3770 Ch.7 – Flashcards

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a A) Random chance B) Disaster C) Risk D) Hazard E) Bad luck

The chances of a risk event occurring as a project proceeds through its life cycle tend to A. Slowly rise. B. Drop sharply and then level out. C. Rise sharply and then level out. D. Remain about the same. E. Slowly drop.

The cost impact of a risk event occurring as a project proceeds through its life cycle tends to A) Slowly rise B) Drop sharply and then level out C) Rise sharply and then level out D) Remain about the same E) Slowly drop

The attempt to recognize and manage potential and unforeseen trouble spots that may occur when a project is implemented is known as A. Risk forecasting. B. Risk management. C. Contingency planning. D. Scenario analysis. E. Disaster protection.

Which of the following is NOT one of the steps in the risk management process? A. Risk response development B. Risk assessment C. Risk identification D. Risk tracking E. Risk response control

The initial step in the risk management process is to A. Determine the level of acceptable risk. B. Assess the risk potential. C. Identify the risks. D. Set aside budget funds for managing the risks. E. Appoint a risk manager.

One common mistake made early in the risk identification process is to A. Not consider all possibilities B. Encourage participants be over optimistic C. Support participants being over pessimistic D. Focus on consequences and not on the events that could produce consequences E. Give too much attention to past events

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk. A. Risk breakdown structures B. Contingency breakdown structures C. Scenario analysis D. Organizational breakdown structure E. Risk assessment

Which of the following groups should NOT be a part of the risk identification process? A) Project team B) Customers C) Subcontractors D) Vendors E) All of these groups can be included in the risk identification process

After your team has successfully identified potential risks that could affect the project, what is the next step? A. Create a risk breakdown structure B. Assess identified risks C. Create contingency plans D. Decide how to respond to all risks E. Mitigate risks

A list of questions that address traditional areas of uncertainty on a project is termed a A. Risk profile. B. Questionnaire. C. Research matrix. D. Query. E. Checklist.

_______________ focuses on how to respond to events that have a positive impact on a project. A. Risk management B. Opportunity management C. Value management D. Contingency management E. Prospect management

Tools such as a risk assessment form and a risk severity matrix are used to A. Identify risks. B. Control risks. C. Assess risks. D. Regulate risks. E. Respond to risks.

_____________ is a measure of how easy it would be to notice that a risk event was going to occur in time to take mitigating action, that is, how much warning you would have. A. Detection difficulty B. Impact scaling C. Probability analysis D. Awareness level E. Warning assessment

Purchasing an accident insurance policy would be an example of responding to a risk by _____________ it. A. Mitigating B. Retaining C. Ignoring D. Transferring E. Avoiding

The risk management tool that is divided into three color-coded zones representing major, moderate, and minor risks is the risk A) Assessment form B) Responsibility matrix C) Scenario assessment D) Impact assessment E) Severity matrix

The risk assessment form contains all of the following EXCEPT A. Likelihood of the risk event occurring. B. Potential impact of the risk event. C. Who will detect the occurrence of the risk event. D. Difficulty of detecting the occurrence of the risk event. E. When the risk event may occur.

Risks are evaluated in terms of A) Likelihood and cost B) Cost and schedule C) Impact and cost D) Time and impact E) Likelihood and impact

Adopting proven technology instead of experimental technology in order to eliminate technical failure would be an example of which risk response? A) Mitigating B) Retaining C) Ignoring D) Transferring E) Avoiding

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

Which of the following is NOT included in a Failure Mode and Effects Analysis? A. Impact B. Probability C. Detection D. Risk value E. All of these are included

A Fixed price contract is an example of ___________. A) Avoiding risk B) Transferring risk C) Accepting risk D) Ignoring risk E) Mitigating risk

Which of the following is NOT one of the potential responses to a specific risk event? A. Mitigating B. Retaining C. Ignoring D. Transferring E. Avoiding

A Risk Response Matrix contains all of the following EXCEPT A. Contingency plan. B. Trigger. C. Who is responsible. D. Response. E. When the risk will occur.

A key distinction between a risk response and a contingency plan is A. A risk response is established only for moderate risks while contingency plans are established for major risks. B. A risk response is part of the actual implementation plan and action is taken before the risk can materialize, while a contingency plan goes into effect only after the risk has transpired. C. A risk response is only effective when you are able to assess the likelihood of the risk and its impact on the project; all other risks are covered by contingency planning. D. A risk response is created by the project team and the project manager while the project manager and the customer agree on the contingency plan. E. A risk response is action that is the response to a risk once it has happened and the contingency plan is created by the customer if the risk response fails.

The risk associated with the unlikelihood that one of the key members will be struck by lightning would most likely be handled by which of the following? A) Mitigating B) Retaining C) Ignoring D) Transferring E) Avoiding

Funds that are for identified risks that have a low probability of occurring and that decrease as the project progresses are called ______ reserves. A) Management B) Budget C) Contingency D) Padded E) Just in case

Risks that can result in a system or process that will not work are known as A. Technical risks. B. Funding risks. C. Schedule risks. D. Cost risks. E. Unnecessary risks.

Which of the following is NOT involved in risk control? A) Executing the risk response strategy B) Initiating contingency plans C) Establishing a change control system D) Establishing contingency funds E) Watching for new risks

Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project? A. Project reserves B. Management reserves C. Time buffers D. Activity reserves E. Budget reserves

Change management systems are designed to accomplish all of the following EXCEPT A) Track all changes that are to be implemented B) Review, evaluate, and approve/disapprove proposed changes formally C) Identify expected effects of proposed changes on schedule and budget D) Reflect scope changes in baseline and performance measures E) All of these are examples of what change management systems are designed to accomplish.