Chapter 7
why is the second step of risk management to assess the risks identified in the first step? a. to determine what's missing b. to avert the risk c. to establish priorities for attention
c
B. Design flaw
Based on the following, which event should you be most concerned about? A. Bad weather B. Design flaw C. Accident D. Shipment delay E. Power outage
When project teams get too used to not having to go through normal approvals to get things done, this is called
Bureaucratic Bypass Syndrome
The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following?
Retaining
B. Risk management.
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.
E. Slowly drop.
The chances of a risk event occurring as a project proceeds through its life cycle tend 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.
A. Slowly rise.
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.
When a project team will only consider a couple of solutions and ignore alternatives, this is ___________ which is a symptom of Groupthink.
Whitewash of Critical Thinking
A Risk Response Matrix contains all of the following EXCEPT Contingency plan. When the risk will occur. Response. Trigger. Who is responsible.
b
C. Risk.
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a A. Random chance. B. Disaster. C. Risk. D. Hazard. E. Bad luck.
When considering the sequence and timing of activities, which of the following is NOT one of the types of project network constraints? A. Physical B. Technical C. Resource D. Time
D. Time
E. When the risk will occur. A risk response matrix will contain the risk event, the immediate response to that event, the contingency plan if that event were to occur despite our efforts to mitigate, avoid, transfer, the trigger, and who is responsible for putting that contingency plan into motion
A Risk Response Matrix contains all of the following EXCEPT A. Contingency plan. B. Trigger. C. Who is responsible. D. Response. E. When the risk will occur.
B. Transferring risk. Fixed price contracts are the classic example of transferring risk from an owner to a contractor
A fixed price contract is an example of A. Avoiding risk. B. Transferring risk. C. Accepting risk. D. Ignoring risk. E. Mitigating risk.
B. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired.
A key distinction between a risk response and a contingency plan is A. A risk response is established only for moderate risks while contingency plans are established for major risks. B. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. C. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning. D. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. E. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails.
A. Risk profile. A risk profile is a list of questions that address traditional areas of uncertainty on a project. These questions have been developed and refined from previous, similar projects.
A list of questions that address traditional areas of uncertainty on a project is termed a A. Risk profile. B. Questionnaire. C. Research matrix. D. Query. E. Checklist.
A reason that the duration on a task may differ from an original duration on a Tracking Gantt chart could be
A new budget cycle.
A _________ (responsible for the work package) involved in risk assessment and mitigation will help focus attention on all aspects of risk management. A) Project Manager B) Stakeholder C) Line Person D) All of these choices are correct
A) Project Manager
A project that has several near-critical or critical paths is said to be A)Sensitive B)Inherently risky C)Fully consumed D)Elastic
A)Sensitive
Risks that can result in a system or process that will not work are known as A)Technical risks B) Funding risks C) Schedule risks D) Cost risks E) Unnecessary risks.
A)Technical risks
The essential qualities of an effective vision include all of the following EXCEPT A. All team members have the same vision. B. The vision should be communicated to all. C. The vision has to make strategic sense. D. There should be a passion for the vision. E. The vision should be a source of inspiration to others.
A. All team members have the same vision.
All resource leveling techniques involve A. Delaying noncritical activities B. Delaying critical activities. C. Using negative slack. D. Delaying the project. E. Adding resources.
A. Delaying noncritical activities.
Which part of the final report highlights the key findings and facts relating to the project implementation? A. Executive summary B. Review and analysis C. Recommendations D. Lessons learned E. Appendix
A. Executive summary
When reaching a decision during the group decision-making process, the project manager must build a consensus among the group and can do this by all of the following EXCEPT A. If time becomes a factor, they must make an informed final decision after everyone's ideas have been heard. B. Provide periodic summaries to help the group keep track of its progress. C. Protect those members who represent the minority view. D. Guarantee that everyone has the opportunity to share opinions. E. Manage any conflict that may arise.
A. If time becomes a factor, they must make an informed final decision after everyone's ideas have been heard.
Without any formal planning, the president of a software company remarks in a speech that new technologically advanced software will be available in one year. This may lead to a project that must be done faster than anticipated. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.
A. Imposed project deadlines.
Which of the following is NOT one of the tips for alleviating communication problems of virtual teams? A. Insist team members travel at least once during the project for a face-to-face meeting B. Keep team members informed on how well the overall project is going C. Share the pain when team members reside in different time zones D. Establish clear norms and protocols for surfacing assumptions and conflicts E. Establish a code of conduct to avoid delays Although there are circumstances when traveling to get key team members together may be necessary, this is not always a reasonable option.
A. Insist team members travel at least once during the project for a face-to-face meeting
The less steep the cost slope of an activity, the A. Less it costs to shorten one time period. B. More it costs to shorten one time period. C. Smaller the crash time is. D. Larger the crash time is. E. Cannot be determined by the information given
A. Less it costs to shorten one time period.
E. Avoiding Although it is impossible to eliminate all risk events, some specific risks may be avoided before you launch the project. Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of avoiding risk.
Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Avoiding
B. Assess identified risks After risks have been identified, not all of them deserve attention. Managers have to develop methods for sifting through the list of risks, eliminating inconsequential or redundant ones and stratifying worthy ones in terms of importance and need for attention. This is risk assessment.
After your team has successfully identified potential risks that could affect the project, what is the next step? A. Create a risk breakdown structure B. Assess identified risks C. Create contingency plans D. Decide how to respond to all risks E. Mitigate risks
These are all guidelines a project manager should consider when assigning project work EXCEPT A) Select people with compatible work habits and personalities B) Always assign the best people to the most difficult tasks C) When possible, team veterans up with new hires D) Select individuals with skill sets that complement each other E) Have people work together early so that they can become familiar with each other
B) Always assign the best people to the most difficult tasks
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
B) Budget
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
Baseline project budgets are derived from: A) The organization's overall budget B) Time-phasing the work packages C) Top management directions D) Both A and C are correct E) A, B, and C are all correct
B) Time-phasing the work packages
Rachel is working on a project that technically allows three activities to be done at the same time. If they were to be implemented at the same time, she would need 5 contractors in order for the activities to be completed on time. There are only 3 available for her to use. This is an example of what type of constraint? A)Technical B)People C)Equipment D)Physical Materials
B)People
Technical constraints have been carefully considered when developing a project network. Which of the following is true at this point? A)Resources have been assigned to each activity so they are adequate to complete the project on time B)Technical dependencies between activities are known C)The project completion date can be established D)The project is ready to be implemented E)All of these are true statements once technical constraints have been established
B)Technical dependencies between activities are known
Which of the following correctly calculates an activity's cost slope? A. (normal cost-crash cost)/(normal time-crash time) B. (crash cost-normal cost)/(normal time-crash time) C. (normal time-crash time)/(crash cost-normal cost) D. (normal time-crash time)/(normal cost-crash cost) E. (crash cost-normal cost)/(crash time-normal time)
B. (crash cost-normal cost)/(normal time-crash time)
How can a project manager support and encourage functional conflict? A. Conflict should not be encouraged or supported B. By asking tough questions and by challenging the rationale behind recommendations C. By imposing a solution to the conflict after listening to each party D. By negotiating a resolution by reasoning and persuasion E. As soon as emotions flare, he or she can intervene and attempt to control conflict because it has become dysfunctional
B. By asking tough questions and by challenging the rationale behind recommendations
When project managers reduce the intensity of the conflict by smoothing over differences or interjecting humor when dysfunctional conflict arises, they are attempting to _________ the conflict. A. Eliminate B. Control C. Mediate D. Arbitrate E. Encourage
B. Control
Which of the following would be an appropriate situation to require facilitating group decision making? A. A mechanical engineer is stuck trying to meet performance criteria for a prototype B. When strong group commitment is needed to decide methods to reduce project scope C. Expectations are unclear regarding a specific task D. Materials needed to finish a custom kitchen have not been determined E. Dysfunctional conflict between two project team members needs to be resolved
B. When strong group commitment is needed to decide methods to reduce project scope
Project budgets are developed by time-phasing which of the following? A. Resource schedules B. Work packages C. The network diagram D. Critical activities E. None of these are time-phased to develop a project budget
B. Work packages
Which of the following projects would be least benefited if additional resources were added? A. Splitting and stacking a cord of wood B. Developing new software C. Harvesting a crop by hand D. Building a cabin E. Moving to a new house
B. Developing new software
Which of the following methods will measure the scheduling efficiency of the work accomplished to date? A. SV/CV B. EV/PV C. EV/AC D. AC/SV E. AC/CV
B. EV/PV
Which of the following is NOT a rational reason to reduce project duration? A. Incentive contracts B. High network sensitivity C. Imposed deadlines D. High overhead costs E. Unforeseen delays
B. High network sensitivity
Symptoms of groupthink include A. Encouraged functional conflict. B. Negative stereotypes of outsiders. C. Optimized critical thinking. D. Failed projects. E. Positive synergy.
B. Negative stereotypes of outsiders.
When the project may be completed early with some parts of the project eliminated this is considered to be ___________ closure. A. Normal B. Premature C. Perpetual D. Changed priority E. Failed project
B. Premature
Cost slope can be determined by dividing the A. Run by the rise. B. Rise by the run. C. Crash cost by the normal cost. D. Normal cost by the crash cost. E. Indirect cost by direct cost.
