RISK MANAGEMENT PROFESSIONAL EXAMINATION QUESTION AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

RISK MANAGEMENT PROFESSIONAL EXAMINATION
QUESTION AND CORRECT ANSWER WITH EXPLANATION
GRADED A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. Risk management is defined as:
A. Identifying and controlling uncertainty
B. Ignoring problems
C. Increasing project cost
D. Eliminating planning
Answer: A
Rationale: Risk management deals with uncertainty.

2. Risk is best described as:
A. Uncertainty that affects objectives
B. Guaranteed failure
C. Fixed outcome
D. Budget plan
Answer: A
Rationale: Risk involves uncertainty.

3. Types of risk include:
A. Threats and opportunities
B. Only threats
C. Only opportunities
D. Only budgets
Answer: A
Rationale: Risks can be positive or negative.

4. Risk management process includes:
A. Identify, assess, respond, monitor
B. Design, build, test, close
C. Hire, train, fire, replace
D. Plan, skip, ignore, finish
Answer: A
Rationale: Standard risk cycle.

,5. Risk identification is:
A. Finding potential risks
B. Solving risks
C. Ignoring risks
D. Budgeting
Answer: A
Rationale: First step in risk management.

6. Risk assessment includes:
A. Probability and impact analysis
B. Hiring staff
C. Marketing analysis
D. Design process
Answer: A
Rationale: Evaluate likelihood and effect.

7. Qualitative risk analysis uses:
A. Subjective judgment
B. Complex formulas only
C. No data
D. Random guessing
Answer: A
Rationale: Ranking risks.

8. Quantitative risk analysis uses:
A. Numerical methods
B. Opinions only
C. No calculations
D. Random estimates
Answer: A
Rationale: Data-based analysis.

9. Risk probability means:
A. Likelihood of occurrence
B. Cost of project
C. Time schedule
D. Team size
Answer: A
Rationale: Chance of event.

, 10. Risk impact refers to:
A. Effect on objectives
B. Number of employees
C. Budget allocation
D. Project title
Answer: A
Rationale: Consequences of risk.

11. Risk register is:
A. Document of identified risks
B. Budget sheet
C. HR file
D. Marketing plan
Answer: A
Rationale: Risk tracking tool.

12. Risk owner is responsible for:
A. Managing assigned risk
B. Ignoring risk
C. Budget approval
D. Hiring staff
Answer: A
Rationale: Accountability role.

13. Avoidance strategy means:
A. Eliminating risk source
B. Ignoring risk
C. Accepting risk
D. Transferring risk
Answer: A
Rationale: Remove risk entirely.

14. Mitigation means:
A. Reducing probability or impact
B. Increasing risk
C. Ignoring risk
D. Transferring blame
Answer: A
Rationale: Risk reduction.