SCMA 350 Chapter 10

Which of the following accurately describes risk in project management? a. A risk may impact the project in a positive or negative way. b. Some projects have no risks. c. Risk assessment should remain objective and uninfluenced by stakeholder priorities. d. Project managers should always be risk averse

a. A risk may impact the project in a positive or negative way.

Which of the following describes the activities appropriately performed by the project team during Perform Qualitative Risk Analysis? a. Team members assess the probability of occurrence and severity of impact for identified risks. b. Team members develop contingency plans for all risks to avoid adverse impacts to project objectives. c. Team members identify potential risk events. d. Team members define how to conduct risk management activities for the project.

a. Team members assess the probability of occurrence and severity of impact for identified risks.

All of the following are among the classic risk response strategies EXCEPT: a. share a threat b. transfer a threat c. enhance an opportunity d. avoid a threat

a. share a threat

All of the following criteria can be used to categorize project risks EXCEPT: a. whether the risk is a known known b. the project objective that may be impacted by the risk c. whether the risk is internal or external to the performing organization d. the project life cycle phase

a. whether the risk is a known known

On agile projects, detailed risk management activities may occur during all of the following times EXCEPT: a. While planning each subsequent iteration. b. During early risk planning at the start of the project. c. In daily stand-up meetings. d. During retrospectives at the end of each iteration.

b. During early risk planning at the start of the project.

All of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT: a. It enables project managers to eliminate or reduce the impact of some threats. b. It enables the project manager to identify and eliminate all risks c. It facilitates communication with various project stakeholders. d. It enables project managers to capitalize on some opportunities.

b. It enables the project manager to identify and eliminate all risks

All of the following describe an appropriate application of Plan Risk Responses in project management EXCEPT: a. Risk response planning should address both opportunities and threats. b. Responses should be created for every identified project risk. c. The expectations of the sponsor and key stakeholders should influence the risk responses that are developed. d. Often multiple strategies are identified for a single risk.

b. Responses should be created for every identified project risk.

All of the following activities are appropriate upon completion of risk response planning EXCEPT: a. The risk register should be updated to reflect the risk response strategies. b. The risk register should be baselined after planning is completed, and should not be updated once the project is in flight. c. The project plan should be updated to reflect any changes to the project schedule, budget or resource assignments. d. A single person should be assigned as the owner of each risk.

b. The risk register should be baselined after planning is completed, and should not be updated once the project is in flight.

All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT: a. reviewing project documents b. documenting lessons learned c. interviewing stakeholders d. brainstorming among team members and subject matter experts

b. documenting lessons learned

Which of the following activities illustrates a risk response strategy designed to mitigate a threat? a. adopt a fixed price type contract b. train a team member to cover for a potentially unavailable key resource c. change the project plan or scope d. develop change control procedures

b. train a team member to cover for a potentially unavailable key resource

When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies? a. avoid a threat b. transfer a threat c. mitigate a threat d. assume a threat

b. transfer a threat

Which of the following describes the appropriate use of a cause-and-effect diagram to support project risk analysis? a. The project team begins by identifying strengths, weaknesses, opportunities and threats. b. Assumptions and constraints are organized in a fishbone pattern. c. Although effects are more visible, it is often easier to alter the effect by changing the underlying cause. d. Team members are encouraged to keep asking "when?" to break down risks into more detailed causes.

c. Although effects are more visible, it is often easier to alter the effect by changing the underlying cause.

All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT: a. Large, complex and expensive projects stand to benefit from the additional rigor of quantitative risk analysis techniques. b. Quantitative techniques are used when it is critical to predict the probability of completing a project on time or within budget with confidence. c. Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible. d. Decision Tree Analysis and Simulation techniques such as Monte Carlo Analysis are examples of useful quantitative risk analysis techniques.

c. Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible.

Consider the excerpt of the Internet Project risk register presented in Figure 10-1. Which of the following risk events should receive the highest priority for the development of risk responses? a. A - project requires new technology and support structure b. B - web infrastructure lacks sufficient transaction capacity c. C - IS resources are spread too thin d. D - The intranet site suffers a security breach

c. C - IS resources are spread too thin

Which of the following quantitative risk analysis techniques is used to determine which risks have the most powerful impact on the project, with results displayed in the form of a tornado diagram? a. Failure Mode and Effects Analysis (FMEA) b. Expected Monetary Value c. Sensitivity Analysis d. Simulation Techniques such as Monte Carlo Analysis

c. Sensitivity Analysis

Risk is often considered in terms of impact to project success. Which of the following is NOT a valid measure of project success? a. meeting specifications b. customer related measures such as customer satisfaction c. achieving efficiencies in ongoing operations d. measures related to the firm's objectives including market share or new products

c. achieving efficiencies in ongoing operations

Which of the following activities illustrates a risk response strategy designed to research a threat or an opportunity? a. establish triggers and update them frequently b. establish time or cost contingencies c. construct a prototype to learn more about a candidate solution d. identify a risk owner to each high priority risk

c. construct a prototype to learn more about a candidate solution

All of the following activities illustrate a risk response strategy designed to exploit an opportunity EXCEPT: a. identify trigger condition b. assign more or better resources c. purchase insurance d. give the project more visibility

c. purchase insurance

Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review? a. review the project schedule to determine if certain people are overloaded b. review previous projects to verify that each current assumption is correct c. review the communication plan to determine where poor communications could cause a problem d. review sunk costs to determine project continuance

c. review the communication plan to determine where poor communications could cause a problem

All of these describe contemporary methods of risk prioritization in project management EXCEPT: a. Risk prioritization is generally based on the probability of occurrence and severity of impact of each identified risk. b. Some organizations place a higher priority on risks that are likely to happen soon. c. Some organizations call attention to the risks that are difficult to detect. d. Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register.

d. Results of quantitative risk analysis are used for clarification purposes and are typically not documented in the risk register.

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT: a. develop a flow chart that shows how people, materials or data flow from one person or location to another b. conduct a root cause analysis c. understand trigger conditions that indicate a risk is about to occur d. list all risks in a risk register

d. list all risks in a risk register