B. Rise by the run.
During which stage of team development do members accept that they are part of a project group but resist the constraints that the project and the group put on their individuality? A. Norming B. Storming C. Performing D. Adjourning E. Forming
B. Storming
Roger is new-product project manager for a retail company. Recently the team has exhibited a high degree of conflict over who will control the group and how decisions will be made. Which stage of development is the team in? A. Norming B. Storming C. Performing D. Adjourning E. Forming
B. Storming
Which of the following summarizes project performance and provides useful information for continuous improvement? A. Customer acceptance B. The final report C. Team evaluation D. 360-degree feedback E. Project summary
B. The final report
The following are general tips for conducting performance reviews EXCEPT A. Begin the process by asking the individual to evaluate his or her own contributions to the project. B. Use other team members' performance as a method to compare and evaluate. C. When you have to be critical, focus the criticism on specific examples of behavior and not on the individual personally. D. Be fair and consistent in your treatment of all team members. E. Treat the review as only one point in an ongoing process.
B. Use other team members' performance as a method to compare and evaluate.
The project manager must quickly establish operational ground rules for how the team will work together. These include planning, tracking, managing change, and relationship decisions. Which of the following is an example of a planning decision? A. What departments will the team need to interact with during the project? B. What are the specific roles and responsibilities of all the participants? C. Who will generate and distribute reports? D. How will changes be documented and evaluated? E. How will progress be assessed?
B. What are the specific roles and responsibilities of all the participants?
Based on the following, which event should you be most concerned about? A.Bad weather B.Design flaw C.Accident D.Shipment delay E.Power outage
B.Design flaw
This response is used to increase the potential effect of an identified Opportunity A) Exploit B) Share C) Enhance D) Accept
C) Enhance
A special truck that George needs on his project has been scheduled on another project. This is a ______ constraint. A) Working capital B) People C) Equipment D) Information E) Materials
C) Equipment
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a A) Random chance B) Disaster C) Risk D) Hazard E) Bad luck
C) Risk
Jan is trying to reallocate resources in a time-constrained project to create smoother resource utilization. She should first identify activities with the A)Smallest duration B)Least slack C)Most slack D)Lowest identification number E)Highest cost.
C)Most slack
A project monitoring system involves all of the following EXCEPT A. Determining what data to collect. B. Determining how, when, and who will collect the data. C. Adjusting the data. D. Analysis of the data. E. Reporting current progress.
C. Adjusting the data.
The direct cost for completing an activity in the shortest time it can realistically be completed in is called its __________ cost. A. Normal B. Reserve C. Crash D. Accelerated E. Expedited
C. Crash
The shortest possible time an activity can be completed realistically is called ________ time. A. Expedited B. Accelerated C. Crash D. Optimistic E. Optimal
C. Crash
In selecting the best activity to reduce you would first select the activity with the A. Earliest start time B. Steepest slope C. Least steep slope D. Longest duration E. Largest crash time
C. Least steep slope
An analysis carried out during and shortly after the project life cycle that attempts to capture positive and negative learning is represented in which of the following? A. Scenario analysis B. Variance analyses C. Lessons learned D. Performance evaluation E. Strategic objectives
C. Lessons learned
Sam, the project engineer, has been scheduled to run the product system test at the same time he is to build a marketing prototype. This is an example of what type of resource constraint? A. Physical B. Technical C. People D. Equipment E. Time
C. People
More and more companies are discarding the traditional superior-subordinate performance feedback process and replacing it with a multi-rater appraisal called A. Critical incidences review. B. Management by objectives. C. The 360-degree feedback. D. Team evaluation survey. E. Retrospectives.
C. The 360-degree feedback.
There are two important factors that affect the recruitment of project members. Which of the following is one of those factors? A. The budget available B. The size of the project C. The management structure being used to complete the project D. The level of innovation and technical expertise needed E. Organizational culture
C. The management structure being used to complete the project
Adverse weather, design flaws, and equipment breakdown can create negative slack. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead E. Incentive contracts
C. Unforeseen project delays.
E. All of these are examples of what change management systems are designed to accomplish. Most change management systems are designed to identify proposed changes, list expected effects of proposed changes on schedule and budget, review, evaluate and approve or disapprove changes formally, negotiate and resolve conflicts of change, conditions and cost, communicate changes to parties affected, assign responsibility for implementing changes, adjust master schedule and budget, and track all changes that are to be implemented.
Change management systems are designed to accomplish all of the following EXCEPT A. Track all changes that are to be implemented. B. Review, evaluate, 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 these are examples of what change management systems are designed to accomplish.
When project managers impose a solution to dysfunctional conflict after listening to each party, they are __________ the conflict. A. Eliminating B. Controlling C. Mediating D. Arbitrating E. Encouraging
D. Arbitrating
The purpose of project evaluation is to assess how well A. The project team performed. B. The team members performed. C. The project manager performed. D. The project team and team members performed. E. The project team, team members and project manager performed.
E. The project team, team members and project manager performed.
Completing Team Evaluations relies upon ____________ to be in place before the project begins.
