Project Risk Management
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Questions and Answers

When should risks be identified during the project life cycle?

  • Continuously throughout the project (correct)
  • Only during the execution phase
  • Only during the planning phase
  • Only at the beginning
  • What is a benefit of identifying risks early in the project life cycle?

  • Reduced flexibility in managing risks
  • Delays project timelines
  • Highlights gaps in project scope (correct)
  • Increased project costs
  • Who has the ultimate responsibility for identifying risks in a project?

  • Project manager
  • External consultants
  • Project team
  • Project sponsor (correct)
  • What tool or technique involves generating ideas from a group to identify risks?

    <p>Brainstorming</p> Signup and view all the answers

    In the context of risk identification, what does 'influence diagrams' refer to?

    <p>Diagrams showing risk dependencies</p> Signup and view all the answers

    What is a key element of a risk management plan?

    <p>Risk identification methods</p> Signup and view all the answers

    What type of risk dependency occurs when bad weather leads to reduced productivity and equipment breakdown?

    <p>Dependent risks</p> Signup and view all the answers

    Which type of risk is associated with market value fluctuations?

    <p>Speculative risks</p> Signup and view all the answers

    What type of risk is typically insurable?

    <p>Pure risks</p> Signup and view all the answers

    What is the primary purpose of a risk register in risk management?

    <p>To list all identified risks</p> Signup and view all the answers

    What is a Risk Breakdown Structure (RBS)?

    <p>A hierarchical structure of potential risk sources</p> Signup and view all the answers

    Which level of the RBS provides the most detailed definition of sources of risk?

    <p>Level 3</p> Signup and view all the answers

    What is the primary characteristic of a risk event in the context of project risk management?

    <p>An uncertain occurrence that may impact project objectives</p> Signup and view all the answers

    What is an example of an 'effect' in the context of project risk management?

    <p>Financial loss due to a project delay</p> Signup and view all the answers

    What is the primary reason for identifying the cause of a risk event?

    <p>To manage the event proactively</p> Signup and view all the answers

    Which component of a risk event answers the question, 'What can go wrong?'

    <p>Event</p> Signup and view all the answers

    What is the primary benefit of understanding the relationships between risks in a project?

    <p>Facilitates more effective risk management</p> Signup and view all the answers

    What type of risk dependency involves multiple risks occurring together to affect one or more risks?

    <p>Parallel risks</p> Signup and view all the answers

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