EXAM 2 (EGS4625 - FUNDAMENTALS OF
ENGINEERING PROJECT MANAGEMENT)
EXAM 2025 QUESTIONS AND ANSWERS
What is "risk"? - ....ANSWER ...-Risk = uncertainty of an event/consequence
- it's inherent in every project
- can be good or bad
- don't fear risk, manage it
Risk = opportunity
Risk utility (or risk tolerance) - ....ANSWER ...-The amount of satisfaction or
pleasure received from a potential payoff
Risk strategies - ....ANSWER ...-Allocation - directs responsibility and control
Mitigation - the 'art' of managing risks
Avoidance - don't take on the risk
Types of risk (from a PM's perspective)? - ....ANSWER ...-- Direct Control
- Influenced Only
- Outside of Control
Directly controllable risks - ....ANSWER ...-- Client Selection
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 1
,- Project Selection
- Project Team Performance
- Employee Safety
- Staff Selection
- Subcontractor Selection
'Influenced only' risks - ....ANSWER ...-- Contract Terms and Conditions
- Client Satisfaction and Expectations
- Subcontractor Performance and Safety
- Actual 3rd Party Impacts
^ Involves parties you do not have direct oversight of
Risks beyond a PM's control - ....ANSWER ...-- Subcontractor Business
Management/Compliance
- Regulatory Changes
- Legal Standards, Judgment and Decisions Regarding Our Action
- Perceived 3rd Party Impacts
What is risk management? - ....ANSWER ...-Project risk management is the art
and science of identifying, analyzing, and responding to risk throughout the life of a
project and in the best interests of meeting project objectives
The Key Components of A Risk Management Plan - ....ANSWER ...-- Planning
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 2
, - Identification
- Analysis
- Response
- Monitoring and Control
Step 1: Planning (of Risk Management Process) - ....ANSWER ...-- Know your
client/stakeholders
- Know your contract
- Know your scope
- Know your resources
Primary tool: risk register does what? - ....ANSWER ...-A risk register:
- Contains the results of various risk management analyses
- Documents potential risk events and related information
Components of a Risk Register - ....ANSWER ...-- Risk identification: a
description of the risk
- Condition: the likely cause of the risk
- Consequence: the result of the risk, should it happen
- Qualitative analysis
• Probability: estimate of the likelihood of risk occurrence
• Impact: the severity of risk (typically in $)
• Exposure = probability x impact, the factored risk
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 3
ENGINEERING PROJECT MANAGEMENT)
EXAM 2025 QUESTIONS AND ANSWERS
What is "risk"? - ....ANSWER ...-Risk = uncertainty of an event/consequence
- it's inherent in every project
- can be good or bad
- don't fear risk, manage it
Risk = opportunity
Risk utility (or risk tolerance) - ....ANSWER ...-The amount of satisfaction or
pleasure received from a potential payoff
Risk strategies - ....ANSWER ...-Allocation - directs responsibility and control
Mitigation - the 'art' of managing risks
Avoidance - don't take on the risk
Types of risk (from a PM's perspective)? - ....ANSWER ...-- Direct Control
- Influenced Only
- Outside of Control
Directly controllable risks - ....ANSWER ...-- Client Selection
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 1
,- Project Selection
- Project Team Performance
- Employee Safety
- Staff Selection
- Subcontractor Selection
'Influenced only' risks - ....ANSWER ...-- Contract Terms and Conditions
- Client Satisfaction and Expectations
- Subcontractor Performance and Safety
- Actual 3rd Party Impacts
^ Involves parties you do not have direct oversight of
Risks beyond a PM's control - ....ANSWER ...-- Subcontractor Business
Management/Compliance
- Regulatory Changes
- Legal Standards, Judgment and Decisions Regarding Our Action
- Perceived 3rd Party Impacts
What is risk management? - ....ANSWER ...-Project risk management is the art
and science of identifying, analyzing, and responding to risk throughout the life of a
project and in the best interests of meeting project objectives
The Key Components of A Risk Management Plan - ....ANSWER ...-- Planning
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 2
, - Identification
- Analysis
- Response
- Monitoring and Control
Step 1: Planning (of Risk Management Process) - ....ANSWER ...-- Know your
client/stakeholders
- Know your contract
- Know your scope
- Know your resources
Primary tool: risk register does what? - ....ANSWER ...-A risk register:
- Contains the results of various risk management analyses
- Documents potential risk events and related information
Components of a Risk Register - ....ANSWER ...-- Risk identification: a
description of the risk
- Condition: the likely cause of the risk
- Consequence: the result of the risk, should it happen
- Qualitative analysis
• Probability: estimate of the likelihood of risk occurrence
• Impact: the severity of risk (typically in $)
• Exposure = probability x impact, the factored risk
....FOR STUDY PURPOSES...©️2025 ALL RIGHTS RESERVED... 3