Core of conditions
Which of the following is NOT involved in risk control? A) Executing the risk response strategy B) Initiating contingency plans C) Establishing a change control system D) Establishing contingency funds E) Watching for new risks
D) Establishing contingency funds
This response is used when an identified Opportunity is not actively pursued A) Exploit B) Accept C) Share D) Enhance
D) Exploit
Compressing activities on a project with a sensitive project network will A) Increase risk of delaying the project B) Improve cost-time crashing success C) Reduce scheduling flexibility D) Increase risk of delaying the project and reduce scheduling flexibility
D) Increase risk of delaying the project and reduce scheduling flexibility
Most of the scheduling methods available today require the project manager to classify the project as either _______ constrained or ______ constrained. A)Time, quality B)Quality, resource C)Cost, time D)Quality, cost E)Time, resource
D) Time, resource
Most changes on a project are related to A. Scope Changes B. Improvement Changes C. Implementing Contingency Plans D. All of the above
D. All of the above
Because of circumstances beyond the control of the project team, many projects are easy for a review group to close down. This type of project closure is called A. Normal. B. Premature. C. Perpetual. D. Failed project. E. Changed priority.
D. Failed project.
All of the following are types of resource constraints EXCEPT A. Materials B. People C. Equipment D. Information E. Human.
D. Information
Which part of the final report is designed to be the most useful on future projects? A. Executive summary B. Review and analysis C. Recommendations D. Lessons learned E. Appendix
D. Lessons learned
The process for capturing lessons learned continues to evolve, but there are still many barriers to effectively capitalizing on lessons learned that have been identified. The following are examples of these barriers EXCEPT A. Lack of time. B. Teams get little direction or support after lessons are reported. C. Lessons learned often degenerate into blame sessions. D. Lessons learned are being used across different locations. E. The organizational culture doesn't support the effort that it takes to capitalize on lessons learned.
D. Lessons learned are being used across different locations.
In a resource-constrained project the third priority in assigning resources is usually given to activities with the A. Smallest duration B. Least slack C. Most slack D. Lowest identification number E. Highest cost.
D. Lowest identification number
Which of the following is commonly associated with high-performing project teams? A. Risk taking is controlled and not allowed to jeopardize the overall project B. Roles and specific responsibilities are well-defined C. A degree of competition among team members is encouraged D. Mistakes are viewed as opportunities for learning E. Team members are selected with similar talents to enhance cohesion
D. Mistakes are viewed as opportunities for learning
A Performance Appraisal generally provides A. Assessment of a team members' efforts. B. Rational for new assignments. C. Developmental information for a team member. D. None of these choices are correct
D. None of these choices are correct
A project can have a negative Schedule Variance and still be ahead of schedule when A. All budget targets have been achieved. B. Non-Critical task delays are greater than progress on the Critical Path. C. Progress on the Critical Path is faster than non-critical path tasks. D. None of these choices are correct
D. None of these choices are correct
Sometimes very high __________ costs are recognized before a project begins and reducing these costs through shorter project durations becomes a high priority .A. Labor B. Direct C. Project D. Overhead E. Interest
D. Overhead
Which of the following are required to assess the current status of a project using the earned-value cost/schedule system? A. BAC, EAC, and ETC B. VAC, EAC, and BAC C. CV, SV, and BAC D. PV, EV, and AC E. TCPI, EV, and PV
D. PV, EV, and AC
A guide who leads the project team through an analysis of project activities that went well and of what needs improvement and aids in the development of a follow-up action plan with goals and accountability is a(n) A. Owner. B. Project sponsor. C. Project manager. D. Project facilitator. E. Mediator.
D. Project facilitator.
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
Resources are adequate, but demand varies widely over the life of the project. Delaying noncritical activities to lower peak demand on resources is known as resource A. Shifting. B. Effectiveness. C. Manipulating. D. Smoothing. E. Allocation
D. Smoothing.
The first project meeting is critical to the early functioning of the project team. Which of the following is NOT true regarding this meeting? A. An overview of the project's scope and objectives should be addressed B. Interpersonal interaction concerns should be addressed C. The project manager must model how the team will work together D. The meeting will need to be as long as necessary to cover the main objectives of a first meeting E. The meeting should be productive, well-organized and realistic
D. The meeting will need to be as long as necessary to cover the main objectives of a first meeting
The essence of positive synergy can be found in the phrase A. Front of ship sink—back of ship sink. B. There is no "I" in team. C. Two heads are better than one. D. The whole is greater than the sum of the parts. E. If it doesn't kill you, it makes you stronger.
