Quizz - Chapter 7 - PM - Winter 2018 OSU
41. The vertical scale on the Risk Severity Matrix measures the _________ of a potential risk event.
Likelihood
52. ________ reserves are controlled by the project manager and used to cover major unforeseen risks to the entire project.
Management
54. A ____________ is useful for summarizing how the project team plans to manage risks that have been identified.
Risk Response Matrix
40. The ________ matrix is divided into red, yellow, and green zones representing major, moderate, and minor risks.
Risk Severity
55. The probability that a risk event will occur is higher during the initial stages of a project. A. True B. False
A
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
3. 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
58. 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. A. True B. False
A
59. Risks such as inflation and monetary exchange rates are not usually included in a project's risk assessment. A. True B. False
A
61. A risk profile is a list of questions that have been developed and refined from previous, similar projects. A. True B. False
A
63. Since the goal is to find problems before they happen, the project manager should encourage critical thinking when it comes to risk identification. A. True B. False
A
65. In a Risk Severity Matrix a green zone risk is considered inconsequential and ignored unless their status changes. A. True B. False
A
66. The quality and credibility of the risk analysis process requires that different levels of risk probabilities and impacts be defined. A. True B. False
A
68. The FMEA method calculates a risk value by assigning ease of detection ratings to the key risk elements. A. True B. False
A
70. Fixed price contracts are an example of transferring risk from an owner to a contractor. A. True B. False
A
72. 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. A. True B. False
A
73. Change management systems involve reporting, controlling, and recording changes to the project baseline. A. True B. False
A
74. Project managers need to establish an environment in which participants feel comfortable raising concerns and admitting mistakes. A. True B. False
A
75. Contingency funding is made up of budget reserves and management reserves. A. True B. False
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
45. The "Snapshot from Practice" case where Ellipsus Systems developed parallel prototype systems (WAP and JAVA) is an example of _________ a risk.
Avoiding
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
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
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
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
4. 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
56. 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. A. True B. False
B
57. During risk identification the smaller risks should be identified first because they will naturally lead to identifying the larger risks. A. True B. False
B
60. The first step in the risk management process is Risk Assessment. A. True B. False
B
62. The risk identification process should be limited to just the core project team. A. True B. False
B
64. The Risk Severity Matrix rates risk events based upon schedule and cost. A. True B. False
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 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.
67. Adopting proven technology instead of experimental technology is an example of mitigating a risk. A. True B. False
B - Avoiding
71. Scheduling outdoor work in the summer, investing in up front safety training, and choosing high quality materials are examples of retaining a risk. A. True B. False
B - Mitigating
69. Performance bonds, warranties, and guarantees are financial instruments used to share risk. A. True B. False
B - Transfer
51. ________ reserves are identified for specific work packages and cover risks that have a low probability of occurring.
Budget
1. 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
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
6. 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
53. A ____________ is an alternative that will be used if a possible foreseen risk event becomes a reality.
Contingency
33. The ________ impact of a risk event in a project is less if the event occurs earlier rather than later.
Cost
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
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
5. 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
7. 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
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
34. The likelihood of a risk event occurring ________ as a project goes through its life cycle.
Decreases
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
2. 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 same E. Slowly drop
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
43. In __________ the Risk Severity Matrix is extended by including the ease of detecting a risk event occurring.
FMEA
42. The horizontal scale on the Risk Severity Matrix measures the _________ of a potential risk event.
Impact
46. Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.
Mitigating
44. In a ________, three different estimates of activity times are used to statistically predict the time an activity will take to complete.
Probability Analysis
49. If a risk event is very unlikely to occur the project owner would probably ________ the risk.
Retain
39. 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
35. The first step in the Risk Management process is ________. risk identification
Risk Identification
37. A ________ is a list of questions that address traditional areas of uncertainty on a project.
Risk Profile
50. A ________ identifies what to do if a potential risk event actually occurs.
Risk response matrix
38. The easiest and most commonly used technique for analyzing risks is ________.
Scenario analysis
48. When the entertainment industry formed a consortium to define a common operating format for DVD it was ________ the risk.
Sharing
36. Risk events such as inflation, market acceptance, and government regulations are referred to as ________.
Threats
47. Performance bonds, warranties, and insurance are examples of ________ a risk.
Transferring