CM 4221 FINAL NEW EXAM QUESTIONS AND CORRECT ANSWERS FOR
TOP PERFORMANCE
Risk: A possible occurrence that produces an outcome that deviates from the
original plan. An unforeseen circumstance that can impact your project in a
favorable or unfavorable way. A gauge of the likelihood and extent of reaching
or failing to reach a specific project objective
Threat- ANSWER An adverse consequence of a risk
Opportunity: A favorable outcome of a risk
Risk analysis - ANSWER Forecasting how a dangerous occurrence will affect
a desired outcome. "How much will this project actually cost?"
ANSWER Choosing a path of action when faced with danger is an example of
decision analysis. "Should we bid a project that has high levels of uncertainty in
the site conditions?"
The set of all possible outcomes, both positive and negative, within each given
risk is known as uncertainty. includes variables such as occurrence frequency,
occurrence severity, and possible outcomes.
Expected Value is calculated by multiplying the event's impact by its
probability. "Severity" is commonly used to describe impact (or consequence).
PxS
Unit Risk: ANSWER What happens if we know the frequency (e.g., injuries,
faults) but not the probabilities?
(Severity) x (Frequency)
ANSWER : Managing hazards on your project in an active manner. Instead of
responding to issues after they arise, the project team's role should be to
proactively prevent them. The project manager is in charge of this endeavor.
, The one who has the most control over the danger is the one who should take it
on.
ANSWER Risk management, insurance, bonding, contract transfer, safety
program/culture, quality management, and contingency are risk management
tools.
Risk management is a very proactive task that gives the project manager
control. Studies have shown that it can reduce up to 90% of project problems
and save 5% of project costs. Formal/structured risk management is a
continuous process that helps to better understand potential project outcomes
and control project outcomes.
The first step in the risk management process is risk identification. Examine the
project to determine its risk factors. Determine, classify, and record any risk
(and opportunity) that potentially have an impact on the project. Launch the
"Risk Register"—a thorough, non-overlapping list of hazards. Finally, give a
thorough description of each problem.
Step 2 of the risk management process is risk assessment. Evaluate risk based
on its likelihood, severity, and controllability. procedure for accurately
characterizing and evaluating the risks' seriousness in terms of their likelihood
of happening and their effect.
ANSWER Step 3 of the Risk Management Process is Risk ANSWER
Development (Planning). Create a plan to lessen the potential impact and make
backup plans. Get rid of dangers before they materialize. Ensure that
opportunities arise. Reduce the likelihood and/or effect of dangers. Boost
opportunities' likelihood and/or effect. Contingency and fallback plans for
residual threats.
Step 4 of the risk management process is Risk ANSWER Control. Execute a
risk strategy, keep an eye on and modify plans for emerging risks, and manage
change. the procedure for carrying out risk ANSWER plans, monitoring
residual risks, tracking recognized risks, finding new risks, and assessing the
efficacy of the risk process during the course of the project.
Business Risk: The Potential for Gain or Loss
Insurable (Pure) Risk: Only the possibility of loss (e.g., fire, theft, personal
injury)
Internal Risk: ANSWER s to risks that could impact the project and are under
TOP PERFORMANCE
Risk: A possible occurrence that produces an outcome that deviates from the
original plan. An unforeseen circumstance that can impact your project in a
favorable or unfavorable way. A gauge of the likelihood and extent of reaching
or failing to reach a specific project objective
Threat- ANSWER An adverse consequence of a risk
Opportunity: A favorable outcome of a risk
Risk analysis - ANSWER Forecasting how a dangerous occurrence will affect
a desired outcome. "How much will this project actually cost?"
ANSWER Choosing a path of action when faced with danger is an example of
decision analysis. "Should we bid a project that has high levels of uncertainty in
the site conditions?"
The set of all possible outcomes, both positive and negative, within each given
risk is known as uncertainty. includes variables such as occurrence frequency,
occurrence severity, and possible outcomes.
Expected Value is calculated by multiplying the event's impact by its
probability. "Severity" is commonly used to describe impact (or consequence).
PxS
Unit Risk: ANSWER What happens if we know the frequency (e.g., injuries,
faults) but not the probabilities?
(Severity) x (Frequency)
ANSWER : Managing hazards on your project in an active manner. Instead of
responding to issues after they arise, the project team's role should be to
proactively prevent them. The project manager is in charge of this endeavor.
, The one who has the most control over the danger is the one who should take it
on.
ANSWER Risk management, insurance, bonding, contract transfer, safety
program/culture, quality management, and contingency are risk management
tools.
Risk management is a very proactive task that gives the project manager
control. Studies have shown that it can reduce up to 90% of project problems
and save 5% of project costs. Formal/structured risk management is a
continuous process that helps to better understand potential project outcomes
and control project outcomes.
The first step in the risk management process is risk identification. Examine the
project to determine its risk factors. Determine, classify, and record any risk
(and opportunity) that potentially have an impact on the project. Launch the
"Risk Register"—a thorough, non-overlapping list of hazards. Finally, give a
thorough description of each problem.
Step 2 of the risk management process is risk assessment. Evaluate risk based
on its likelihood, severity, and controllability. procedure for accurately
characterizing and evaluating the risks' seriousness in terms of their likelihood
of happening and their effect.
ANSWER Step 3 of the Risk Management Process is Risk ANSWER
Development (Planning). Create a plan to lessen the potential impact and make
backup plans. Get rid of dangers before they materialize. Ensure that
opportunities arise. Reduce the likelihood and/or effect of dangers. Boost
opportunities' likelihood and/or effect. Contingency and fallback plans for
residual threats.
Step 4 of the risk management process is Risk ANSWER Control. Execute a
risk strategy, keep an eye on and modify plans for emerging risks, and manage
change. the procedure for carrying out risk ANSWER plans, monitoring
residual risks, tracking recognized risks, finding new risks, and assessing the
efficacy of the risk process during the course of the project.
Business Risk: The Potential for Gain or Loss
Insurable (Pure) Risk: Only the possibility of loss (e.g., fire, theft, personal
injury)
Internal Risk: ANSWER s to risks that could impact the project and are under
