What is the difference between risk appetite, risk threshold, and risk tolerance?
Risk appetite describes the general attitude of the organization regarding risk, risk
A tolerance defines how much impact the organization will accept, and risk threshold
defines the impact point where the risk will no longer be accepted.
Risk appetite and risk tolerance mean the same thing; both define the general attitude of
B the organization regarding risk. Risk threshold defines the impact level where the risk must
be avoided.
C There is no difference. These three terms are interchangeable.
Risk appetite describes the general attitude of the organization regarding risk. The other
two terms mean the same thing.
What are some examples of quantitative risk analysis tools?
A Decision trees, simulation, and risk breakdown structures
B Simulation, sensitivity diagrams, and influence diagrams
(62 Delphi technique, RBS, and expected monetary value
D Simulation, probability and impact matrix, and SWOT analysis
Which of the following is NOT an objective of the risk monitoring process?
A Assess if overall project risk level has changed.
B Implement the agreed-upon risk response plans.
C Identify new and/or secondary risks.
D Monitor implementation status of risk response plans
E Track status of contingency reserves.
, By considering the uncertainty level of both the requirements and the technical solution for the
project, the project manager refers to the Stacey complexity model and determines the project falls
into the Complicated range. What project approach does the Stacey complexity model recommend
in this situation?
A Hybrid approach
B Prototyping approach
[or Resilient approach
D Predictive approach
E Adaptive approach
The project team documents in the risk management plan that it will use risk classifications of
scope, schedule, cost, and quality. What type of risk classification is this?
A Effect-based
B Project objectives
C Source-based
D Event
E Nonevent
Risk A has a probability of 50 percent and an impact score of 9. Risk B has a probability of 60
percent and an impact score of 8. Risk C has a probability of 90 percent and an impact score of 6.
Risk D has a probability of 30 percent and an impact score of 10. Which risk will be ranked the
highest?
B Risk B
Risk appetite describes the general attitude of the organization regarding risk, risk
A tolerance defines how much impact the organization will accept, and risk threshold
defines the impact point where the risk will no longer be accepted.
Risk appetite and risk tolerance mean the same thing; both define the general attitude of
B the organization regarding risk. Risk threshold defines the impact level where the risk must
be avoided.
C There is no difference. These three terms are interchangeable.
Risk appetite describes the general attitude of the organization regarding risk. The other
two terms mean the same thing.
What are some examples of quantitative risk analysis tools?
A Decision trees, simulation, and risk breakdown structures
B Simulation, sensitivity diagrams, and influence diagrams
(62 Delphi technique, RBS, and expected monetary value
D Simulation, probability and impact matrix, and SWOT analysis
Which of the following is NOT an objective of the risk monitoring process?
A Assess if overall project risk level has changed.
B Implement the agreed-upon risk response plans.
C Identify new and/or secondary risks.
D Monitor implementation status of risk response plans
E Track status of contingency reserves.
, By considering the uncertainty level of both the requirements and the technical solution for the
project, the project manager refers to the Stacey complexity model and determines the project falls
into the Complicated range. What project approach does the Stacey complexity model recommend
in this situation?
A Hybrid approach
B Prototyping approach
[or Resilient approach
D Predictive approach
E Adaptive approach
The project team documents in the risk management plan that it will use risk classifications of
scope, schedule, cost, and quality. What type of risk classification is this?
A Effect-based
B Project objectives
C Source-based
D Event
E Nonevent
Risk A has a probability of 50 percent and an impact score of 9. Risk B has a probability of 60
percent and an impact score of 8. Risk C has a probability of 90 percent and an impact score of 6.
Risk D has a probability of 30 percent and an impact score of 10. Which risk will be ranked the
highest?
B Risk B
