Question 1

A risk is an uncertain event that, if it occurs, can have a positive or negative effect on project objectives.

Accepted Answer

A) True 
 B)False

Question 2

One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.

Accepted Answer

A) True 
 B)False

Question 3

Change management systems involve reporting, controlling, and recording changes to the project baseline.

Accepted Answer

A) True 
 B)False

Question 4

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a

Accepted Answer

A)  Random chance.
B)  Disaster.
C)  Risk.
D)  Hazard.
E)  Bad luck.F) A) and C)
G) A) and E)

Question 5

When considering risk management, what is an opportunity? List and briefly describe 4 different responses to an opportunity.

Accepted Answer

An opportunity is an event that can have...

Question 6

The significance of a risk is assessed in terms of the ________ and the impact of the event.

Accepted Answer

likelihood
Explanation: Team m...

Question 7

The initial step in the risk management process is to

Accepted Answer

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.F) A) and B)
G) A) and C)

Question 8

The risk assessment form contains all of the following EXCEPT

Accepted Answer

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.F) B) and D)
G) A) and D)

Question 9

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk.

Accepted Answer

A)  Risk breakdown structures
B)  Contingency breakdown structures
C)  Scenario analysis
D)  Organizational breakdown structure
E)  Risk assessmentF) A) and C)
G) A) and E)

Question 10

The probability that a risk event will occur is higher during the initial stages of a project.

Accepted Answer

A) True 
 B)False

Question 11

A list of questions that address traditional areas of uncertainty on a project is known as a _________.

Accepted Answer

risk profile
Explanation: A ri...

Question 12

After your team has successfully identified potential risks that could affect the project, what is the next step?

Accepted Answer

A)  Create a risk breakdown structure
B)  Assess identified risks
C)  Create contingency plans
D)  Decide how to respond to all risks
E)  Mitigate risksF) A) and E)
G) A) and D)

Question 13

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?

Accepted Answer

A)  Mitigating
B)  Retaining
C)  Ignoring
D)  Transferring
E)  AvoidingF) B) and C)
G) None of the above

Question 14

Risks are evaluated in terms of

Accepted Answer

A)  Likelihood and cost.
B)  Cost and schedule.
C)  Impact and cost.
D)  Time and impact.
E)  Likelihood and impact.F) C) and E)
G) A) and D)

Question 15

What is the difference between budget reserves and management reserves?

Accepted Answer

Budget reserves are controlled by team p...

Question 16

Risk management is a reactive approach that is designed to ensure that surprises are reduced and that negative consequences associated with undesirable events are minimized.

Accepted Answer

A) True 
 B)False

Question 17

Identify and briefly describe the four ways to respond to identified risks.

Accepted Answer

(1)Mitigate the risk-involves reducing t...

Question 18

When considering risk response development, passing risk to another party instead of changing it is known as ____________ the risk.

Accepted Answer

transferring
Explanation: Pass...

Question 19

This response is used when an identified Opportunity is not actively pursued.

Accepted Answer

A)  Exploit
B)  Share
C)  Enhance
D)  AcceptE) None of the above
F) A) and B)

Question 20

A Risk Response Matrix contains all of the following EXCEPT

Accepted Answer

A)  Contingency plan.
B)  Trigger.
C)  Who is responsible.
D)  Response.
E)  When the risk will occur.F) A) and C)
G) B) and D)

Exam 7: Managing Risk

One common mistake that is made early on in the risk identification process is to focus on consequences and not on the events that could produce consequences.

Correct AnswerverifiedShow Answer

Change management systems involve reporting, controlling, and recording changes to the project baseline.

Correct AnswerverifiedShow Answer

A risk is an uncertain event that, if it occurs, can have a positive or negative effect on project objectives.

Correct AnswerverifiedShow Answer

A Risk Response Matrix contains all of the following EXCEPT

Correct AnswerverifiedShow Answer

Risks are evaluated in terms of

Correct AnswerverifiedShow Answer

After your team has successfully identified potential risks that could affect the project, what is the next step?

Correct AnswerverifiedShow Answer

When considering risk management, what is an opportunity? List and briefly describe 4 different responses to an opportunity.

Correct AnswerverifiedAn opportunity is an event that can have...View AnswerShow Answer

The risk assessment form contains all of the following EXCEPT

Correct AnswerverifiedShow Answer

The significance of a risk is assessed in terms of the ________ and the impact of the event.

Correct AnswerverifiedlikelihoodExplanation: Team m...View AnswerShow Answer

What is the difference between budget reserves and management reserves?

Correct AnswerverifiedBudget reserves are controlled by team p...View AnswerShow Answer

When considering risk response development, passing risk to another party instead of changing it is known as ____________ the risk.

Correct AnswerverifiedtransferringExplanation: Pass...View AnswerShow Answer

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?

Correct AnswerverifiedShow Answer

The initial step in the risk management process is to

Correct AnswerverifiedShow Answer

Risk management is a reactive approach that is designed to ensure that surprises are reduced and that negative consequences associated with undesirable events are minimized.

Correct AnswerverifiedShow Answer

A list of questions that address traditional areas of uncertainty on a project is known as a _________.

Correct Answerverifiedrisk profileExplanation: A ri...View AnswerShow Answer

The probability that a risk event will occur is higher during the initial stages of a project.

Correct AnswerverifiedShow Answer

Organizations use __________ in conjunction with work breakdown structures to help management teams identify and eventually analyze risk.

Correct AnswerverifiedShow Answer

Identify and briefly describe the four ways to respond to identified risks.

Correct Answerverified(1)Mitigate the risk-involves reducing t...View AnswerShow Answer

This response is used when an identified Opportunity is not actively pursued.

Correct AnswerverifiedShow Answer

An uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives is termed a

Correct AnswerverifiedShow Answer

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An opportunity is an event that can have...
View Answer

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likelihood
Explanation: Team m...
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Budget reserves are controlled by team p...
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transferring
Explanation: Pass...
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risk profile
Explanation: A ri...
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(1)Mitigate the risk-involves reducing t...
View Answer

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