ch7

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

Likelihood, impact

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

Risk management

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

Risk profile

Change management systems are designed to accomplish all of the following except: A. Track all changes that are to be implemented B. Review, evaluates, and approve/disapprove proposed changes formally C. Identify expected effects of proposed changes on schedule and budget D. Reflect scope changes in baseline and performance measures E. All of the above are correct

All of the above are correct

22. Which of the following is not included in a Failure Mode and Effects Analysis? A. Impact B. Probability C. Detection D. Risk value E. All of these are included

All of these are included

25. A Risk Response Matrix contains all of the following except A. Contingency plan B. Trigger C. Who is responsible? D. Response E. All of these are included in the matrix

All of these are included in the matrix

Technical risks are: A. Can often be the kind that cause the project to be shut down. B. Problematic C. Imposed duration dates D. Both A and B are correct E. A, B, and C are all correct

Both A and B are correct

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

Both A and C are included

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves. A. Management B. Budget C. Contingency D. Padded E. Just in case

Budget

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

Competitors

14. One of the keys to success in risk identification is A. Critical thinking B. Optimism C. Pessimism D. A "can do" attitude E. All of these are correct

Critical thinking

This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks. A. PERT simulation B. FMEA analysis C. Ratio/range analysis D. Probability analysis E. Semi-quantitative analysis

FMEA analysis

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

Focus on objectives and not on the events that could produce consequences.

A risk profile is a list of questions that address traditional areas of uncertainty on a project that answers developed from: 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. From previous, similar projects E. Magnitude or severity of the event's impact

From previous, similar projects

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 risks D. Set aside budget funds for managing the risks E. Appoint a risk manager

Identify the risks

24. Which of the following is not one of the potential responses to a specific risk event? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

Ignoring

8. 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

Impact the whole project

Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? A. Budget reserves B. Management reserves C. Time buffers D. Both B and C are correct E. A, B, and C are all correct

Management reserves

10. 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

Meeting the project schedule

9. 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

Mismanaged risk control

The demolition of the Seattle Kingdome (Snapshot from Practice) is an example of which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

Mitigating

23. Which of the following is used to review activity and project risk? A. NPV B. S-curves C. PERT D. Decision trees E. All of these can be used

PERT

Which of the following is not one of the probability analysis tools? A. Ratio/range analysis B. Decision tree C. PERT simulation D. PERT E. All of these are probability analysis tools

Ratio/range analysis

The risk associated with one of the key members being stuck by lightning would most likely be handled by which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Sharing

Retaining

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

Risk

30. Detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners and current status is called: A. Management reserves B. Change control C. Contingency reserves D. Risk register E. Risk profiles

Risk register

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

Risk severity matrix

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

Risk tracking

The easiest and most commonly used technique for analyzing risks is _____ analysis. A. Probability B. Scenario C. Payback D. Risk/reward E. Impact

Scenario

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 E. Slowly drop

Slowly drop

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 level out D. Remain about the same E. Slowly drop

Slowly rise

18. 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

Who will detect the occurrence of the risk event.