D. The whole is greater than the sum of the parts.
This is used to compare the cost accounts between organizational units and deliverables
Direct labor budget rollup
Which of the following is not one of the more common problems associated with scheduling multi-project resources? A) Overall schedule slippage B) Inefficient resource utilization C) Resource bottlenecks D) Both A and C are correct E) A, B, and C are all correct
E) A, B, and C are all correct
Change management systems are designed to accomplish all of the following EXCEPT A) Track all changes that are to be implemented B) Review, evaluate, 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
E) All
Which of the following groups should NOT be a part of the risk identification process? A) Project team B) Customers C) Subcontractors D) Vendors E) All
E) All
Which of the following groups should NOT be a part of the risk identification process? A) Project team B) Customers C) Subcontractors D) Vendors E) All of these groups can be included in the risk identification process.
E) All of these groups can be included in the risk identification process.
Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? A) Mitigating B) Retaining C) Ignoring D) Transferring E) Avoiding
E) Avoiding
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) Severity matrix
E) Severity matrix
Which of the following is NOT one of the more common problems associated with scheduling multi project resources? A) Overall schedule slippage B) Inefficient resource utilization C)Decline in project quality D)Resource bottlenecks E)Delays in one project causing delays in other projects
E)Delays in one project causing delays in other projects
Individual rewards for outstanding work would NOT include A. Letters of commendation. B. Public recognition. C. Desirable job assignments. D. Judiciously making exceptions to the rules. E. All of these are examples of individual rewards for outstanding work.
E. All of these are examples of individual rewards for outstanding work.
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
E. All of these are included
Which part of the final report includes backup data or details of analysis that would allow others to follow up if they wished? A. Executive summary B. Review and analysis C. Recommendations D. Lessons learned E. Appendix
E. Appendix
When a project starts with a high priority but it is canceled because its rank erodes or crashes during its project life cycle. This is an example of what type of project closure? A. Normal B. Premature C. Perpetual D. Failed project E. Changed priority
E. Changed priority
Strategies to manage dysfunctional conflict do NOT include _____ the conflict A. Control B. Arbitrate C. Mediate D. Accept E. Encourage
E. Encourage
During which stage of team development do team members establish ground rules and try to find out what behaviors are acceptable and what performance expectations are? A. Norming B. Storming C. Performing D. Adjourning E. Forming
E. Forming
A contractor finished a bridge across a lake 18 months early and received more than $6 million for the early completion. This is an example of reducing project duration caused by A. Imposed project deadlines. B. Time to market. C. Unforeseen project delays. D. High overhead. E. Incentive contracts.
E. Incentive contracts.
Gene is trying to order the concrete needed to continue his project. However, the supplier will not be able to deliver it until next week. This is an example of what kind of resource constraint? A. Working capital B. People C. Equipment D. Information E. Materials
E. Materials
The content of the final report typically includes the following topics EXCEPT A. Lessons learned. B. Review and analysis. C. Recommendations. D. Executive summary. E. Team reviews.
E. Team reviews.
Which of the following activities might you consider adding a time buffer to? A. Activities with severe risks B. Merge activities that are prone to delays C. Activities with scarce resources D. Noncritical activities with very little slack E. You might consider adding a time buffer to any of these activities
E. You might consider adding a time buffer to any of these activities
When reviewing the variance on a project, you compare Earned Value with
Expected Schedule Value
In organizations where projects are managed within a ____________, the team member's area manager, not the project manager, is responsible for assessing performance
Functional organization
B. Budget Budget reserves are set up to cover identified risks; these reserves are those allocated to specific segments or deliverables of the project.
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
The initial step in the risk management process is to
Identify the risks
D. Focus on consequences and not on the events that could produce consequences
One common mistake made early in the risk identification process is to A. Not consider all possibilities B. Encourage participants be over optimistic C. Support participants being over pessimistic D. Focus on consequences and not on the events that could produce consequences E. Give too much attention to past events
A. Risk breakdown structures Organizations use risk breakdown structures in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. The focus at the beginning should be on risks that can affect the whole project as opposed to a specific section of the project or network.
Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. A. Risk breakdown structures B. Contingency breakdown structures C. Scenario analysis D. Organizational breakdown structure E. Risk assessment
In order for lessons learned to be effective and usable by others a(n) ___________ needs to be assigned to assure it is properly documented and understood
Owner
The earned value of a project is the
Percent of the original budget that has been earned by actual work
The major deliverable when closing out a project that includes a causal analysis and identification of lessons learned is known as
Project Audit
A tool used to monitor past project schedule performance and current performance, and to estimate future schedule trends is a simple line chart known as a
Project control chart
Obtaining __________ is a major and critical closure activity for the Project Manager
Project deliverables
D. Transferring
Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it. A. Mitigating B. Retaining C. Ignoring D. Transferring E. Avoiding
Organizations use ________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk
Risk breakdown structures
E. Likelihood and impact.
Risks are evaluated in terms of A. Likelihood and cost. B. Cost and schedule. C. Impact and cost. D. Time and impact. E. Likelihood and impact.
