significantly reduce project risks B. Eliminate all project risks C. Provide a basis for better decision making on overruns D. Identify risk, their impact(s) and any appropriate responses

21 B [PMBOK, 5th Edition, 2013], Chapter 11 Risks can never be completely eliminated on a project.

22. in the following network, all three tasks, A, B and C, each has a duration of 5 days. The value 'p' indicates the probability of each task finishing on schedule. If all 3 tasks start on day 1, what is the probability that all 3 tasks will finish in 5 days? A. p = 0.45 B. p = 0.003 C. p = 0.014 D. Probability cannot be determined from the data given

22 B 0.1 * 0.2 * 0.15 = 0.003

23. A risk event is defined as: A. The severity of the consequences of a loss B. How likely the event is to occur C. An uncertain event or condition that may affect the project for better or worse D. A symptom of a risk

23 C [PMBOK, 5th Edition, 2013], Chapter 11

24. An analysis has identified four different options for reducing project costs. Given the following decision tree, which option should be selected? A. Option A B. Option B C. Option C D. Option D

24 D A: Option A: Expected value of Opportunity = (0.4)*(0.7)*($100) = $ 28 C: Option B: Expected value of Opportunity = (0.4)*(0.1)*($1000) = $ 40 B: Option C: Expected value of Opportunity = (0.4)*(0.2)*($5000) = $ 400 D: Option D: Expected value of Opportunity = (0.6)*($2000) = $ 1,200 Refer [PMBOK, 4th Edition, 2008], Figure 11-16, p. 339

25. Risk avoidance involves: A. Accepting the consequences B. Developing a contingency plan C. Eliminating a specific threat, usually by eliminating the cause D. Reducing the effect of the risk event by reducing the probability of the occurrence

25 C [PMBOK, 5th Edition, 2013], Section 11.5.2.1, pp. 344-345

26. Examples of probability distributions used in quantitative risk analysis are: A. Six-sigma distributions B. Probability-impact matrix distributions C. Delphi distributions D. Beta and triangular distributions

26 D [PMBOK, 5th Edition, 2013], Section 11.4.2, p. 337 and Figure 11-14

27. When developing a risk response plan, which risks should you focus on first? A. Near term risks with a high probability of occurrence B. Low impact risks with a low probability of occurrence C. Risks with a low risk score D. Doesn't matter which risk you pick

27 A [PMBOK, 5th Edition, 2013], Section 11.5., pp. 342-348

28. An event or situation that indicates that a risk is about to occur is called: A. Risk reassessment B. Trigger conditions C. Risk urgency assessment D. Stop gaps

28 B [PMBOK, 5th Edition, 2013], Glossary, p. 566

29. The risk register includes: A. List of identified risks B. Root causes of risk C. Risks grouped by categories D. A, B and C

29 D [PMBOK, 5th Edition, 2013], Section 11.2.3, p. 327

3. Which of the following is NOT a tool or technique used during the Quantitative Risk Analysis process? A. Earned value analysis B. Sensitivity analysis C. Interviewing D. Modeling techniques

3 A [PMBOK, 5th Edition, 2013], Section 11.4.2 pp. 336-341 Earned value analysis is used as part of Risk Control

30. A project of $1.5 million has an adverse event that has a probability of 0.07 of occurring and a potential loss of $15,000. This represents an expected negative monetary value of how much? A. $100,500 B. $105 C. $1,050 D. $15,000

30 C $15,000 * 0.07 = $ 1,050

4. An output of the Quantitative Risk Analysis process is: A. Risk Register Updates B. Project Document C. Project document Updates D. Risk Management Plan

4 C [PMBOK, 5th Edition, 2013], Chapter 11, p. 341

5. A contingency response strategy is: A. A planned response that defines the steps to be taken if an identified risk event should occur. B. A workaround C. A comprehensive listing of many possible risks that might occur on a project. D. Not appropriate at any time

5 A [PMBOK, 5th Edition, 2013], Section 11.5.2.3, p. 346 A workaround is an unplanned response to a negative risk event. Option C is the definition of a checklist.

7. A risk response which involves eliminating a threat is called: A. Mitigate B. Exploit C. Avoid D. Transfer

7 C [PMBOK, 5th Edition, 2013], Section 11.5.2.1, pp. 344-345

6. Which of the following is NOT an output of Plan Risk Responses? A. Risk register (Updates) B. Risk-related contractual agreements C. Project management plan (Updates) D. Risk management plan

6 D [PMBOK, 5th Edition, 2013], Section 11.5.3, pp. 346-348

8. Deflection or shifting of a risk to another party is part of which of the following risk response categories? A. Mitigate B. Accept C. Avoid D. Transfer

8 D [PMBOK, 5th Edition, 2013], Section 11.5.2.2, pp. 345-346

9. When should risk identification be performed? (Select BEST answer) A. During Concept Phase B. During Development Phase C. During Implementation Phase D. Risk identification should be performed on a regular basis throughout the project.

9 D [PMBOK, 5th Edition, 2013], Section 11.2, p. 319