Week 5

1. Project Risk = ______________× Consequences of Event?

a. Loss
b. Probability of Event
c. Outcomes of event
d. None of the above

2. Arrange the following as per the stages of Risk Management?

A. Analysis of probability and consequences

B. Risk identification: determine specific risk factors

C. Control and documentation

D. Risk mitigation strategies

a. A-C-D-B
b. B-A-D-C
c. B-D-A-C
d. B-A-C-D

3. Delphi method is based on?

a. Historical data
b. Expert opinion
c. Future prediction
d. Financial analysis

4. PRAM Stands for?

a. Project Risk Aversion and Management

b. Project Analysis and Management
c. Project Risk Analysis and Management
d. Project Risk Allocation and Management

5. Choose the odd one?

a. Sensitivity Analysis
b. Breakeven Analysis
c. Hiller Model
d. Corporate Risk analysis

6. Choose the wrong statement?

a. Competitive risk: Earning and cash flows down.

b. International risk: In case of foreign projects.
c. Market risk: Changes in microeconomic factors.
d. Firm risk: Risk of a project in context of firm.
7. Hiller Model can be used for?

a. Continuous probabilistic events

b. Discontinuous probabilistic events
c. Non- Probabilistic events
d. Both A and B

8. __________________ is a tool for analyzing situations where sequential decision making in face of
risk is involved?

a. Simulation Analysis
b. Scenario Analysis
c. Decision tree Analysis
d. Hiller Model

9. ________________examine and document the effectiveness of risk responses in dealing

with identified risks and their root causes?

a. Risk analysis
b. Risk audits
c. Risk mitigation
d. None of the above

10. Choose the odd one with respect to PRAM?

a. Risk management follows a life cycle

b. Risk management strategy changes over the project life cycle
c. Risk audit is mandatory
d. Synthesized, coherent approach, tools of RM to be used as they are needed.