Project Risk Management

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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?

Brainstorming Signup and view all the answers

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

Diagrams showing risk dependencies Signup and view all the answers

What is a key element of a risk management plan?

Risk identification methods Signup and view all the answers

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

Dependent risks Signup and view all the answers

Which type of risk is associated with market value fluctuations?

Speculative risks Signup and view all the answers

What type of risk is typically insurable?

Pure risks Signup and view all the answers

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

To list all identified risks Signup and view all the answers

What is a Risk Breakdown Structure (RBS)?

A hierarchical structure of potential risk sources Signup and view all the answers

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

Level 3 Signup and view all the answers

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

An uncertain occurrence that may impact project objectives Signup and view all the answers

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

Financial loss due to a project delay Signup and view all the answers

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

To manage the event proactively Signup and view all the answers

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

Event Signup and view all the answers

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

Facilitates more effective risk management Signup and view all the answers

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

Parallel risks Signup and view all the answers