SPM Chapter 11 Flashcards
64 test answers
Unlock all answers in this set
Unlock answers 64question
KLCI Research Group's 2001 survey revealed that the most frequently cited benefit from software risk management practices is to ____.
answer
anticipate/avoid problems
Unlock the answer
question
Utility rises at a decreasing rate for a ____ person.
answer
risk-averse
Unlock the answer
question
Those who are ____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
answer
risk-seeking
Unlock the answer
question
A ____ person achieves a balance between risk and payoff.
answer
risk-neutral
Unlock the answer
question
There are ____ major processes involved in risk management.
answer
six
Unlock the answer
question
____ involves deciding how to approach and plan the risk management activities for the project.
answer
Planning risk management
Unlock the answer
question
____ involves determining which risks are likely to affect a project and documenting the characteristics of each.
answer
Identifying risks
Unlock the answer
question
____ involves prioritizing risks based on their probability and impact of occurrence.
answer
Performing qualitative risk analysis
Unlock the answer
question
____ involves numerically estimating the effects of risks on project objectives.
answer
Performing quantitative risk analysis
Unlock the answer
question
____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.
answer
Planning risk responses
Unlock the answer
question
____ 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.
answer
Monitoring and controlling risk
Unlock the answer
question
____ are predefined actions that the project team will take if an identified risk event occurs.
answer
Contingency plans
Unlock the answer
question
____ are developed for risks that have a high impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective.
answer
Fallback plans
Unlock the answer
question
According to the Standish Group's success potential scoring sheet, ____ has the highest relative importance.
answer
user involvement
Unlock the answer
question
"If the information technology project is to produce a new product or service, will it be useful to the organization or marketable to others?" applies to which risk category? ____
answer
Market risk
Unlock the answer
question
"Will the project meet NPV, ROI, and payback estimates?" applies to which risk category? ____
answer
Financial risk
Unlock the answer
question
"Is there a project champion?" applies to which risk category? ____
answer
People risk
Unlock the answer
question
In a risk breakdown structure, competitors, suppliers, and cash flow are categories that fall under ____ risk.
answer
business
Unlock the answer
question
Poor conflict management, poor project organization and definition of responsibilities, and absence of leadership are risk conditions associated with the ____ project management knowledge area.
answer
Human Resources
Unlock the answer
question
Unenforceable conditions or contract clauses, and adversarial relations are risk conditions associated with the ____ project management knowledge area.
answer
Procurement
Unlock the answer
question
____ is a fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions.
answer
Interviewing
Unlock the answer
question
A(n) ____ represents decision problems by displaying essential elements, including decisions, uncertainties, causality, and objectives, and how they influence each other.
answer
influence diagram
Unlock the answer
question
A project manager can chart the probability and impact of risks on a ____.
answer
probability/impact matrix
Unlock the answer
question
____ are/is a qualitative risk analysis tool, and in addition to identifying risks, it maintains an awareness of risks throughout the life of a project.
answer
Top Ten Risk Item Tracking
Unlock the answer
question
A(n) ____ is a diagramming analysis technique used to help select the best course of action in situations in which future outcomes are uncertain.
answer
decision tree
Unlock the answer
question
____ analysis simulates a model's outcome many times to provide a statistical distribution of the calculated results.
answer
Monte Carlo
Unlock the answer
question
What is the first step in a Monte Carlo analysis?
answer
Assess the range for the variables being considered.
Unlock the answer
question
____ involves eliminating a specific threat, usually by eliminating its causes.
answer
Risk avoidance
Unlock the answer
question
____ involves shifting the consequence of a risk and responsibility for its management to a third party.
answer
Risk transference
Unlock the answer
question
____ involves reducing the impact of a risk event by reducing the probability of its occurrence.
answer
Risk mitigation
Unlock the answer
question
____ involves doing whatever you can to make sure the positive risk happens.
answer
Risk exploitation
Unlock the answer
question
____ involves allocating ownership of the risk to another party.
answer
Risk sharing
Unlock the answer
question
____ involves changing the size of the opportunity by identifying and maximizing key drivers of the positive risk.
answer
Risk enhancement
Unlock the answer
question
____ applies to positive risks when the project team cannot or chooses not to take any actions toward a risk.
answer
Risk acceptance
Unlock the answer
question
____ risks are a direct result of implementing a risk response.
answer
Secondary
Unlock the answer
question
Risk management can have a(n) _____ impact on selecting projects, determining the scope of projects, and developing realistic schedules and cost estimates.
answer
positive
Unlock the answer
question
A project ____ is an uncertainty that can have a negative or positive effect on meeting project objectives.
answer
risk
Unlock the answer
question
Given that all projects involve ____ that can have negative or positive outcomes, the question is how to decide which projects to pursue and how to identify and manage project risk throughout a project's life cycle.
answer
uncertainty
Unlock the answer
question
The idea of striving to balance risks and opportunities suggests that different organizations and people have different ____ for risk.
answer
tolerance
Unlock the answer
question
____ is the amount of satisfaction or pleasure received from a potential payoff.
answer
Risk utility Risk tolerance
Unlock the answer
question
The main output of the ____ process is the start of a risk register.
answer
identifying risks
Unlock the answer
question
A(n) ____ documents the procedures for managing risk throughout the project.
answer
risk management plan
Unlock the answer
question
____ are provisions held by the project sponsor or organization to reduce the risk of cost or schedule overruns to an acceptable level.
answer
Contingency reserves Contingency allowances
Unlock the answer
question
A(n) ____ is a hierarchy of potential risk categories for a project.
answer
risk breakdown structure
Unlock the answer
question
Inadequate planning, poor resource allocation, poor integration management, and lack of post-project review are risk conditions associated with the ____ project management knowledge area.
answer
integration
Unlock the answer
question
____ is a technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing ideas spontaneously and without judgment.
answer
Brainstorming
Unlock the answer
question
The basic concept of the ____ is to derive a consensus among a panel of experts who make predictions about future developments.
answer
Delphi technique
Unlock the answer
question
____ based on risks that have been encountered in previous projects provide a meaningful template for understanding risks in a current project.
answer
Checklists
Unlock the answer
question
System or process ____ are diagrams that show how different parts of a system interrelate.
answer
flowcharts
Unlock the answer
question
A(n) ____ is a document that contains results of various risk management processes.
answer
risk register
Unlock the answer
question
____ are indicators or symptoms of actual risk events.
answer
Triggers
Unlock the answer
question
The ____ is the person who will own or take responsibility for the risk.
answer
risk owner
Unlock the answer
question
____ are numbers that represent the overall risk of specific events, based on their probability of occurring and the consequences to the project if they do occur.
answer
Risk factors
Unlock the answer
question
A(n) ____ is a list of risks that are low priority, but are still identified as potential risks.
answer
watch list
Unlock the answer
question
____ is the product of a risk event probability and the risk event's monetary value.
answer
Expected monetary value (EMV)
Unlock the answer
question
Many professionals use ____ to help make several common business decisions, such as determining break-even points based on different assumptions.
answer
sensitivity analysis
Unlock the answer
question
Risk ____ involves accepting the consequences should a risk occur.
answer
acceptance
Unlock the answer
question
Examples of risk ____ include using proven technology, having competent project personnel, using various analysis and validation techniques, and buying maintenance or service agreements from subcontractors.
answer
mitigation
Unlock the answer
question
____ risks are risks that remain after all of the response strategies have been implemented.
answer
Residual
Unlock the answer
question
Project teams sometimes use ____ unplanned responses to risk events when they do not have contingency plans in place.
answer
workarounds
Unlock the answer
