CHAPTER 7 - MANAGING RISK EXAM QUESTIONS AND ANSWERS #17
1. What are the key elements of a contingency plan?: Defining the event that will initiate/trigger
the plan into action, cost estimates in the planning, not execution, phase, and all parties
affected should have the authority to make commitments
2. What are the appropriate methods for handling technical (project technolo- gy related issues)
risk?: testing and assessment methods and back up or alternate plans
3. What are the potential actions of project funding cuts such as the reduction of elimination of the
source project cash flow?: cancel the remainder of the project and/or reduce the project scope
4. Which statement best defines the methodology for accepting project oppor- tunities?: When the
event occurs, implement increased application of resources, but don't expend any pursuing it.
5. In scenario analysis, the significance of is assessed.: Each risk
event
6. When identifying risk, a team should initially focus on what aspect of risk?: A chance
event happening.
7. Which statement best describes the scales used to measure or predict probability, impact, and
detection?: They may vary depending on the project.
8. Risk identification process should be limited to just the core team.: False
9. Which of the following are used by a risk assessment matrix to prioritize identified risk?:
Impact and likelihood
10.The goal of failure mode and effects analysis (FMEA) is to prioritize risk by: Assigning
numerical FMEA rankings
11.What is the outcome of the statistical methodology used in the program evaluation and review
technique (PERT)?: The likelihood of various project dura- tions
12.In scenario analysis, which of the following is used to assess risk?: Prob- ability of an event
and the impact of an event
13.What is the purpose of a budget set up in a contingency plan?: It is set up to cover identified
risks
14.What is the purpose of management set up in a contingency plan?: It is set up to cover
unknown or unidentified risks.
15.What is the purpose of time being set up in a contingency plan?: It is set up to cover
identified and or unknown risks.
16.What is a risk event?: An event that may or may not occur in the future that could have
an impact on a project's objectives
17.List the steps of risk management in their proper sequence.: risk identifica- tion
Risk assessment
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1. What are the key elements of a contingency plan?: Defining the event that will initiate/trigger
the plan into action, cost estimates in the planning, not execution, phase, and all parties
affected should have the authority to make commitments
2. What are the appropriate methods for handling technical (project technolo- gy related issues)
risk?: testing and assessment methods and back up or alternate plans
3. What are the potential actions of project funding cuts such as the reduction of elimination of the
source project cash flow?: cancel the remainder of the project and/or reduce the project scope
4. Which statement best defines the methodology for accepting project oppor- tunities?: When the
event occurs, implement increased application of resources, but don't expend any pursuing it.
5. In scenario analysis, the significance of is assessed.: Each risk
event
6. When identifying risk, a team should initially focus on what aspect of risk?: A chance
event happening.
7. Which statement best describes the scales used to measure or predict probability, impact, and
detection?: They may vary depending on the project.
8. Risk identification process should be limited to just the core team.: False
9. Which of the following are used by a risk assessment matrix to prioritize identified risk?:
Impact and likelihood
10.The goal of failure mode and effects analysis (FMEA) is to prioritize risk by: Assigning
numerical FMEA rankings
11.What is the outcome of the statistical methodology used in the program evaluation and review
technique (PERT)?: The likelihood of various project dura- tions
12.In scenario analysis, which of the following is used to assess risk?: Prob- ability of an event
and the impact of an event
13.What is the purpose of a budget set up in a contingency plan?: It is set up to cover identified
risks
14.What is the purpose of management set up in a contingency plan?: It is set up to cover
unknown or unidentified risks.
15.What is the purpose of time being set up in a contingency plan?: It is set up to cover
identified and or unknown risks.
16.What is a risk event?: An event that may or may not occur in the future that could have
an impact on a project's objectives
17.List the steps of risk management in their proper sequence.: risk identifica- tion
Risk assessment
1/
4
