System Analysis and Design: Project Management Quiz 12 (CH11)

Which document contains results of various risk management processes; it is often displayed in a table or spreadsheet format? Answers: a. risk register b. process flow chart c. work breakdown structure d. influence diagram

risk register

Which action involves eliminating a specific threat, usually by eliminating its causes? Answers: a. risk mitigation b. risk avoidance c. risk acceptance d. risk transference

risk avoidance

Which action involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk? Answers: a. risk sharing b. risk enhancement c. risk exploitation d. risk acceptance

risk enhancement

The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring. Answers: a. Top Ten Risk Item Tracking chart b. probability/impact matrix c. expectations management matrix d. requirements traceability matrix

probability/impact matrix

Which action applies to positive risks when the project team cannot or chooses not to take any actions toward a risk? Answers: a. risk exploitation b. risk sharing c. risk acceptance d. risk enhancement

risk acceptance

Which process involves numerically estimating the effects of risks on project objectives? Answers: a. performing quantitative risk analysis b. identifying risks c. performing qualitative risk analysis d. planning risk responses

performing quantitative risk analysis

What process involves deciding how to approach and plan the risk management activities for the project? Answers: a. performing qualitative risk analysis b. identifying risks c. planning risk management d. performing quantitative risk analysis

planning risk management

Which process involves taking steps to enhance opportunities and reduce threats to meeting project objectives? Answers: a. performing quantitative risk analysis b. planning risk responses c. performing qualitative risk analysis d. controlling risk

planning risk responses

Which action involves shifting the consequence of a risk and responsibility for its management to a third party? Answers: a. risk acceptance b. risk transference c. risk mitigation d. risk avoidance

risk transference

Risk utility rises at a decreasing rate for a _____ person. Answers: a. risk-averse b. risk-neutral c. risk-seeking d. risk-indifferent

risk-averse

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area. Answers: a. human resources b. procurement c. integration d. quality

procurement

The risk register can be created with a simple Microsoft Word or Excel file. Answers: True False

True

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

False

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

True

One possible response to managing negative risk it to accept the potential effects from the risk. Answers: True False

True

Risks can have both negative and positive effects on meeting project objectives. Answers: True False

True

The main output of qualitative risk analysis is updating the risk register. Answers: True False

True

Which action involves doing whatever you can to make sure the positive risk happens? Answers: a. risk enhancement b. risk exploitation c. risk sharing d. risk acceptance

risk exploitation

Which action involves reducing the impact of a risk event by reducing the probability of its occurrence? Answers: a. risk mitigation b. risk transference c. risk acceptance d. risk avoidance

risk mitigation

Top Ten Risk Item Tracking is a quantitative risk analysis tool. Answers: True False

False

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

True

Which type of person achieves a balance between risk and payoff? Answers: a. risk-averse b. risk-fearing c. risk-seeking d. risk-neutral

risk-neutral

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

False

Which analysis technique simulates a model's outcome many times to provide a statistical distribution of the calculated results? Answers: a. systems b. Monte Carlo c. sensitivity d. NPV

Monte Carlo

What is the first step in a Monte Carlo analysis? Answers: a. Determine the probability distribution of each variable. b. Collect the most likely, optimistic, and pessimistic estimates for the variables in the model. c. For each variable, such as the time estimate for a task, select a random value based on the probability distribution for the occurrence of the variable. d. Run a deterministic analysis or one pass through the model using the combination of values selected for each one of the variables.

Collect the most likely, optimistic, and pessimistic estimates for the variables in the model.

_____ are predefined actions that the project team will take if an identified risk event occurs. Answers: a. Workarounds b. Contingency plans c. Management reserves d. Secondary risks

Contingency plans

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

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. Answers: True False

True

Which diagramming technique is used to help select the best course of action in situations in which future outcomes are uncertain? Answers: a. workaround b. activity-on-arrow c. decision tree d. backward pass

decision tree

Which risks are direct results of implementing risk responses? Answers: a. architectural b. residual c. primary d. secondary

secondary

Which technique is used to show the effects of changing one or more variables on an outcome? Answers: a. Monte Carlo analysis b. decision tree c. systems analysis d. sensitivity analysis

sensitivity analysis

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

False

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

False

Unknown risks can be managed proactively. Answers: True False

False

_____ is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks. Answers:a. An expectations management matrix b. A probability/impact matrix or chart c. A SharePoint portal d. Top Ten Risk Item Tracking

Top Ten Risk Item Tracking

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

True

_____ are unplanned responses to risk events used when project teams do not have contingency plans in place. Answers: a. Triggers b. Contingency plans c. Workarounds d. Fallback plans

Workarounds

The main outputs of which process include a risk register, risk report, and project documents updates? Answers: a. monitoring risk b. planning risk response c. identifying risks d. planning risk management

identifying risks

Which process involves determining what risks are likely to affect a project and documenting the characteristics of each? Answers: a. planning risk management b. performing quantitative risk analysis c. identifying risks d. performing qualitative risk analysis

identifying risks

Which is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions? Answers: a. the Delphi technique b. interviewing c. brainstorming d. Monte Carlo analysis

interviewing

Which process involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project? Answers: a. performing quantitative risk analysis b. monitoring risk c. planning risk responses d. performing qualitative risk analysis

monitoring risk

Which process involves prioritizing risks based on their probability and impact of occurrence? Answers: a. performing qualitative risk analysis b. performing quantitative risk analysis c. identifying risks d. planning risk responses

performing qualitative risk analysis

Which process involves prioritizing risks based on their probability of occurrence and impact? Answers: a. monitoring and controlling risks b. project closing c. performing qualitative risk analysis d. planning risk management

performing qualitative risk analysis

Identifying risks is a subprocess of the _____ process of project risk management. Answers: a. executing b. planning c. monitoring and controlling d. closing

planning

Identified risks may not materialize, or their probabilities of occurrence or loss may diminish. Answers: True False

True

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

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. Answers: True False

True

Which action involves allocating ownership of the risk to another party? Answers: a. risk sharing b. risk acceptance c. risk exploitation d. risk enhancement

risk sharing

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake. Answers: a. risk-seeking b. risk-averse c. risk-indifferent d. risk-neutral

risk-seeking