Ch11 – Project Management Flashcards

question

Risk utility rises at a decreasing rate for a _____ person. risk seeking, risk averse, risk neutral, risk indifferent
answer

Risk averse
question

Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake. risk seeking, risk averse, risk neutral, risk indifferent
answer

risk seeking
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A _____ person achieves a balance between risk and payoff. risk seeking, risk averse, risk neutral, risk indifferent
answer

risk neutral
question

_____ involves deciding how to approach and plan the risk management activities for the project. identifying risks, planning risk management, performing qualitative risk analysis, performing quantitative risk analysis
answer

planning risk management
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____ involves determining which risks are likely to affect a project and documenting the characteristics of each. identifying risks, planning risk management, performing qualitative risk analysis, performing quantitative risk analysis
answer

identifying risks
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_____ involves prioritizing risks based on their probability and impact of occurrence. performing qualitative risk analysis, identifying risks, planning risk responses, performing quantitative risk analysis
answer

performing qualitative risk analysis
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_____ involves numerically estimating the effects of risks on project objectives. performing qualitative risk analysis, planning risk responses, id risks, performing quantitative risk analysis
answer

performing quantitative risk analysis
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___ involves taking steps to enhance opportunities and reduce threats to meeting project objectives. performing quantitative risk analysis, planning risk responses, controlling risk, performing qualitative risk analysis
answer

planning risk responses
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____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the project. performing quantitative risk analysis, planning risk responses, controlling risk, performing qualitative risk analysis
answer

controlling risk
question

Identifying risks is a subprocess of the _____ process of project risk management. planning, monitoring and controlling , executing, closing
answer

planning
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Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk management. planning, executing monitoring/controlling, closing
answer

planning
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_____ are predefined actions that the project team will take if an identified risk event occurs. secondary risks, workarounds, contingency plans, management reserves
answer

contingency plans
question

Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project _____ management knowledge area. integration, quality, procurement, human resources
answer

procurement
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_____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions. brainstorming, monte carlo, delphi technique, interviewing
answer

interviewing
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A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other. risk breakdown structure, influence diagram, process flow chart, work break down structure
answer

influence diagram
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The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring. top ten risk item tracking chart, requirements traceability matrix, probability impact matrix, expectations management matrix
answer

probability/impact matrix
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_____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in addition to identifying risks. sharepoint portal, probability impact matrices or charts, expectations management matrix, top ten risk item tracking
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top ten risk item tracking
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A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain. decision tree, activity on arrow, workaround, backward pass
answer

decision tree
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_____ analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results. sensitivity, systems, monte carlo, npv
answer

monte carlo
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What is the first step in a Monte Carlo analysis? determine the probability distribution of each variable, for each variable such as time estimate for each select a random value, assess the range for the variables being considered, run a deterministic analysis or one pass through the model using the combination of values selected
answer

access the range for the variables being considered
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A _____ is a technique used to show the effects of changing one or more variables on an outcome. sensitivity analysis, decision tree, monte carlo analysis, systems analysis
answer

sensitivity analysis
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___ involves eliminating a specific threat, usually by eliminating its causes. risk avoidance, risk acceptance, risk mitigation, risk transference
answer

risk avoidance
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_____ involves shifting the consequence of a risk and responsibility for its management to a third party. risk avoidance, risk acceptance, risk mitigation, risk transference
answer

risk transference
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_____ involves reducing the impact of a risk event by reducing the probability of its occurrence. risk avoidance, risk acceptance, risk mitigation, risk transference
answer

risk mitigation
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_____ involves doing whatever you can to make sure the positive risk happens. risk exploitation risk sharing risk enhancement risk acceptance
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risk exploitation
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_____ involves allocating ownership of the risk to another party. risk exploitation risk sharing risk enhancement risk acceptance
answer

risk sharing
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_____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk. risk exploitation risk sharing risk enhancement risk acceptance
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risk enhancement
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_____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk. risk enhancement, risk acceptance, risk sharing, risk exploitation
answer

risk acceptance
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_____ risks refer to those that are direct results of implementing risk responses. architectural, residual, primary , secondary
answer

secondary
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_____ are unplanned responses to risk events used when project teams do not have contingency plans in place. workarounds, fallback plans, contingency plans, triggers
answer

work arounds

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