Question 1

________ reserves are identified for specific work packages and are distributed by the project manager and the team members.

Accepted Answer

A)   Incremental
B)   Contingency
C)   Additional
D)   Work package
E)   IncidentalF) A) and B)
G) A) and C)

Question 2

Why might an organization be opposed to developing and implementing a thorough risk management process?

Accepted Answer

Managing risk takes time and money, whic...

Question 3

The lowest risk value that an identified risk can take is ________, while the highest risk value that an identified risk can take is ______.

Accepted Answer

A)   1, 125
B)   0, 1 × 10 to the 300 power
C)   1, 25
D)   0, 5
E)   1, 5F) A) and B)
G) A) and C) A

Question 4

According to the Failure Mode and Effects Analysis (FMEA) , Impact × Probability × Detection = __________.

Accepted Answer

A)   risk severity
B)   risk assessment
C)   risk value
D)   risk mitigation
E)   risk difficultyF) A) and E)
G) All of the above

Question 5

Which of the following activities might you consider adding a time buffer to?

Accepted Answer

A)   Activities with severe risks
B)   Merge activities that are prone to delays
C)   Activities with scarce resources
D)   Noncritical activities with very little slack
E)   You might consider adding a time buffer to any of these activities.F) B) and E)
G) B) and D)

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Based on the following, which event should you be most concerned about?

Accepted Answer

A)   Bad weather
B)   Design flaw
C)   Accident
D)   Shipment delay
E)   Power outageF) A) and E)
G) C) and D) B

Question 8

Give a real-life example of mitigating a risk, avoiding a risk, transferring a risk, escalating a risk and retaining a risk.

Accepted Answer

Mitigating a risk: duplicate systems, ba...

Question 9

The implications of an identified change need to be assessed by

Accepted Answer

A)   the primary project stakeholder.
B)   the chief fiscal officer.
C)   a person with expertise related to the change.
D)   the authorizing project manager.
E)   the program manager.F) B) and C)
G) A) and D) C

Question 10

What is the purpose of using tools such as a risk assessment form and a risk severity matrix?

Accepted Answer

These tools are used to assess risk. Aft...

Question 11

Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.

Accepted Answer

A)   transferring
B)   escalating
C)   avoiding
D)   retaining
E)   mitigatingF) A) and D)
G) B) and D)

Question 12

What is the difference between mitigating a risk and a contingency plan? Provide real life examples that illustrate the difference.

Accepted Answer

The key distinction between a risk respo...

Question 13

When considering risk value, the lower the value, the higher the level of risk.

Accepted Answer

A) True 
 B)False

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.

Accepted Answer

A)   management
B)   unidentified risk
C)   contingency
D)   padded
E)   just in caseF) B) and D)
G) B) and C)

Question 16

List the major response choices for negative risks. Do the same for positive risks (opportunities).

Accepted Answer

Negative risk choices: mitigat...

Question 17

Opportunities identified within a project are treated very different from risks.

Accepted Answer

A) True 
 B)False

Question 18

When considering risk management, what is an opportunity? List and briefly describe 5 different responses to an opportunity.

Accepted Answer

An opportunity is an event that can have...

Question 19

After your team has successfully identified potential risks that could affect the project, what is the next step?

Accepted Answer

A)   Create a risk breakdown structure
B)   Assess identified risks
C)   Create contingency plans
D)   Decide how to respond to all risks
E)   Mitigate risksF) A) and B)
G) A) and C)

Question 20

Identify and briefly describe the five ways to respond to identified risks.

Accepted Answer

Escalating risk occurs when th...

Exam 7: Managing Risk

________ reserves are identified for specific work packages and are distributed by the project manager and the team members.

Correct AnswerverifiedShow Answer

Why might an organization be opposed to developing and implementing a thorough risk management process?

Correct AnswerverifiedManaging risk takes time and money, whic...View AnswerShow Answer

The lowest risk value that an identified risk can take is ________, while the highest risk value that an identified risk can take is ______.

Correct AnswerverifiedA

According to the Failure Mode and Effects Analysis (FMEA) , Impact × Probability × Detection = __________.

Correct AnswerverifiedShow Answer

Which of the following activities might you consider adding a time buffer to?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Based on the following, which event should you be most concerned about?

Correct AnswerverifiedB

Give a real-life example of mitigating a risk, avoiding a risk, transferring a risk, escalating a risk and retaining a risk.

Correct AnswerverifiedMitigating a risk: duplicate systems, ba...View AnswerShow Answer

The implications of an identified change need to be assessed by

Correct AnswerverifiedC

What is the purpose of using tools such as a risk assessment form and a risk severity matrix?

Correct AnswerverifiedThese tools are used to assess risk. Aft...View AnswerShow Answer

Testing a new project on a smaller isolated area prior to installing it for the entire organization is an example of ________ a risk.

Correct AnswerverifiedShow Answer

What is the difference between mitigating a risk and a contingency plan? Provide real life examples that illustrate the difference.

Correct AnswerverifiedThe key distinction between a risk respo...View AnswerShow Answer

When considering risk value, the lower the value, the higher the level of risk.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves.

Correct AnswerverifiedShow Answer

List the major response choices for negative risks. Do the same for positive risks (opportunities).

Correct AnswerverifiedNegative risk choices: mitigat...View AnswerShow Answer

Opportunities identified within a project are treated very different from risks.

Correct AnswerverifiedShow Answer

When considering risk management, what is an opportunity? List and briefly describe 5 different responses to an opportunity.

Correct AnswerverifiedAn opportunity is an event that can have...View AnswerShow Answer

After your team has successfully identified potential risks that could affect the project, what is the next step?

Correct AnswerverifiedShow Answer

Identify and briefly describe the five ways to respond to identified risks.

Correct AnswerverifiedEscalating risk occurs when th...View AnswerShow Answer

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Managing risk takes time and money, whic...
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The lowest risk value that an identified risk can take is __, while the highest risk value that an identified risk can take is .

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A

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B

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Mitigating a risk: duplicate systems, ba...
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C

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These tools are used to assess risk. Aft...
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The key distinction between a risk respo...
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Negative risk choices: mitigat...
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An opportunity is an event that can have...
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Correct Answer
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Correct Answer
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Escalating risk occurs when th...
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