question

Risk

answer

Uncertain even or condition that, if it occurs, has a positive or negative effect on project objectives.

question

Name the 4 steps of risk management process.

answer

Step 1: Risk Identification Step 2: Risk Assessment Step 3: Risk Response Development Step 4: Risk Response Control

question

Risk Identification

answer

Step 1 in risk management process; analyze the project to identify sources of risk

question

Risk Assessment

answer

Step 2 in risk management process; assess risks in terms of severity of impact; likelihood of occurring; and controllability

question

Risk Response Development

answer

Step 3 in risk management process; develop a strategy to reduce possible damage; develop contingency plans

question

Risk Response Control

answer

Step 4 in risk management process; implement risk strategy; monitor and adjust plan for new risks; change management

question

The cost of impact of a risk event in the project is ________ if the event occurs earlier rather than later.

answer

Less

question

Error in time estimates, cost estimates, or design technology are biggest in which phases of the project?

answer

Concept, planning, and start-up phases

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

question

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

answer

D) Risk Tracking

question

One common mistake made early in the risk identification process is A) Not all possibilities are considered B) Participants are over-optimistic C) Participants are over-pessimistic D) Focus on objectives and not on the events that could produce consequences. E) Too much attention is given to past events

answer

D) Focus on objectives and not on the events that could produce consequences.

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

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

question

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

answer

C) Competitors

question

The easiest and most commonly used technique for analyzing risks is _____ analysis. A) Probability B) Scenario C) Payback D) Risk/reward E) Impact

answer

B) Scenario

question

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

answer

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

The demolition of the Seattle Kingdome (Snapshot from Practice) is an example of which of the following? A) Mitigating B) Retaining C) Ignoring D) Transferring E) Sharing

answer

D) Transferring

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

answer

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

Elimination of the risk cause before the project begins

answer

Avoiding risk

question

Reserve setup to cover identified risks that may occur and influence baseline tasks or costs. These reserves are typically controlled by the project manager and the project team.

answer

Budget reserve

question

A defined process for authorizing and documenting changes in the scope of a project.

answer

Change management system

question

A plan that covers possible identified project risks that may materialize over the life of the project.

answer

Contingency plan

question

A percentage of the total project budget reserved for contingencies. The fund exists to cover unforeseen, new problems—not unnecessary overruns. The reserve is designed to reduce the risk of project delays. Management reserves are typically controlled by the project owner or project manager.

answer

Management reserve

question

Action taken to either reduce the likelihood that a risk will occur and/or the impact the risk will have on the project.

answer

Mitigating risk

question

Event that can have a positive impact on project objectives

answer

Opportunity

question

Hierarchical depiction of the identified project risks arranged by risks category and subcategory that identifies the various areas and causes of potential risks.

answer

Risk Breakdown Structure (RBS)

question

Details all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status.

answer

Risk Register

question

A list of questions that addresses traditional areas of uncertainty on a project.

answer

Risk profile

question

A tool used to assess the impact of risks on a project.

answer

Risk Severity Matrix

question

The easiest and most commonly used technique for analyzing risks.

answer

Scenario Analysis

question

A contingency amount of time for an activity to cover uncertainty—for example, availability of a key resource or merge event.

answer

Time buffer

question

Shifting responsibility for a risk to another party.

answer

Transferring risk

Larson & Gray Project Management Chapter 7 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards