Question 1

The tasks of reviewing and refining the manner in which we have classified risks for the project, determining if there are commonalities across the various risks we have uncovered are performed in the __________ of the project risk analysis and management model.

Accepted Answer

A)   structure step
B)   ownership step
C)   define step
D)   plan stepE) A) and D)
F) B) and C) A

Question 2

An agreement between two firms that has provisions for fixed costs or liquidated damages contains an element of __________

Accepted Answer

contractua...

Question 3

Project risk is highest during the:

Accepted Answer

A)   termination stage of the project life cycle.
B)   concept stage of the project life cycle.
C)   implementation stage of the project life cycle.
D)   development stage of the project life cycle.E) A) and C)
F) A) and B)

Question 4

The probability that project revenues will not be sufficient to repay the debts is:

Accepted Answer

A)   financial risk
B)   cost estimate risk.
C)   market risk.
D)   promotion risk.E) B) and C)
F) A) and D)

Question 5

Use the failure probability and consequence scores shown in the table to determine the overall risk factor for the project. Based on your analysis, the overall project has a:

Accepted Answer

A)   low risk.
B)   medium risk.
C)   high risk.
D)   unacceptable risk.E) None of the above
F) A) and B)

Question 6

Risk management is a:

Accepted Answer

A)   three-stage process.
B)   four-stage process.
C)   five-stage process.
D)   six-stage process.E) B) and D)
F) All of the above

Question 7

A project team assesses their primary risk factor's probability of failure with a maturity risk of 0.2, a complexity risk of 0.6, and a dependency risk of 0.9. The probability of failure is:

Accepted Answer

A)   less than or equal to 0.3.
B)   greater than 0.3 but less than or equal to 0.6.
C)   greater than 0.6 but less than or equal to 0.9.
D)   greater than 0.9.E) A) and B)
F) A) and C) B

Question 8

Which of these statements about the project risk analysis and management program is best?

Accepted Answer

A)   Risk management is integrated throughout the project's life cycle.
B)   The risk management strategy should be unwavering throughout the entire project life cycle.
C)   The project manager should choose a small subset of all risk management tools.
D)   Risk management is best handled using an ad hoc approach.E) None of the above
F) A) and B)

Question 9

A rule of thumb for project risk score calculations is that a risk score of __________ is considered high risk.

Accepted Answer

The answer of A rule of thumb for project risk...

Question 10

The terpsichorean was familiar with the risks associated with various moves, the accountant knew financial risks forwards and backwards, while the civil engineer could quantify the risks associated with distributed loads on the temporary stage. Their input was used as part of:

Accepted Answer

A)   a brainstorming meeting approach to risk factor identification.
B)   the Delphi method approach to risk factor identification.
C)   a past history approach to risk factor identification.
D)   a multiple assessments approach to risk factor identification.E) B) and C)
F) A) and C)

Question 11

Project risk is lowest during the:

Accepted Answer

A)   concept stage of the project life cycle.
B)   implementation stage of the project life cycle.
C)   termination stage of the project life cycle.
D)   development stage of the project life cycle.E) None of the above
F) A) and B)

Question 12

Risk cannot be transferred because ultimately your own project will suffer the consequences if the event occurs.

Accepted Answer

A) True 
 B)False

Question 13

With a maturity risk of 0.3, a complexity risk of 0.2, and a dependency risk of 0.2, the probability of failure is:

Accepted Answer

A)   about 0.23.
B)   about 0.7.
C)   about 0.012.
D)   about 0.45.E) B) and C)
F) A) and D) A

Question 14

The consequences of failure categories of cost, schedule, reliability, and performance were believed to be 0.2, 0.6, 0.5, and 0.7. What is the overall consequence of failure?

Accepted Answer

A)   0.2
B)   0.3
C)   0.4
D)   0.5E) C) and D)
F) A) and B)

Question 15

Based on the projected selling price of $20 per unit, the manufacturer invested a substantial portion of its available cash in a machine that could produce twenty-thousand gumballs in an hour. If consumers weren't willing to pay this much for gum, then the manufacturer faced significant:

Accepted Answer

A)   financial risk.
B)   promotion risk.
C)   cost estimate risk.
D)   market risk.E) None of the above
F) B) and D)

Question 16

The act of pairing a junior project team member with a senior manager in order to help the junior team member to learn best practices is known as:

Accepted Answer

A)   mentoring.
B)   cross-training.
C)   supervising.
D)   interning.E) B) and C)
F) All of the above

Question 17

What does change management accomplish and what are the components of an effective change management program?

