Project Risk Management

The enterprise environmental factors that can influence the Identify Risk process include all of the following except: a) Assumptions analysis b) Risk attitudes c) Industry studies d) Commercial data bases

a) Assumptions analysis

Your team is using a model that translates the uncertainties specified at a detailed level into their potential impact on project objectives at the level of the whole project. The technique being used is: a) Modeling and simulation b) Data precision analysis c) Decision tree analysis d) Quantitative trends

a) Modeling and simulation

All of the following are tools and techniques for risk identification except: a) Monte Carlo simulation b) Interviewing c) SWOT analysis d) Delphi technique

a) Monte Carlo simulation

You have just completed an analysis of project risks and have prioritized them using a probability and impact matrix. The approach you used to prioritize the risks is: a) Qualitative analysis b) Quantitative analysis c) Sensitivity analysis d) Earned value analysis

a) Qualitative analysis

A project manager is faced with a product design risk issue. It has been determined that the materials used to house a critical component of the product are subject to significant corrosion as a result of exposure to the typical work environment. The project team has decided to modify the design using very expensive corrosion-resistant materials in this component, which will basically eliminate the risk. The technique used by the team is: a) Risk avoidance b) Risk acceptance c) Risk transference d) Risk deflection

a) Risk avoidance

Using the following information and a normal distribution curve, what is the probability that the project will be completed in 64 days? Optimistic time is 48 days. Pessimistic time is 72 days. Most likely time is 60 days a) 76% b) 84% c) 50% d) 100%

b) 84%

Your team is using a probability impact matrix. The scales on each axis of the matrix are labeled Very High, High, Moderate, Low and Very Low. Your team is using: a) A cardinal scale b) An ordinal scale c) SWOT analysis d) Quantitative risk analysis

b) An ordinal scale

You are managing a project and have a major decision to make about a change in the plan. You decide to contact several subject matter experts to obtain their opinions before making a decision. Each expert is unaware of the participation by any of the other experts you have contacted. The process being used is: a) Nominal group technique b) Delphi technique c) Brainstorming d) SWOT analysis

b) Delphi technique

You believe the project's product design effort would be a major challenge to the team's abilities and you do not have the tools or material to manage it effectively. You decide to seek a supplier who specializes in the specific technical area. You sign a fixed-price contract to execute this piece of the project work. This is an example of: a) Risk avoidance b) Risk transfer c) Risk mitigation d) Risk acceptance

b) Risk transfer

You notice that some of your project team members are not attending your meetings and that there has been an increase in requests for transfer from your project. These are examples of: a) Risk events b) Risk triggers c) Primary risks d) Residual risks

b) Risk triggers

Purchasing insurance is considered an example of risk: a) Mitigation b) Transfer c) Acceptance d) Avoidance

b) Transfer

The Ishikawa or fishbone diagram is used to display: a) System flows b) Predecessors and successor tasks c) Cause and effects d) Casual influences and relationships between activities

c) Cause and effects

The two dimensions of risk used to determine expected value are: a) Consequence and contingencies b) Probability and assumptions analysis c) Probability and consequence d) Probability and data precision

c) Probability and consequence

Outputs from Monitor Risks include all of the following except: a) Requested changes b) Risk Register updates c) Risk Audits d) Project plan updates

c) Risk Audits

Project risk is typically characterized by what three elements: a) Severity of impact, duration of impact and cost of impact b) Identification, type of risk category and probability of impact c) Risk event, risk probability and the amount at stake d) Occurrence, frequency and cost

c) Risk event, risk probability and the amount at stake

All of the following are tools and techniques for Control Risks except: a) Reserve analysis b) Project risk audits c) Technical performance measurements d) Exploration

d) Exploration

You are the project manager assigned to a critical project, which requires that you handle project risk intentionally and methodically, so you have assembled only the project team. They have identified 32 potential project risks, determined what would trigger the risks, rated and ranked each risk using a risk rating matrix. You have also reviewed and verified all documented assumptions from the project team and verified the sources of data used in the process of identifying and rating the risks. You are continuing to move through the risk management process. What have you forgotten to do? a) Conduct a Monte Carlo simulation b) Determine which risks are transferable c) Determine the overall riskiness of the project d) Involve other stakeholders

d) Involve other stakeholders

Your team has utilized all of the appropriate tools and techniques for responding to identified project risks and has discovered that some risks have been reduced in impact but remain a potential threat. These risks require further monitoring and are referred to as: a) Secondary risks b) Primary risks c) Cumulative risks d) Residual risks

d) Residual risks

All of the following are inputs to the process of Plan Risk Management except: a) Project Scope Statement b) Project Management Plan c) Organizational Process Assets d) Risk Register

d) Risk Register

Defining _____________ will provide a structure for systematically identifying risks to a consistent level of detail during the project planning process. The areas defined in this process should reflect common sources of risk for the industry or application area. a) Assumptions b) Constraints c) The product description d) Risk categories

d) Risk categories