BMGT485 Final (Ch 7-15) UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Risk - CORRECT ANSWER - Uncertain event affecting project objectives.
Risk Management - CORRECT ANSWER - Process of identifying and managing potential
risks.
Benefits of Risk Management - CORRECT ANSWER - -A proactive approach
-Reduces negative consequences
-Prepares the project manager
-Provides better control
-Improves chances of reaching project objectives on time, within budget, and of meeting
required performance
Risk Identification - CORRECT ANSWER - 1) Generating a list of potential project risks.
2) Focus on ones that have consequences
3) Use RBS and Risk Profile to analyze
Risk Breakdown Structure (RBS) - CORRECT ANSWER - Hierarchical decomposition of
risks for analysis.
Risk Profile - CORRECT ANSWER - List of questions addressing areas of uncertainty.
Risk Assessment - CORRECT ANSWER - Evaluating probability and impact of identified
risks.
, Risk Assessment Form - CORRECT ANSWER - Tool for evaluating severity of risks.
Risk Severity Matrix - CORRECT ANSWER - Prioritizes risks based on severity and
impact.
Detection Probability - CORRECT ANSWER - Statistical method for assessing risk
detection likelihood.
Decision Trees - CORRECT ANSWER - Visual representation of decision-making under
uncertainty.
Net Present Value (NPV) - CORRECT ANSWER - Calculates the value of future cash
flows.
Mitigating Risk - CORRECT ANSWER - Taking steps to reduce the likelihood of risks.
Avoiding Risk - CORRECT ANSWER - Changing plans to eliminate risk exposure.
Transferring Risk - CORRECT ANSWER - Shifting risk responsibility to another party.
Contingency Plan - CORRECT ANSWER - Alternative plan if unforeseen risks occur.
Contingency Funds - CORRECT ANSWER - Funds reserved for covering identified
project risks.
Time Buffers - CORRECT ANSWER - Extra time added to activities to prevent delays.
Risk Register - CORRECT ANSWER - Document detailing identified risks and their
status.
ACTUAL Exam Questions and CORRECT
Answers
Risk - CORRECT ANSWER - Uncertain event affecting project objectives.
Risk Management - CORRECT ANSWER - Process of identifying and managing potential
risks.
Benefits of Risk Management - CORRECT ANSWER - -A proactive approach
-Reduces negative consequences
-Prepares the project manager
-Provides better control
-Improves chances of reaching project objectives on time, within budget, and of meeting
required performance
Risk Identification - CORRECT ANSWER - 1) Generating a list of potential project risks.
2) Focus on ones that have consequences
3) Use RBS and Risk Profile to analyze
Risk Breakdown Structure (RBS) - CORRECT ANSWER - Hierarchical decomposition of
risks for analysis.
Risk Profile - CORRECT ANSWER - List of questions addressing areas of uncertainty.
Risk Assessment - CORRECT ANSWER - Evaluating probability and impact of identified
risks.
, Risk Assessment Form - CORRECT ANSWER - Tool for evaluating severity of risks.
Risk Severity Matrix - CORRECT ANSWER - Prioritizes risks based on severity and
impact.
Detection Probability - CORRECT ANSWER - Statistical method for assessing risk
detection likelihood.
Decision Trees - CORRECT ANSWER - Visual representation of decision-making under
uncertainty.
Net Present Value (NPV) - CORRECT ANSWER - Calculates the value of future cash
flows.
Mitigating Risk - CORRECT ANSWER - Taking steps to reduce the likelihood of risks.
Avoiding Risk - CORRECT ANSWER - Changing plans to eliminate risk exposure.
Transferring Risk - CORRECT ANSWER - Shifting risk responsibility to another party.
Contingency Plan - CORRECT ANSWER - Alternative plan if unforeseen risks occur.
Contingency Funds - CORRECT ANSWER - Funds reserved for covering identified
project risks.
Time Buffers - CORRECT ANSWER - Extra time added to activities to prevent delays.
Risk Register - CORRECT ANSWER - Document detailing identified risks and their
status.
