EC Chapter 11

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

False

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

True

The last step in project risk management is deciding how to address the knowledge area for a particular project by performing risk management planning.

False

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

False

Top Ten Risk Item Tracking is a quantitative risk analysis tool.

False

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.

True

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

True

One possible response to managing negative risk it to accept the potential effects from the risk.

True

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

True

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

True

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.

True

The main output of qualitative risk analysis is updating the risk register.

True

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

True

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

False

The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals produce through brainstorming in small, face-to-face groups.

False

Unknown risks can be managed proactively.

False

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

True

Large, complex projects involving leading-edge technologies often require extensive quantitative risk analysis.

True