Chapter 7-MGMT 368

question

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

c. Indentify the risks
question

One common mistake made in identifying project risks is that A. Too much attention is given to past events B. Efforts are focused on consequences rather than causal events C. Participants are over-pessimistic D. Not all possibilities are considered E. Participants are over-optimistic
answer

B. Efforts are focused on consequences rather than causal events
question

In the beginning the focus of risk management should be on risks that A. Have the greatest schedule impact B. Have the greatest cost impact C. Are known D. Impact the whole project E. Impact the critical path
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D. Impact the whole project
question

The easiest and most commonly used technique for analyzing risks is _____ analysis. A. Impact B. Risk/reward C. Payback D. Probability E. Scenario
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E. Scenario
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Which of the following is not one of the potential responses to a specific risk event? A. Sharing B. Transferring C. Ignoring D. Mitigating E. Retaining
answer

C. Ignoring
question

A list of questions that address traditional areas of uncertainty on a project is termed a risk A) Profile B) Questionnaire C) Research D) Query E) Checklist
answer

A) Profile
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All of the following are included in the risk identification process except A) Customers B) Subcontractors C) Competitors D) Vendors E) None of these are included
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C) Competitors
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A risk profile is a list of questions that address traditional areas of uncertainty on a project that answers developed from: A) When the event might occur in the project B) Chances of the event occurring C) Interaction with other parts of the project or with other projects D) From previous, similar projects E) Magnitude or severity of the event’s impact
answer

D) From previous, similar projects
question

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
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C) Who will detect the occurrence of the risk event.
question

Which of the following is not one of the probability analysis tools? A) Ratio/range analysis B) Decision tree C) PERT simulation D) PERT E) All of these are probability analysis tools
answer

A) Ratio/range analysis
question

Technical risks are: A) Often the kind that can cause the project to be shut down. B) Problematic C) Imposed duration dates D) Both A and B are correct E) A, B, and C are all correct
answer

D) Both A and B are correct
question

Detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners and current status is called: A) Management reserves B) Change control C) Contingency reserves D) Risk register E) Risk profiles
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D) Risk register
question

Change management systems are designed to accomplish all of the following except: A) Track all changes that are to be implemented B) Review, evaluates, 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 the above are correct
answer

E) All of the above are correct
question

This risk assessment tool is a variation of the risk severity matrix that includes the ease of detection for each of the identified risks. A) PERT simulation B) FMEA analysis C) ratio/range analysis D) probability analysis E) semi-quantitative analysis
answer

B) FMEA analysis
question

The 1999 NASA Mars Climate Orbiter is an example of A) Disaster avoidance through proactive risk management B) Murphy’s Law C) Proper use of critical thinking D) Mismanaged risk control E) Using historical records to assess risk
answer

D) Mismanaged risk control
question

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
answer

C) Who will detect the occurrence of the risk event.
question

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
answer

A) Slowly rise

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