CHAPTER 7- Managing Risk

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

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

All

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

Avoiding

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

Establishing Contingency Funds

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

Likelihood and Impact

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

Retaining

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

Risk

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

Risk breakdown structures

_______________ focuses on how to respond to events that have a positive impact on a project. A) Risk management B) Risk management C) Value management D) Contingency management E) Prospect management

Risk management

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

Risk profile

Which of the following is NOT one of the steps in the risk management process? *** FED UP QUESTION A IS STRAIGHT FROM THE WEBSITE**** A) Which of the following is NOT one of the steps in the risk management process? B) Risk assessment C) Risk identification D) Risk tracking E) Risk response control

Risk tracking

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

Severity Matrix

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

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

A Fixed price contract is an example of ___________. A) Avoiding risk B) Transferring risk C) Accepting risk D) Ignoring risk E) Mitigating risk

Transferring Risk