Question 1

The risk identification process should be limited to just the core project team.

Accepted Answer

A) True 
 B)False

Question 2

When considering risk response development,assuming the risk because the chance of such an event is slim is known as _________ the risk.

Accepted Answer

retaining
Explanation: Some risks are so...

Question 3

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk.

Accepted Answer

A)   Risk breakdown structures
B)   Contingency breakdown structures
C)   Scenario analysis
D)   Organizational breakdown structure
E)   Risk assessment

Question 4

Change management systems involve reporting,controlling,and recording changes to the project baseline.

Accepted Answer

A) True 
 B)False

Question 5

_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action,that is,how much warning you would have.

Accepted Answer

A)   Detection difficulty
B)   Impact scaling
C)   Probability analysis
D)   Awareness level
E)   Warning assessment

Question 6

A list of questions that address traditional areas of uncertainty on a project is termed a

Accepted Answer

A)   Risk profile.
B)   Questionnaire.
C)   Research matrix.
D)   Query.
E)   Checklist.

Question 7

A key distinction between a risk response and a contingency plan is

Accepted Answer

A)   A risk response is established only for moderate risks while contingency plans are established for major risks.
B)   A risk response is part of the actual implementation plan and action is taken before the risk can materialize,while a contingency plan goes into effect only after the risk has transpired.
C)   A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project;all other risks are covered by contingency planning.
D)   A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan.
E)   A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails.

Question 8

The first step in the risk management process is risk assessment.

Accepted Answer

A) True 
 B)False

Question 9

The initial step in the risk management process is to

Accepted Answer

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.

Question 10

When developing a response to a risk by scheduling outdoor work in the summer,investing in up-front safety training,or choosing high-quality materials,these are examples of retaining a risk.

Accepted Answer

A) True 
 B)False

Question 11

Responses to all identifiable risks should be a top priority for the project manager.

Accepted Answer

A) True 
 B)False

Question 12

A risk is an uncertain event that,if it occurs,can have a positive or negative effect on project objectives.

Accepted Answer

A) True 
 B)False

Question 13

When considering risk management,what is an opportunity? List and briefly describe 4 different responses to an opportunity.

Accepted Answer

The answer of When considering risk management,what is an opportunity?...

Question 14

When considering risk response development,reducing the likelihood that an event will occur and/or reducing the impact that an adverse event would have on a project is known as _________ the risk.

Accepted Answer

mitigating
Explanation: Reducing risk is...

Question 15

Which of the following is NOT involved in risk control?

Accepted Answer

A)   Executing the risk response strategy
B)   Initiating contingency plans
C)   Establishing a change control system
D)   Establishing contingency funds
E)   Watching for new risks

Question 16

The measurement of how easy it would be to detect that the event was going to occur in time to take mitigating action is known as __________.

Accepted Answer

detection difficulty
Explanation: Detect...

Question 17

The risk management tool that is divided into three color-coded zones representing major,moderate,and minor risks is the risk

Accepted Answer

A)   Assessment form.
B)   Responsibility matrix.
C)   Scenario assessment.
D)   Impact assessment.
E)   Severity matrix.

Question 18

A fixed price contract is an example of

Accepted Answer

A)   Avoiding risk.
B)   Transferring risk.
C)   Accepting risk.
D)   Ignoring risk.
E)   Mitigating risk.

Question 19

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it.

Accepted Answer

A)   Mitigating
B)   Retaining
C)   Ignoring
D)   Transferring
E)   Avoiding

Question 20

One common mistake made early in the risk identification process is to

Accepted Answer

A)   Not consider all possibilities
B)   Encourage participants be over optimistic
C)   Support participants being over pessimistic
D)   Focus on consequences and not on the events that could produce consequences
E)   Give too much attention to past events

Exam 7: Managing Risk

The first step in the risk management process is risk assessment.

Correct AnswerverifiedShow Answer

A list of questions that address traditional areas of uncertainty on a project is termed a

Correct AnswerverifiedShow Answer

A fixed price contract is an example of

Correct AnswerverifiedShow Answer

Which of the following is NOT involved in risk control?

Correct AnswerverifiedShow Answer

A key distinction between a risk response and a contingency plan is

Correct AnswerverifiedShow Answer

_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action,that is,how much warning you would have.

Correct AnswerverifiedShow Answer

When developing a response to a risk by scheduling outdoor work in the summer,investing in up-front safety training,or choosing high-quality materials,these are examples of retaining a risk.

Correct AnswerverifiedShow Answer

Responses to all identifiable risks should be a top priority for the project manager.

Correct AnswerverifiedShow Answer

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk.

Correct AnswerverifiedShow Answer

When considering risk response development,reducing the likelihood that an event will occur and/or reducing the impact that an adverse event would have on a project is known as _________ the risk.

Correct AnswerverifiedmitigatingExplanation: Reducing risk is...View AnswerShow Answer

Change management systems involve reporting,controlling,and recording changes to the project baseline.

Correct AnswerverifiedShow Answer

The risk management tool that is divided into three color-coded zones representing major,moderate,and minor risks is the risk

Correct AnswerverifiedShow Answer

The risk identification process should be limited to just the core project team.

Correct AnswerverifiedShow Answer

The initial step in the risk management process is to

Correct AnswerverifiedShow Answer

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it.

Correct AnswerverifiedShow Answer

When considering risk response development,assuming the risk because the chance of such an event is slim is known as _________ the risk.

Correct AnswerverifiedretainingExplanation: Some risks are so...View AnswerShow Answer

One common mistake made early in the risk identification process is to

Correct AnswerverifiedShow Answer

When considering risk management,what is an opportunity? List and briefly describe 4 different responses to an opportunity.

Correct AnswerverifiedShow Answer

The measurement of how easy it would be to detect that the event was going to occur in time to take mitigating action is known as __________.

Correct Answerverifieddetection difficultyExplanation: Detect...View AnswerShow Answer

A risk is an uncertain event that,if it occurs,can have a positive or negative effect on project objectives.

Correct AnswerverifiedShow Answer

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mitigating
Explanation: Reducing risk is...
View Answer

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retaining
Explanation: Some risks are so...
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detection difficulty
Explanation: Detect...
View Answer

Correct Answer
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