Tutorial (10)
Risk Management
1. Which of the following processes produces a Risk Register?
A. Perform Quantitative Risk Analysis
B. Plan Risk Management
C. Perform Qualitative Risk Analysis
D. Identify Risks
2. The Risk Register contains details of all identified risks and current status. It is a
document containing the results of:
A. Plan Risk Responses
B. Identify Risks and Control Risks
C. Control Risks and Plan Risk Responses
D. Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis and Plan Risk
Responses
3. You are in a meeting with your team, early in the project, and would like to see
how to use the company power to mitigate threats as well as how to benefit form
opportunities to overcome company weaknesses. What tool should be used?
A. SWOT Analysis
B. Interviewing
C. Delphi Technique
D. Brainstorming
4. All of the following are factors in the assessment of project risk EXCEPT:
A. Time Risk occurrence.
B. Risk probability.
C. Level of impact.
D. Insurance premiums.
5. If a project has a 60 percent chance of a US $100,000 profit and a 40 percent
chance of a US $100,000 loss, the expected monetary value for the project is:
A. $100,000 profit.
B. $60,000 loss.
C. $20,000 profit.
D. $40,000 loss.
Risk Management Page 1
6. Which of the following risk events is MOST likely to interfere with attaining a project's
schedule objective?
A. Delays in obtaining required approvals
B. Substantial increases in the cost of purchased materials
C. Contract disputes that generate claims for increased payments
D. Slippage of the planned post-implementation review meeting
7. If a risk has a 20 percent chance of happening in a given month, and the project is
expected to last five months, what is the probability that this risk event will occur
during the fourth month of the project?
A. 4 percent
B. 20 percent
C. 60 percent
D. 80 percent
8. What should be done with risks on the watch list?
A. Document them for historical use on other projects.
B. Document them and revisit during project monitoring & controlling.
C. Document them and set them aside because they are already covered in
your contingency plans.
D. Document them and give them to the customer.
9. Purchasing insurance is BEST considered an example of risk:
A. Mitigation.
B. Transfer.
C. Acceptance.
D. Avoidance.
10. A project manager has just finished the risk response plan for a US $387,000
engineering project. Which of the following should he probably do NEXT?
A. Determine the overall risk rating of the project.
B. Begin to analyze the risks that show up in the project drawings.
C. Add work packages to the project work breakdown structure.
D. Hold a project risk reassessment.
11. You’re managing a construction project. There is a 30% chance that weather will
cause a three day delay, costing $12,000. There is also a 20% chance that the price
of your building materials will drop, which will save $5,000. What’s the total EMV for
both of these?
A. –$3,600
B. $1,000
C. –$2,600
D. $4,600
Risk Management Page 2
12. Mazin is the project manager of a large software project. When it’s time to identify
risks on his project, he contacts a team of experts and ask them to come up with a
list and send it in secretly. What technique is Mazin using?
A. SWOT
B. Ishikawa diagramming
C. Delphi
D. Brainstorming
13. Risks that are caused by the response to another risk are called:
A. Residual risks
B. Secondary risks
C. Cumulative risks
D. Mitigated risks
14. A construction project manager has a meeting with the team leader, who tells him
that there’s a good chance that a general strike will delay the project. They
brainstorm to try to find a way to handle it, but in the end decide that if there’s a
strike, there is no useful way to minimize the impact to the project. This is an
example of which risk response strategy?
A. Mitigate
B. Avoid
C. Transfer
D. Accept
15. In the middle of your project, your procurement officer informs you that a supplier
that you depend on has lost the contract off supplying a critical part from
manufacturer. You check your risk register and discover that this risk was not
identified. What’s the BEST way to handle this situation?
A. Check the Probability and Impact matrix
B. Perform Quantitative and Qualitative Risk Analysis
C. Recommend preventive actions
D. Recommend corrective actions
Risk Management Page 3