A. Technical risks. Technical risks are problematic; they can often be the kind that cause the project to be shut down.
Risks that can result in a system or process that will not work are known as A. Technical risks. B. Funding risks. C. Schedule risks. D. Cost risks. E. Unnecessary risks.
C. Identify the risks.
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.
Jessica just received the following information on her project: PV =200, EV=300, AC=250, BAC=1500, EAC=1208. In terms of cost at completion
The project will currently finish under budget
C. Who will detect the occurrence of the risk event. In addition to evaluating the severity and probability of risk events the team also assesses when the event might occur and its detection difficulty.
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.
B. Retaining The risk of a project manager being struck by lightning at a work site would have major negative impact on the project, but the likelihood is so low it is not worthy of consideration. Conversely, people do change jobs, so an event like the loss of key project personnel would have not only an adverse impact but also a high likelihood of occurring in some organizations. If so, then it would be wise for that organization to be proactive and mitigate this risk by developing incentive schemes for retaining specialists and/or engaging in cross-training to reduce the impact of turnover.
The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Avoiding
E. Severity matrix. The risk severity matrix provides a basis for prioritizing which risks to address. Red zone risks receive first priority followed by yellow zone risks. Green zone risks are typically considered inconsequential and ignored unless their status changes.
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. Severity matrix.
C. Assess risks.
Tools such as a risk assessment form and a risk severity matrix are used to A. Identify risks. B. Control risks. C. Assess risks. D. Regulate risks. E. Respond to risks.
E. You might consider adding a time buffer to any of these activities Just as contingency funds are established to absorb unplanned costs, managers use time buffers to cushion against potential delays in the project. And like contingency funds, the amount of time is dependent upon the inherent uncertainty of the project. You might consider adding a time buffer to any of these activities
Which of the following activities might you consider adding a time buffer to? A. Activities with severe risks B. Merge activities that are prone to delays C. Activities with scarce resources D. Noncritical activities with very little slack E. You might consider adding a time buffer to any of these activities
E. All of these groups can be included in the risk identification process
Which of the following groups should NOT be a part of the risk identification process? A. Project team B. Customers C. Subcontractors D. Vendors E. All of these groups can be included in the risk identification process
E. All of these are included Failure Mode and Effects Analysis (FMEA) extends the risk severity matrix by including ease of detection in the equation: Impact x Probability x Detection = Risk Value.
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
D. Establishing contingency funds Risk control involves executing the risk response strategy, monitoring triggering events, initiating contingency plans, and watching for new risks. Establishing a change management system to deal with events that require formal changes in the scope, budget, and/or schedule of the project is an essential element of risk control.
Which of the following is NOT involved in risk control? A. Executing the risk response strategy B. Initiating contingency plans C. Establishing a change control system D. Establishing contingency funds E. Watching for new risks
C. Ignoring
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. Avoiding
D. Risk tracking The four steps in the risk management process are risk identification, risk assessment, risk response development and risk response control.
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
B. Management reserves Management reserve funds are needed to cover major unforeseen risks and, hence, are applied to the total project.
Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? A. Project reserves B. Management reserves C. Time buffers D. Activity reserves E. Budget reserves
A. Detection difficulty
_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have. A. Detection difficulty B. Impact scaling C. Probability analysis D. Awareness level E. Warning assessment
B. Opportunity management
_______________ focuses on how to respond to events that have a positive impact on a project. A. Risk management B. Opportunity management C. Value management D. Contingency management E. Prospect management
11. 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
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
a
20. 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
a
26. 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
a
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
a
Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? Avoiding Transferring Mitigating Retaining Ignoring
a
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
a
The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk Severity matrix. Assessment form. Responsibility matrix. Impact assessment. Scenario assessment.
a
Tools such as a risk assessment form and a risk severity matrix are used to. Assess risks. Regulate risks. Control risks. Identify risks. Respond to risks.
a
what is the purpose of a contingency fund in executing a response to an opportunity (positive risk) occurring? a. to take advantage of opportunities b. to eliminate project risks c. none, it is not built into the original plan
a
which statement is correct with respect to transferring risk? a. transfer of risk does not change the likelihood or impact b. transfer of risk increases total cost of the risk occurring c. transferring risk infers postponement or delay of a risk occurrence
a
Sally receives the following information on her project: PV = 100, AC = 75, EV = 100. How well is the project doing in terms of budget? a. 25 under budget b. 50 under budget c. 25 over budget d. 50 over budget e. Right on budget
a. 25 under budget
When reducing project duration, the crash cost per unit has to be calculated and the maximum units each activity can be reduced must be known. After this, the critical path must be identified. What is the next step? a. Find the activity with the lowest crash cost b. Find the activity with the steepest cost slope c. Calculate the crash point d. Calculate indirect cost per time unit e. Calculate the optimum cost-time point
a. Find the activity with the lowest crash cost
Jim receives the following information on his project: PV = 1000, EV = 1200, AC = 800, BAC = 2000, EAC = 1333. How is the project doing in terms of schedule? a. More work has been done than planned b. There is not enough information to draw a conclusion c. The same amount of work has been done than planned d. Less work has been done than planned e. The project has cost less than planned
a. More work has been done than planned
When someone familiar with each task estimates what percent of the task has been completed or how much of the task remains, they are creating a method for assigning costs to the baseline called the a. Percent complete rule. b. Task complete rule. c. Work complete rule. d. 0/100 percent rule. e. Degree complete rule.
a. Percent complete rule.
