Questions and Answers Project Risk Management

1. Which of the following processes is not included in Project Risk Management? A) Risk identification B) ualitati!e Risk Anal"sis #) Risk $uantification %) Risk response planning %ecision trees are used to A) Plan where to plant shru's on the project B) #alculate the pro'a'ilit" of an outcome #) %etermine what e!ents ma" take place %) (!aluate a decision Risk tolerances are determined to A) *elp the team rank the project risks B) *elp the project manager estimate project #) *elp the team schedule the project %) *elp management know how other managers will act on the project Which of the following documents outlines the action steps to 'e taken if an identified risk e!ent occurs? A) Risk management plan B) Project plan #) #orrecti!e action plan %) Risk response plan Which of following is not an input to the risk management planning? A) Project #harter B) lessons learned #) work 'reakdown structure %) %efined Roles and Responsi'ilities .f a project has a -/0 chance of a 12 31//4/// profit and a +/0 chance of a 12 31//4/// loss4 the e5pected monetar" !alue of the project is A) 12 31//4/// profit B) 12 3-/4/// loss #) 12 3&/4/// profit %) 12 3+/4/// loss 7ou ha!e just 'een assigned as the project manager for a si8ea'le engineering project and "ou want to $uickl" re!iew the project9s procedures for managing risk throughout the project. Which of the following plans will help "ou the most in finding the information? A) A risk identification plan B) A risk management plan #) A risk anal"sis plan %) A Monte #arlo simulation

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:A ; Project Risk Management

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=he project Manager has worked with the team to come up with contingenc" plans. 2uch plans are A) Planned responses to risk e!ents B) 1nplanned responses to scope #) Workarounds %) Planned responses to pro'a'ilit" anal"sis A project manager is in the process of de!eloping options and determining actions. Which of the following step of risk management is the project manager in? A) Risk identification B) uantitati!e risk anal"sis #) Risk response planning %) Risk monitoring and control

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1/. %uring the implementation phase of a new s"stems project4 a fire erupts during hardware installation causing damage to the facilit". =his is an e5ample of A) 1npredicta'le risk B) (5ternal risk #) Business risk %) .nsura'le ?pure) risk 11. Which of the following scheduling techni$ues incorporates a form of risk assessment? A) Arrow diagramming method B) Precedence diagramming #) #ritical path method %) Program e!aluation and re!iew techni$ue 1&. 7ou are finding it difficult to e!aluate the e5act cost impact of risks4 "ou should A) (!aluate on a $uantitati!e 'asis B) (!aluate on a numerical 'asis #) (!aluate on a $ualitati!e 'asis %) %o not e!aluate the costs at all 1). %e!eloping alternati!e acti!it" se$uences is an e5ample of A) Risk transfer B) Risk a!ersion #) Risk identification %) #ontingenc" planning 1+. A contractor estimates that a project has /., pro'a'ilit" of 3&//4/// profit4 /.) pro'a'ilit" of 3,/4/// loss4 and /.& pro'a'ilit" of 'reak@e!en. =he e5pected monetar" !alue of his project is A) 3&//4/// B) A31,/4/// #) 3<,4/// %) 3,/4/// 1,. .f a risk has a &/0 chance of happening in an" gi!en month4 and if the project is e5pected to last , months4 the pro'a'ilit" that this risk e!ent will occur during the last month of the project is A) &/0 B) +/0 #) -/0 %) 1//0 1-. What should 'e done with non@critical risks?

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:A ; Project Risk Management

A) .gnore them4 the" are not critical enough to include in risk response de!elopment document them and re!isit during project e5ecution B) %ocument them and re!isit during project e5ecution #) .gnore them4 the" are alread" taken care of in "our contingenc" plans %) %ocument them so that the" can 'e gi!en to the customer 16. Which of the following risk e!ents is most likel" to interfere with the attainment of the project9s schedule o'jecti!e? A) %ela"s in o'taining re$uired appro!als B) 2u'stantial increases in the cost of purchased materials #) #ontract disputes that generate claims for increased pa"ments %) 2lippage of the planned post@implementation re!iew meeting 1<. Which of the following is not a factor in the assessment of project risks? A) Risk e!ent B) Risk pro'a'ilit" #) Amount at stake %) .nsurance premiums 1>. .f a risk e!ent has a >/0 chance of occurring4 and the impact will 'e 12 1/4///4 what does 12 3>4/// represent? A) Risk !alue B) Present !alue #) (5pected !alue %) #ontingenc" 'udget &/. Morgan and Richard are in the middle of estimating pro'a'ilities for each of their identified risks. Which step of risk management must the" 'e in? A) Risk identification B) uantitati!e risk anal"sis #) Risk response planning %) Risk response monitoring and control &1. Which is not input to Risk .dentification? A) Risk categories B) Project planning outputs #) Risk management plan %) #hecklists &&. An A) B) #) %) output from risk response planning is Risk response plan4 contracts and contingenc" reser!e amounts Risks identified4 risk response plan and a control plan #ontrol plan4 impacts and a risk management plan Risk management plan4 impacts identified and contracts

&). A determination of risk mitigation strategies takes place during which step of risk management A) Risk identification B) ualitati!e risk anal"sis #) Risk response planning %) Risk monitoring and control &+. %uring project e5ecution4 a team mem'er identifies a risk that is not in the risk management plan4 "ou should A) Anal"8e the risk B) .gnore the risk 'ecause "ou alread" performed a detailed anal"sis

:A ; Project Risk Management

#) .gnore the risk 'ecause risks were identified during planning %) =ell the customer a'out the risk &,. Purchasing insurance is an e5ample of A) Risk mitigation B) Risk transference #) Risk acceptance %) Risk a!oidance &-. .n the range of contract t"pes4 from Airm@Ai5ed Price ?AAP) to #ost Plus Ai5ed Aee ?#PAA)4 where is the risk the greatest for the 'u"er? A) Airm fi5ed price B) Ai5ed price incenti!e firm target #) #ost plus fi5ed fee %) #ost plus award fee &6. %uring the project4 a team mem'er tells "ou that a major risk the team identified has occurred 'ut is not as serious as pre!iousl" thought. What is the first thing "ou should do? A) .ncrease the $ualit" standard B) =hank the team mem'er and continue following "our communication plan #) .n!estigate changing the contingenc" plan %) Botif" management &<. Ci!en the following possi'le profit and loss outcomes of a project4 find the e5pected total profit or ?loss)D Profit or (Loss) ?31///) 3/ 314/// 3&4/// A) B) #) %) ?314///) 314/// 3&4/// 314&// data in the ta'le 'elow4 which strateg" has the highest e5pected !alue? 2cenario 1 2cenario & 2cenario ) </ ,/ 1&/ </ </ </ 1-/ 1&/ &/ &/ +/ @&/ @&/ / @-/ Probability /.1 /.1 /.) /.,

&>. Based on the 2trateg" 21 2& 2) 2+ 2, A) B) #) %) 21 2& 2) 2+

)/. =ools and techni$ues for risk identification include all 'ut A) #hecklists B) Risk assessment

:A ; Project Risk Management

#) Alowcharting %) .nter!iewing

Answers Project Risk Management

Q.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Ans C D A D B C B A C D D C D C A B A D C B D A C A B C C D C B