Chapter 11 Project Management

The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.

probability/impact matrix

Identified risks may not materialize, or their probabilities of occurrence or loss may diminish. T/F

true

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

workarounds

A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.

activity on arrow

What is the first step in a Monte Carlo analysis?

asses the range for the variables being cosidered

_____ are predefined actions that the project team will take if an identified risk event occurs.

contingency plans

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

identifying risks

A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other

influence diagram

__ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions

interviewing

_____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.

monte carlo

_____ involves prioritizing risks based on their probability and impact of occurrence.

performing qualitative risk analysis

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

performing quantitative risk analysis

Identifying risks is a subprocess of the _____ process of project risk management.

planning

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

planning

_____ involves deciding how to approach and plan the risk management activities for the project.

planning risk management

_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.

risk acceptance

The risk register can be created with a simple Microsoft Word or Excel file. True

risk averse

_____ 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

_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.

risk mitigation

A _____ person achieves a balance between risk and payoff.

risk neutral

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.

risk seeking

_____ involves allocating ownership of the risk to another party.

risk sharing

_____ involves shifting the consequence of a risk and responsibility for its management to a third party.

risk transference

_____ risks refer to those that are direct results of implementing risk responses.

secondary

A _____ is a technique used to show the effects of changing one or more variables on an outcome.

sensitivity analysis

A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of a matrix or axis on a chart and the relative impact of the risk occurring on the other. TF

true

A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks. T/F

true

Contingency plans are predefined actions that the project team will take if an identified risk event occurs. TF

true

Quantitative risk analysis need not be done for projects that are large and complex. T/F

true

Risks can have both negative and positive effects on meeting project objectives. t/f

true

The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input regarding future events. T/F

true

The risk register can be created with a simple Microsoft Word or Excel file. T/F

true

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area.

procurement

_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.

risk enhancement

_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks.

top ten risk item tracking

The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will be equal to or less than a certain value. T/F

true

_____ 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

_____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.

planning risk responses

The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and monitoring a top-ten master list of risks. TF

true