Nancy tells her supervisor that as of right now, $1.05 worth of work has been accomplished for each $1 worth of scheduled work. Nancy got this information from viewing the a. SPI. b. SV. c. PCIB. d. TCPI. e. CPI.
a. SPI
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
b
15. The easiest and most commonly used technique for analyzing risks is _____ analysis. A. Probability B. Scenario C. Payback D. Risk/reward E. Impact
b
21. 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
b
27. 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
b
28. 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
b
31. 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
b
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
The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as Contingency planning. Risk management. Disaster protection. Risk forecasting. Scenario analysis.
b
The initial step in the risk management process is to Set aside budget funds for managing the risks. Identify the risks. Appoint a risk manager. Determine the level of acceptable risk. Assess the risk potential.
b
Which of the following groups should NOT be a part of the risk identification process? Vendors All of these groups can be included in the risk identification process Subcontractors Customers Project team
b
Which of the following is NOT one of the potential responses to a specific risk event? Retaining Ignoring Avoiding Mitigating Transferring
b
_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have. Warning assessment Detection difficulty Impact scaling Awareness level Probability analysis ©2017 McGraw-Hill Education. All rights reserved.
b
what is the benefit of a risk management plan for a project? a. preventing all project risk b. minimizing the impact of risks occurring c. creating multiple work breakdown structures d. providing flexibility for project scope development
b
what type of contingency is typically required to manage a schedule risk , i.e. finishing a project late? a. back up strategies b. budget reserves, i.e. cash c. mitigation of risk likelihood d. inflation factor adjustments
b
which mitigation strategy is normally first pursued to minimize the cost impact of a risk event occurring? a. avoidance b. reduce likelihood c. reduce impact
b
Susan is to conduct environmental testing but the chamber cannot hold all the equipment that she wants to test. This is an example of a constraint that could impact the sequence and timing of activities in a project network. What type of constraint is it? a. Technical b. Physical c. Time d. Scheduling e. Resource
b. Physical Since physical space allows limited testing at once, it may take longer for testing to be completed. This is a physical constraint.
13. 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
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
c
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
c
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
c
A list of questions that address traditional areas of uncertainty on a project is termed a Query. Checklist. Risk profile. Questionnaire. Research matrix.
c
After your team has successfully identified potential risks that could affect the project, what is the next step? Mitigate risks Decide how to respond to all risks Assess identified risks Create a risk breakdown structure Create contingency plans
c
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
c
One common mistake made early in the risk identification process is to Support participants being over pessimistic Give too much attention to past events Focus on objectives and not on the events that could produce objectives Not consider all possibilities Encourage participants be over optimistic
c
Risks are evaluated in terms of Time and impact. Cost and schedule. Likelihood and impact. Likelihood and cost. Impact and cost.
c
The cost impact of a risk event occurring as a project proceeds through its life cycle tends to Rise sharply and then level out. Slowly drop. Slowly rise. Remain about the same. Drop sharply and then level out.
c
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
c
The risk assessment form contains all of the following EXCEPT When the risk event may occur. Potential impact of the risk event. Who will detect the occurrence of the risk event. Difficulty of detecting the occurrence of the risk event. Likelihood of the risk event occurring.
c
The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following? Transferring Mitigating Retaining Ignoring Avoiding
c
what is required in order for risk response control to succeed? a. work breakdown structure dictionary b. mitigation of risk likelihood c. documentation of responsibility
c
where in the project life cycle should a project manager begin the risk identification process? a. scope development b. defining c. planning d. executing e. delivering
c
which term is used to best describe the documents needed to develop an adequate risk response control plan? a. work breakdown structure b. work breakdown structure dictionary c. risk register d. project scope
c
In a resource-constrained project the second priority in assigning resources is usually given to activities with the a) Lowest identification number. b) Highest cost. c) Smallest duration. d) Most slack. e) Least slack.
c) Smallest duration.
While balancing assignments, a project manager must also balance: a) Overall project cost. b) Work package slack. c) Talent development. d) Earned value.
c) Talent development.
