Questions
1. Mary and Thomas are project managers for their organization, and
they’re discussing risk management and risk responses. Thomas insists
that an organization should never accept a project risk, and Mary says
that sometimes it’s okay. They’ve called on you, a project management
expert, to help with this decision. When is it appropriate to accept a
project risk?
A. It is never appropriate to accept a project risk.
B. All risks must be mitigated or transferred.
C. It is appropriate to accept a risk if the project team has never
completed this type of project work before.
D. It is appropriate if the risk is in balance with the reward.
2. Frances is the project manager of the LKJ Project. Which of the
following techniques will she use to create the risk management plan?
A. Risk tolerance
B. Status meetings
C. Planning meetings
D. Variance meetings
3. You are the project manager of the GHK Project. You and the
manufacturer have agreed to substitute the type of plastic used in the
product to a slightly thicker grade should there be more than 7 percent
error in production. The thicker plastic will cost more and will require
the production to slow down, but the errors should diminish. This is an
example of which of the following?
A. Threshold
B. Tracking
C. Budgeting
D. JIT manufacturing
4. You are a project manager consultant for the Allen T1 Company, and
you’re helping them create a risk management plan for their project
management office. You’re explaining the concept of risk tolerance and
how it affects the risk management policies. An organization’s risk
tolerance is also known as what?
A. The utility function
B. Herzberg’s Theory of Motivation
C. Risk acceptance
D. The risk-reward ratio
5. The customers of the project have requested additions to the project
scope. The project manager notifies you that additional risk planning
will need to be added to the project schedule in this predictive project.
Why?
A. The risk planning should always be the same amount of time as the
activities required by the scope change.
B. Risk planning should occur whenever the scope is adjusted.
C. Risk planning should occur only at the project manager’s discretion.
D. The project manager is incorrect. Risk planning does not need to
happen at every change in the project.
6. Jason is the project manager for his organization, and he’s working with
his project team to identify and analyze project risks. Jason begins to
create a risk register as part of this process, but his team doesn’t
understand what a risk register is or its purpose. Which one of the
following best describes the risk register?
A. It documents all of the outcomes of the other risk management
processes.
B. It’s a document that contains the initial risk identification entries.
C. It’s a system that tracks all negative risks within a project.
D. It’s part of the project’s project management information system
(PMIS) for integrated change control.
7. You are a project management consultant for the Steinberg
Organization, and you’re helping them categorize risks they may
encounter in their projects. For starters, you identify some basic risk
categories, but your client wants to see some examples of these
categories. You tell them, for example, that
_______________________ include(s) fire, theft, or injury, and offer(s)
no chance for gain.
A. Business risks
B. Pure risks
C. Risk acceptance
D. Life risks
8. Complete this sentence: A project risk is a(n)
______________________ occurrence that can affect the project for
good or bad.
A. Known
B. Potential
C. Uncertain
D. Known unknown
9. Bradley is the scrum master for his organization, and he’s working with
his project team to identify risks. Some of the project team members are
confused as to when risk identification should happen in the project.
When should risk identification happen?
A. As early as possible in the initiation process
B. As early as possible in the planning process
C. Throughout the product management life cycle
D. Throughout the project life cycle
10. You are the project manager of the KLJH Project. This project will last
two years and has 30 stakeholders. How often should risk identification
take place?
A. Once at the beginning of the project
B. Throughout the execution processes
C. Throughout the project
D. Once per project phase
11. Ruth is a project management expert and consultant for businesses
creating project management offices. Ruth’s current client wants help to
improve risk identification. Which one of the following is an acceptable
tool for risk identification?
A. Decision tree analysis
B. Decomposition of the project scope
C. The Delphi Technique
D. Pareto charting
12. You are the project manager for a hybrid project that will create a new
and improved web site for your company. Currently, your company has
more than 8 million users around the globe. You would like to poll
experts within your organization with a simple, anonymous form asking
about any foreseeable risks in the design, structure, and intent of the
web site. With the collected information, subsequent anonymous polls
are submitted to the group of experts. This is an example of
_________________________________.
A. Risk identification
B. A trigger
C. An anonymous trigger
D. The Delphi Technique
13. Alice is a project manager for her organization, and she’s working with
the project team to identify project risks and rank them by impact and
probability. Which risk analysis technique provides the project manager
with a risk ranking?
A. Quantifiable
B. Qualitative
C. The utility function
D. SWOT analysis
14. A table of risks, their probabilities, impacts, and numbers representing
the overall risk scores is called a ____________________________.
A. Risk table
B. Probability-impact matrix
C. Quantitative matrix
D. Qualitative matrix
15. You are presented with the following table:
What is the EMV for Risk Event 3?
A. $135
B. –$300
C. $45
D. –$135
16. You are presented with the following table:
Based on the preceding numbers, what is the amount needed for the
contingency fund?
A. Unknown with this information
B. $249,000
C. $117,150
D. $15,750
17. The water sanitation project manager has determined that the risks
associated with handling certain chemicals are too high. He has decided
to allow someone else to complete this portion of the project. So he has
outsourced the handling and installation of the chemicals and filter
equipment to an experienced contractor. This is an example of which of
the following?
A. Avoidance
B. Acceptance
C. Mitigation
D. Transference
18. A project manager and the project team are actively monitoring the
pressure gauge on a piece of equipment. Sarah, the engineer,
recommends a series of steps to be implemented should the pressure
rise above 80 percent. The 80 percent mark represents what?
A. An upper control limit
B. The threshold
C. Mitigation
D. A workaround
19. You are presented with the following table:
What would Risk Event 6 be, based on the following information:
Marty is 60 percent certain that he can get the facility needed for
$45,000, which is $7,000 less than what was planned for.
A. .60, $45,000, $27,000
B. .60, $52,000, $31,200
C. .60, $7,000, $4,200
D. .60, –$7,000, –$4,200
20. You are the project manager for your organization, and you’re working
with the project team to identify the project risks, rank the risks on
probability and impact, and then create a risk contingency reserve. As
part of these processes, you want to explore multiple scenarios of risk
events in the project, so you’re utilizing different tools to analyze the
project risks. Based on this information, which of the following can
determine multiple scenarios, given various risks and the probability of
their impact?
A. A decision tree
B. The Monte Carlo technique
C. A Pareto chart
D. A Gantt chart