RISK TEST QUESTIONS AND
COMPLETE SOLUTIONS GRADED
A+
Your Exam Plug
,• A risk is ............... that results in an ..................
that is different from what is planned. - Answer: potential event ; outcome
A risk is an ................... that could have a ................ on your project - Answer: uncertain event ; positive
or negative effect
A negative effect is a - Answer: a threat
A positive effect is - Answer: an opportunity
Risk is a measure of - Answer: probability and magnitude of
achieving or not achieving a defined project goal
Predicting the effects of risky events
on an outcome of interest - Answer: Risk analysis
Deciding upon a course of action
in the face of risk - Answer: Decision analysis
What are five risk identification tools and techniques that construction managers use? - Answer:
Brainstorming, nominal, assumption, Crawford, checklists, root cause, influence.
How to Write a Risk Statement - Answer: "If <RISK EVENT> happens, then <CONSEQUENCE>,
which will <IMPACT> the <PROJECT OBJECTIVE>."
Risk management is not: - Answer: Completing a list
- Running a "Monte Carlo simulation"
- Ponderous and expensive
-Only appropriate to large projects
, - A process that drives a project to "bankruptcy"
A hospital project in San Diego, CA will be installing an intricate glass curtain wall as the signature
aesthetics for a building. There is a 30% chance that the curtain wall construction (which are all critical
path activities) will experience difficulties in assembling the curtain wall. This may result in additional
labor and time to complete the work. If it is possible that the additional work will cost $70,000 more and
will take an additional 10 working days, what contingency could be added to the budget and schedule to
account for this uncertainty? - Answer: $21, days
t/f Brainstorming is a tool used to identify and assess project risks - Answer: false
t/f Brainstorming is a tool used to identify potential project risks as well as generating value engineering
ideas - Answer: true
In a work in progress report, what does Billed to Date mean? - Answer: The actual billings that reflect
company accounting records
t/f Risk management is a process of reactively dealing with problems once they arise - Answer: false
t/f CPA's and sureties state that underbilling is never a good thing for a construction company. - Answer:
true
is simply the set of all potential outcomes, both
favorable and unfavorable, within each known risk - Answer: uncertainty
Uncertainty involves - Answer: - Frequency of occurrence
- Severity of the occurrence
- Outcomes that can occur within a range
Probability of event times the Impact
of the event - Answer: Expected Value
COMPLETE SOLUTIONS GRADED
A+
Your Exam Plug
,• A risk is ............... that results in an ..................
that is different from what is planned. - Answer: potential event ; outcome
A risk is an ................... that could have a ................ on your project - Answer: uncertain event ; positive
or negative effect
A negative effect is a - Answer: a threat
A positive effect is - Answer: an opportunity
Risk is a measure of - Answer: probability and magnitude of
achieving or not achieving a defined project goal
Predicting the effects of risky events
on an outcome of interest - Answer: Risk analysis
Deciding upon a course of action
in the face of risk - Answer: Decision analysis
What are five risk identification tools and techniques that construction managers use? - Answer:
Brainstorming, nominal, assumption, Crawford, checklists, root cause, influence.
How to Write a Risk Statement - Answer: "If <RISK EVENT> happens, then <CONSEQUENCE>,
which will <IMPACT> the <PROJECT OBJECTIVE>."
Risk management is not: - Answer: Completing a list
- Running a "Monte Carlo simulation"
- Ponderous and expensive
-Only appropriate to large projects
, - A process that drives a project to "bankruptcy"
A hospital project in San Diego, CA will be installing an intricate glass curtain wall as the signature
aesthetics for a building. There is a 30% chance that the curtain wall construction (which are all critical
path activities) will experience difficulties in assembling the curtain wall. This may result in additional
labor and time to complete the work. If it is possible that the additional work will cost $70,000 more and
will take an additional 10 working days, what contingency could be added to the budget and schedule to
account for this uncertainty? - Answer: $21, days
t/f Brainstorming is a tool used to identify and assess project risks - Answer: false
t/f Brainstorming is a tool used to identify potential project risks as well as generating value engineering
ideas - Answer: true
In a work in progress report, what does Billed to Date mean? - Answer: The actual billings that reflect
company accounting records
t/f Risk management is a process of reactively dealing with problems once they arise - Answer: false
t/f CPA's and sureties state that underbilling is never a good thing for a construction company. - Answer:
true
is simply the set of all potential outcomes, both
favorable and unfavorable, within each known risk - Answer: uncertainty
Uncertainty involves - Answer: - Frequency of occurrence
- Severity of the occurrence
- Outcomes that can occur within a range
Probability of event times the Impact
of the event - Answer: Expected Value