Which part of the final report highlights the key findings and facts relating to the project implementation? a. Review and analysis b. Appendix c. Executive summary d. Recommendations e. Lessons learned
c. Executive summary
12. 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
d
16. 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
d
29. 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
d
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
d
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
d
A key distinction between a risk response and a contingency plan is A risk response is established only for moderate risks while contingency plans are established for major risks. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning.
d
Change management systems are designed to accomplish all of the following EXCEPT Reflect scope changes in baseline and performance measures. Review, evaluate, and approve/disapprove proposed changes formally. Identify expected effects of proposed changes on schedule and budget. All of these are examples of what change management systems are designed to accomplish. Track all changes that are to be implemented.
d
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
Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it. Mitigating Ignoring Retaining Transferring Avoiding
d
The chances of a risk event occurring as a project proceeds through its life cycle tend to Slowly rise. Drop sharply and then level out. Remain about the same. Slowly drop. Rise sharply and then level out.
d
Which of the following is NOT involved in risk control? Initiating contingency plans Establishing a change control system Watching for new risks Establishing contingency funds Executing the risk response strategy
d
Which of the following is NOT one of the steps in the risk management process? Risk response development Risk assessment Risk identification Risk tracking Risk response control
d
Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? Activity reserves Time buffers Project reserves Management reserves Budget reserves
d
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
_______________ focuses on how to respond to events that have a positive impact on a project. Risk management Value management Prospect management Opportunity management Contingency management
d
in a generic project life cycle, which phase has the highest cost should a negative risk event occur? a. scope development b. defining c. planning d. delivering
d
When crashing a schedule, this may set in when a least-cost method is used. a) Increased cost b) Increased risk c) Decrease in available management reserve d) Fatigue and resentment
d) Fatigue and resentment
When deciding which staff to team-up to work on work packages, factors to consider are: a. Practical Experience. b. Years of working in the company. c. Work habits. d. All of these choices are correct.
d. All of these choices are correct.
The third step in the project control process for measuring and evaluating project performance is to a. Measure both progress and performance. b. Review spending with team members. c. Review the baseline plan with top management. d. Compare the plan against actual performance. e. Analyze inputs to the control system.
d. Compare the plan against actual performance.
In a Project Cost-Duration Graph, total project costs are a sum of a. Labor, material and equipment costs .b. Direct costs plus interest. c. Direct costs and the project manager's salary. d. Direct and indirect costs. e. Direct labor costs and the project manager's salary.
d. Direct and indirect costs.
The earned value system starts with the time-phased costs that provide the project baseline, which is called the a. Scheduled value of work completed. b. Planned budgeted value of work completed. c. Scheduled value of work scheduled. d. Planned budgeted value of work scheduled. e. Earned value of work scheduled
d. Planned budgeted value of work scheduled.
Reducing project duration a. Should be considered for all projects. b. Can only be done when resources are not constrained c. Is always more expensive. d. Tends to increase network sensitivity. e. Involves crashing all activities to their crash point
d. Tends to increase network sensitivity.
17. 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
19. 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
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
e
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
e
32. 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
e
A fixed price contract is an example of Ignoring risk. Avoiding risk. Accepting risk. Mitigating risk. Transferring risk.
e
An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a Bad luck. Disaster. Random chance. Hazard. Risk.
e
Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. Contingency breakdown structures Organizational breakdown structure Risk assessment Scenario analysis Risk breakdown structures
e
Risks that can result in a system or process that will not work are known as Cost risks. Funding risks. Schedule risks. Unnecessary risks. Technical risks.
e
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
Which of the following is NOT included in a Failure Mode and Effects Analysis? Probability Risk value Detection Impact All of these are included
e
Of the following costs, which are NOT included in baseline? a. Suppliers b. Equipment c. Contractors d. Labor e. Budget reserves
e. Budget reserves
When it is necessary to reduce project duration and resources are constrained, which of the following is NOT a reasonable option? a. Reduce project scope b. Compromise quality c. Critical-chain project management d. Fast-tracking e. Establishing a core project team
e. Establishing a core project team
An analysis carried out during and shortly after the project life cycle that attempts to capture positive and negative learning is represented in which of the following? a. Strategic objectives b. Scenario analysis c. Performance evaluation d. Variance analyses e. Lessons learned
e. Lessons learned
The first step in the project control process for measuring and evaluating project performance is to a. Review the project priority matrix. b. Determine the project deliverables. c. Analyze the project budget. d. Determine the project objectives. e. Set a baseline plan.
e. Set a baseline plan.
The indicator that tells you the amount each remaining dollar must earn in order for the project to stay within budget is the a. PCIC. b. SPI. c. VAC. d. CPI. e. TCPI.
e. TCPI.
Intense global competition and rapid technological advances create pressure to develop projects rapidly. This is an example of reducing project duration caused by a. High overhead. b. Imposed project deadlines. c. Incentive contracts. d. Unforeseen project delays. e. Time to market.
e. Time to market.
A ___________ Gantt chart is a simple and effective way to depict progress on a project. a. Simple b. Control c. Variance d. Baseline e. Tracking
e.Tracking
