INEN 416 Chp 7
All of the following are included in the risk identification process except
Competitors
A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality.
Contingency plan
A Risk Response Matrix contains all of the following except
Contingency plan Trigger Who is responsible Response ALL of these are included in the matrix
The ________ impact of a risk event in a project is less if the event occurs earlier rather than later.
Cost
One of the keys to success in risk identification is
Critical thinking
The likelihood of a risk event occurring ________ as a project goes through its life cycle.
Decreases
Change management systems are designed to accomplish all of the following except:
ALL of the above are correct
The "Snapshot from Practice" case where Ellipsus Systems developed parallel prototype systems (WAP and JAVA) is an example of _________ a risk.
Avoiding
Technical risks are:
Can often be the kind that cause the project to be shut down. Problematic Both A and B are correct
The vertical scale on the Risk Severity Matrix measures the _________ of a potential risk event.
Likelihood
The two scales of a risk severity matrix measure
Likelihood, impact
________ reserves are controlled by the project manager and used to cover major unforeseen risks to the entire project.
Management
Which of the following is typically included in risk profiles?
Management Aspects Technical Aspects Both A and C
Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project?
Management reserves
Which of the following would not be considered a threat?
Meeting the project schedule
The 1999 NASA Mars Climate Orbiter is an example of
Mismanaged risk control
Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.
Mitigating
The demolition of the Seattle Kingdome (Snapshot from Practice) is an example of which of the following?
Mitigating
Which of the following is used to review activity and project risk?
PERT
In a ________, three different estimates of activity times are used to statistically predict the time an activity will take to complete.
Probability analysis
Which of the following is not one of the probability analysis tools?
Ratio/range analysis
If a risk event is very unlikely to occur the project owner would probably ________ the risk.
Retain
The risk associated with one of the key members being stuck by lightning would most likely be handled by which of the following?
Retaining
An uncertain event or condition that, if it occurs, has a positive or negative effect on a project objectives is termed?
Risk
A ____________ is useful for summarizing how the project team plans to manage risks that have been identified.
Risk Response Matrix
The ________ form identifies each risk event, the likelihood of it occurring, the potential impact, when it may occur, and the degree of difficulty in detecting it.
Risk assessment
The first step in the Risk Management process is ________.
Risk identification
The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as
Risk management
A ________ is a list of questions that address traditional areas of uncertainty on a project.
Risk profile
A list of questions that address traditional areas of uncertainty on a project is termed a risk
Risk profile
Detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners and current status is called:
Risk register
A ________ identifies what to do if a potential risk event actually occurs.
Risk response matrix
The ________ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks.
Risk severity
The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk
Risk severity matrix
Which of the following is not one of the steps in the risk management process?
Risk tracking
The easiest and most commonly used technique for analyzing risks is _____ analysis.
Scenario
The easiest and most commonly used technique for analyzing risks is ________.
Scenario analysis
When the entertainment industry formed a consortium to define a common operating format for DVD it was ________ the risk.
Sharing
The chances of a risk event occurring as a project proceeds through its life cycle tends to
Slowly drop
The cost impact of a risk event occurring as a project proceeds through its life cycle tends to
Slowly rise
Risk events such as inflation, market acceptance, and government regulations are referred to as ________.
Threats
Performance bonds, warranties, and insurance are examples of ________ a risk.
Transferring
A risk profile is a list of questions that have been developed and refined from previous, similar projects.
True
Budget reserves are setup to cover identified risks associated with specific segments of a project while management reserves are set up to cover unidentified risks associated with the total project.
True
Change management systems involve reporting, controlling, and recording changes to the project baseline.
True
Contingency funding is made up of budget reserves and management reserves.
True
Fixed price contracts are an example of transferring risk from an owner to a contractor.
True
In a Risk Severity Matrix a green zone risk is considered inconsequential and ignored unless their status changes.
True
One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.
True
Risks such as inflation and monetary exchange rates are not usually included in a project's risk assessment.
True
Since the goal is to find problems before they happen, the project manager should encourage critical thinking when it comes to risk identification.
True
The FMEA method calculates a risk value by assigning ease of detection ratings to the key risk elements.
True
The probability that a risk event will occur is higher during the initial stages of a project.
True
The quality and credibility of the risk analysis process requires that different levels of risk probabilities and impacts be defined.
True
The risk assessment form contains all of the following except
Who will detect the occurrence of the risk event
Performance bonds, warranties, and guarantees are financial instruments used to share risk.
False
Project managers need to establish an environment in which participants feel comfortable raising concerns and admitting mistakes.
False
Scheduling outdoor work in the summer, investing in up front safety training, and choosing high quality materials are examples of retaining a risk.
False
The Risk Severity Matrix rates risk events based upon schedule and cost.
False
The first step in the risk management process is Risk Assessment.
False
The risk identification process should be limited to just the core project team.
False
The initial step in the risk management process is to
Identify the risks
Which of the following is not one of the potential responses to a specific risk event?
Ignoring
The horizontal scale on the Risk Severity Matrix measures the _________ of a potential risk event.
Impact
Which of the following is not included in a Failure Mode and Effects Analysis?
Impact Probability Detection Risk value ALL of these are included
In the beginning the focus of risk management should be on risks that
Impact the whole project
Due to the impact over a long period of time, risk events that occur in the early stages of a project will have a greater cost impact than those that occur in later stages.
False
During risk identification the smaller risks should be identified first because they will naturally lead to identifying the larger risks.
False
Adopting proven technology instead of experimental technology is an example of mitigating a risk.
False
Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.
Budget
________ reserves are identified for specific work packages and cover risks that have a low probability of occurring.
Budget
This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks.
FMEA analysis
In __________ the Risk Severity Matrix is extended by including the ease of detecting a risk event occurring.
Failure Mote and Effects Analysis (FMEA)
One common mistake made early in the risk identification process is to
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:
From previous, similar projects
