Project Risk Management: Unit 7 and 8 Quiz

What is the main objective of negative risk management?

To maximize opportunities
To identify and analyze unknown risks
To minimize threats that are potential project problems (correct)
To create a contingency plan for all risks

What type of risk is an environmental permit delay?

Positive risk
Negative risk (correct)
Unknown risk
Known risk

Which of the following is an example of a project condition?

Limited expertise available
Project task assumption
Company has multiple projects going on at once (correct)
Environmental permit delay

What is the first step in the PMBOK risk management process?

Plan Risk Management (A) Signup and view all the answers

What is the main objective of positive risk management?

To maximize opportunities where good things happen (D) Signup and view all the answers

What happens when a risk event occurs?

It becomes a project issue (B) Signup and view all the answers

What is the primary goal of the Plan Risk Management process?

To develop a risk management plan (A) Signup and view all the answers

What is the purpose of the Probability Scale in risk management?

To assign a numerical value to the likelihood of a risk occurring (D) Signup and view all the answers

What is the output of the Plan Risk Management process that provides a framework for categorizing risks?

Risk Breakdown Structure (RBS) (A) Signup and view all the answers

What is the purpose of the Risk Breakdown Structure (RBS) in risk management?

To break down risk categories into specific components related to the project (C) Signup and view all the answers

What is the output of the Plan Risk Management process that outlines the different impact levels for time and budget?

Guidelines for determining the potential impact (A) Signup and view all the answers

How often should risk assessment be performed, according to the Plan Risk Management process?

On a regular basis, as outlined in the risk management plan (D) Signup and view all the answers

What is the purpose of applying the Project Impact Scale in the Risk Register?

To identify high impact high probability risks (D) Signup and view all the answers

What is the expected outcome of Quantitative Analysis in risk management?

To quantify the risks using Expected Monetary Value (EMV) (C) Signup and view all the answers

What is the primary purpose of gathering information from people who know about the risks?

To get a three-point cost estimate on the impact of each risk (A) Signup and view all the answers

What is the next step after gathering information from people who know about the risks?

Analyze the information using Sensitivity Analysis and EMV (B) Signup and view all the answers

What is the formula to calculate the Expected Monetary Value (EMV)?

EMV = Probability x Impact (C) Signup and view all the answers

What is the benefit of using the Expected Monetary Value (EMV) in risk management?

It provides a way to quantify the risks (D) Signup and view all the answers

What is the primary goal of monitoring and controlling risks in a project?

To ensure project decisions are based on current information about overall project risk exposure (D) Signup and view all the answers

Which of the following is a positive response to risk?

Enhancing the opportunity (A) Signup and view all the answers

What is the purpose of risk reassessment in the risk management process?

To identify new risks (B) Signup and view all the answers

What is the primary focus of risk management?

Identifying and analyzing risks (B) Signup and view all the answers

What is the purpose of variance and trend analysis in risk management?

To analyze the impact of risks that have happened (D) Signup and view all the answers

What is the purpose of status meetings in risk management?

To monitor and control risks throughout the project (C) Signup and view all the answers

What is a key characteristic of a project risk?

It is an uncertain event or condition that may impact the project (A) Signup and view all the answers

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

To identify and plan for potential risks (A) Signup and view all the answers

What is the term for the process of evaluating risks based on their likelihood and impact?

Quantitative Analysis (B) Signup and view all the answers

What is the term for a risk that has a positive impact on the project?

Opportunity (C) Signup and view all the answers

What is the purpose of a risk register?

To document and track identified risks (B) Signup and view all the answers

What is the term for the process of transferring a risk to another party?

Risk Transfer (A) Signup and view all the answers