ch 11 qz

_____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project.

Controlling risk

_____ is the product of a risk event probability and the risk event's monetary value.

EMV

Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events.

False

Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project.

False

The lower the earned monetary value calculation for a project, the chances of project success is higher.

False

Unknown risks can be managed proactively.

False

_____ involves determining which risks are likely to affect a project and documenting the characteristics of each.

Identifying risks

The term _____ is used to describe risks that the project team has identified and analyzed.

Known risks

_____ involves numerically estimating the effects of risks on project objectives.

Performing quantitative risk analysis

_____ involves eliminating a specific threat, usually by eliminating its causes.

Risk avoidance

_____ involves doing whatever you can to make sure the positive risk happens.

Risk exploitation

Explain the basic steps involved in performing a Monte Carlo analysis.

Step 1: Assess variables and their range Step 2: Determine probability distribution of the variables Step 3: Select random value for each variable based on distribution of probability Step 4: Run a pass through the model Step 5: Repeat steps 3 and 4.

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place.

Workarounds

Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management.

planning

A _____ person achieves a balance between risk and payoff.

risk-neutral