Questions on Risk Management

1. Which of the following statements are true regarding project risk management?

A – Risk monitoring and control involves tracking identified risks and executing risk response
B – Qualitative risk analysis involves numerically analysing the impacts of identified risks
C – Risk management planning involves determining which risks might affect the project
D – Risk identification involves how to plan and execute risk management activities

2. Which of the following is not covered in the process Control Risks?

A – Risk analysis of existing risks
B – Monitoring risk early warning triggers
C – Reviewing execution of risk responses
D – Quantifying the uncertainty in the project and its activities

3. Which of the following best describes a Secondary Risk?

A – A risk that still remains after implementing a response strategy
B – A risk that arises as a direct result of implementing a response strategy
C – A risk that could arise from implementing quality control activities
D – A risk that was identified by the QA team when carrying out a Quality Audit

4. Your project is to construct a new 18 hole championship golf course, featuring 12 sand bunkers, 4 pools, 1 lake, 15 places each having a minimum of 5 trees and long grass areas and one 7,500 yard par 72 course. It will also have a hotel and spa onsite with car parking spaces for 2,650 vehicles, in 2 nearby car parks and 10 overspill car parks further away.

It is intended to also provide an overnight stay and extended car parking for singles and couples going on holidays of up to 2 weeks. This will provide an additional income stream as the airport is only 18 miles away. Working to a tight deadline is the norm but after completing the schedule analysis you realise that the completion date you now estimate overruns the desired completion date by 2 months. After analysing the network diagram you have also determined that many of the project activities have discretionary dependencies.

This could potentially derail your project and you have requested extra resources to crash the project. But you have now been told that no extra resources are available and Just Do It/get it done. Knowing this is a low risk project, what is the best course of action?

A – Don’t bother identifying any more risks
B – Miss out all the smaller activities from your schedule
C – Look at ways that you can compress the schedule
D – Change the scope and quality of the deliverables to a level you know is achievable

5. A fellow PM has come to you for advice. She is managing a new strategically important project to introduce a new VOIP telephony and digital TV solution across her business, which has 52 sites in 17 countries and has required setting up a project team on each site. There are a number of critical dependencies, constraints and even some assumptions that she feels have not been fully tested.

She has just completed the process Sequence Activities for the fifth time and has identified she now has 39 critical paths and 15 near critical paths on the network diagram. What advice do you now give her about this situation?

A – The project will require greater co-ordination of resources and more of them
B – Project risk is high and will increase
C – Costs are already high and will go higher
D – There is no significant impact from so many critical and near critical paths

6. Which of the following best describes risks that arise as a direct implementation of implementing a risk response?

A – Secondary risks
B – Contingency risks
C – Tertiary risks
D – Residual risks

7. A risk impact scale was identified, specified and scale gradation meanings captured in the Risk Management Plan. The gradations were very low, low, moderate, high and very high. This scale is considered to be a?

A – Normal
B – Linear
C – Non Linear
D – Logarithmic

8. Which of the following best describes what a workaround is?

A – Workarounds are ways to mitigate risk using avoidance, transfer or risk mitigation
B – Workarounds are equivalent to corrective actions
C – Workarounds are unplanned responses to risks that were previously unidentified
D – Workarounds are result of implementing a risk response

9. Which is the following is not involved in the Control Risks process?

A – Choosing alternate strategies
B – Modifying the project management plan
C – Analysing risk data quality
D – Executing a contingency plan

10. You are a PM at Diablo Mobiles, a company developing mobile applications. You are currently in the Identify Risks process, where you are trying to identify and document all risk that might impact the project.

You have assembled your experts both from inside and outside the company. You have asked them to answer a questionnaire to identify the potential risks of the project. The experts will then mail back the questionnaire directly to you. Once you have received the feedback, you intend to organize the responses in order to compile a final list of potential project risks. Which of the following best describes the techniques are you using?

A – Normal group technique
B – Delphi technique
C – Assumption analysis
D – Brainstorming

11. Which statement is incorrect regarding sensitivity analysis?

A – Sensitivity analysis is a statistical concept that calculates the average outcome of project objectives under different assumptions and scenarios
B – Sensitivity analysis helps determine which risks have the most potential impact on the project
C – A tornado diagram is a display of sensitivity analysis
D – Sensitivity analysis examines how variation and uncertainty of individual project element impacts of project objective, assuming all other project elements are changed simultaneously

12. You are a project manager at Seaforth Inc, a utility company. Due to the recent rise in the cost of petroleum, the market demand for cheaper alternate forms of energy has grown exponentially. Seaforth Inc has identified a multi billion dollar market opportunity for alternate forms of energy.

However it does not have enough resources and expertise to exploit this market opportunity and has identified it needs to hire a team of scientists. It is now working with a recruiting firm to identify the qualified candidates. Which of the following best describes the type of strategy you are using to deal with this market opportunity?

A – Avoidance
B – Acceptance
C – Share
D – Exploit

13. Which statement is incorrect regarding simulation and Monte Carlo analysis?

A – For cost risk analysis, a simulation can use the project WBS or cost breakdown structure as its model
B – For schedule risk analysis, a simulation can use the PDM schedule as its model
C – Simulation is a technique that computes the project cost or schedule over multiple iterations using random values selected from distributions of possible costs or duration values and is a tool technique of qualitative risk analysis
D – Modeling and simulation are recommended for use in cost and risk analysis because they are more powerful and less subject to misuse than EMV analysis

14. Which statement describes a process which has Probability-impact matrix, risk data quality assessment, risk categorization, and risk urgency assessment as tool/ techniques?

A – Quantitative risk analysis
B – Risk response planning
C – Risk identification
D – Qualitative risk analysis

15. Poor allocation of time and resources and inadequate quality of the project plan should be classified in which of the following risk categories?

A – Project management risks
B – Technical risks
C – Organizational risks
D – External risks

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