Managing Risk

All of the following are included in the risk identification process except A) Customers B) Subcontractors C) Competitors D) Vendors E) None of these are included

C) Competitors

The initial step in the risk management process is to A) Determine the level of acceptable risk B) Assess the risk potential C) Identify the risk D) Set aside budget funds for managing the risks E) Appoint a risk manager

C) Identify the risk

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed A) Random chance B) A disaster C) Risk D) Hazard E) Bad Luck

C) Risk

The risk assessment form contains all of the following except A) Likelihood of the risk event occurring B) Potential impact of the risk event C) Who will detect the occurrence of the risk event D) Difficulty of detecting the occurrence of the risk event E) When the risk event may occur

C) Who will detect the occurrence of the risk event

One common mistake made early in the risk identification process is to A) Not all possibilities are considered B) Participants are over-optimistic C) Participants are over-pessimistic D) Focus on objectives and not on the events that could produce consequences E) Too much attention is given to past events

D) Focus on objectives and not on the events that could produce consequences

The 1999 NASA Mars Climate Orbiter is an example of A) Disaster avoidance through proactive risk management B) Murphy's Law C) Proper use of critical thinking D) Mismanaged risk control E) Using historical records to assess risk

D) Mismanaged risk control

A risk profile is a list of questions that address traditional areas of uncertainty on a project. The answers are typically based on: A) when the event might occur in the project. B) chances of the event occurring. C) interaction with other parts of the project or with other projects. D) previous, similar projects. E) magnitude or severity of the event's impact.

D) previous, similar projects.

Which of the following is not one of the steps in the risk management process? A) Risk response development B) risk assessment C) risk identification D) risk tracking E) risk response control

D) risk tracking

Which of the following is typically included in risk profiles? A) Management aspects B) Customer aspects C) Technical aspects D) Both A and C are included E) A, B, and C are all included

E) A, B, and C are all included

The two scales of a risk severity matrix measure A) Time, cost B) cost, schedule C) Impact, cost D) Time, impact E) Likelihood, impact

E) Likelihood, impact

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk A) Assessment form B) Responsibility matrix C) Scenario assessment D) Impact assessment E) Risk severity matrix

E) Risk severity matrix

The chances of a risk event occurring as a project proceeds through its life cycle tends to A) Slowly rise B) Drop sharply and then level out C) Rise sharply and then level out D) Remain about the same E) Slowly drop

E) Slowly drop

If a risk event has a 90 percent chance of occurring, and the consequences will be US $ 10,000, what does US $ 9,000 represent? Risk Value Present Value Expected Monetary Value Contingency Budget

Expected Monetary Value

Which of the following would not be considered a threat? A) Inflation B) Meeting the project schedule C) international disruptions D) Economic conditions E) Competition

B) Meeting the project schedule

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as A) Risk forecasting B) Risk management C) Contingency planning D) scenario analysis E) disaster protection

B) Risk management

The easiest and most commonly used technique for analyzing risks is _____ analysis. A) Probability B) scenario C) payback D) risk/reward E) Impact

B) scenario

In the beginning the focus of risk management should be on risks that A) Impact the whole project B) Impact the critical path C) Are known D) Have the greatest cost impact E) Have the greatest schedule impact

A) Impact the whole project

A list of questions that address traditional areas of uncertainty on a project is termed a risk A) Risk profile B) Questionnaire C) Research D) Query E) Checklist

A) Risk profile

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to A) Slowly rise B) Drop sharply and then level out C) Rise sharply and then drop D) Remain about the same E) Slowly drop

A) Slowly rise