Accepted Answer

Change management is a part of a risk mi...

Question 18

Use the failure probability and consequence scores shown in the table to determine the consequence of failure for the project.

Accepted Answer

A)   greater than 0.6
B)   less than or equal to 0.6 but greater than 0.4
C)   less than or equal to 0.4 but greater than 0.2
D)   less than 0.2E) A) and C)
F) All of the above

Question 19

The first step in the risk management process is __________.

Accepted Answer

(risk) ide...

Question 20

The firm set aside a little extra money just in case an unforeseen element of cost pushed the project beyond what they had budgeted. This extra money is called:

Accepted Answer

A)   a rainy day fund.
B)   a contingency reserve.
C)   an escalation clause.
D)   a sinking fund.E) B) and C)
F) A) and B)

Exam 7: Risk Management

The tasks of reviewing and refining the manner in which we have classified risks for the project, determining if there are commonalities across the various risks we have uncovered are performed in the __________ of the project risk analysis and management model.

Correct AnswerverifiedA

An agreement between two firms that has provisions for fixed costs or liquidated damages contains an element of __________

Correct Answerverifiedcontractua...View AnswerShow Answer

Project risk is highest during the:

Correct AnswerverifiedShow Answer

The probability that project revenues will not be sufficient to repay the debts is:

Correct AnswerverifiedShow Answer

Use the failure probability and consequence scores shown in the table to determine the overall risk factor for the project. Based on your analysis, the overall project has a:

Correct AnswerverifiedShow Answer

Risk management is a:

Correct AnswerverifiedShow Answer

A project team assesses their primary risk factor's probability of failure with a maturity risk of 0.2, a complexity risk of 0.6, and a dependency risk of 0.9. The probability of failure is:

Correct AnswerverifiedB

Which of these statements about the project risk analysis and management program is best?

Correct AnswerverifiedShow Answer

A rule of thumb for project risk score calculations is that a risk score of __________ is considered high risk.

Correct AnswerverifiedShow Answer

The terpsichorean was familiar with the risks associated with various moves, the accountant knew financial risks forwards and backwards, while the civil engineer could quantify the risks associated with distributed loads on the temporary stage. Their input was used as part of:

Correct AnswerverifiedShow Answer

Project risk is lowest during the:

Correct AnswerverifiedShow Answer

Risk cannot be transferred because ultimately your own project will suffer the consequences if the event occurs.

Correct AnswerverifiedShow Answer

With a maturity risk of 0.3, a complexity risk of 0.2, and a dependency risk of 0.2, the probability of failure is:

Correct AnswerverifiedA

The consequences of failure categories of cost, schedule, reliability, and performance were believed to be 0.2, 0.6, 0.5, and 0.7. What is the overall consequence of failure?

Correct AnswerverifiedShow Answer

Based on the projected selling price of $20 per unit, the manufacturer invested a substantial portion of its available cash in a machine that could produce twenty-thousand gumballs in an hour. If consumers weren't willing to pay this much for gum, then the manufacturer faced significant:

Correct AnswerverifiedShow Answer

The act of pairing a junior project team member with a senior manager in order to help the junior team member to learn best practices is known as:

Correct AnswerverifiedShow Answer

What does change management accomplish and what are the components of an effective change management program?

Correct AnswerverifiedChange management is a part of a risk mi...View AnswerShow Answer

Use the failure probability and consequence scores shown in the table to determine the consequence of failure for the project.

Correct AnswerverifiedShow Answer

The first step in the risk management process is __________.

Correct Answerverified(risk) ide...View AnswerShow Answer

The firm set aside a little extra money just in case an unforeseen element of cost pushed the project beyond what they had budgeted. This extra money is called:

Correct AnswerverifiedShow Answer

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A

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contractua...
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A

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Change management is a part of a risk mi...
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