Module 9 - Chat GBT PDF

1. What is the first step in the risk management process? - A) Risk response - B) Risk identification - C) Risk monitoring - D) Risk assessment Correct Answer: B 2. What is a risk in project management? - A) A guaranteed event that impacts the project negatively - B) An uncertain event that can ha...

1. What is the first step in the risk management process? - A) Risk response - B) Risk identification - C) Risk monitoring - D) Risk assessment Correct Answer: B 2. What is a risk in project management? - A) A guaranteed event that impacts the project negatively - B) An uncertain event that can have a positive or negative effect on project objectives - C) An external factor that will always delay the project - D) An internal team dispute Correct Answer: B 3. What is the purpose of a Risk Breakdown Structure (RBS)? - A) To categorize project risks for better management - B) To develop the project schedule - C) To monitor resource allocation - D) To define project quality standards Correct Answer: A 4. What type of risk is described as an uncertain event that can positively affect project objectives? - A) Threat - B) Opportunity - C) Constraint - D) Risk event Correct Answer: B 5. What is the definition of a threat in project management? - A) A positive risk event - B) An identified issue within the project scope - C) A negative risk event - D) A constraint on project deliverables Correct Answer: C 6. Which document is used to capture all identified risks and their details? - A) Project charter - B) Risk register - C) Stakeholder analysis - D) Work Breakdown Structure Correct Answer: B 7. What is the main difference between qualitative and quantitative risk analysis? - A) Qualitative focuses on numerical data, while quantitative uses descriptive data - B) Qualitative prioritizes risks based on impact and likelihood, while quantitative uses numerical techniques to assess them - C) Quantitative analysis is always more accurate - D) Qualitative is optional, while quantitative is mandatory Correct Answer: B 8. Which risk response strategy is used when a risk is outside the project manager's control? - A) Mitigate - B) Accept - C) Escalate - D) Avoid Correct Answer: C 9. What is the purpose of using a probability and impact matrix? - A) To define risk thresholds - B) To categorize risks by stakeholder impact - C) To prioritize risks based on their probability of occurrence and potential impact - D) To allocate project resources Correct Answer: C 10. Which risk response strategy involves transferring risk ownership to a third party? - A) Accept - B) Mitigate - C) Transfer - D) Escalate Correct Answer: C 11. What is a contingent response in project risk management? - A) A strategy that is implemented immediately upon identifying a risk - B) A predefined action taken if an identified risk occurs - C) A method to avoid risk altogether - D) A plan to escalate the issue to stakeholders Correct Answer: B 12. Which of the following is a proactive risk response strategy for opportunities? - A) Mitigate - B) Transfer - C) Exploit - D) Accept Correct Answer: C 13. What type of contract provides the least risk to the buyer? - A) Fixed Price - B) Cost Plus Fixed Fee - C) Time and Materials - D) Cost Plus Incentive Fee Correct Answer: A 14. What is the main advantage of a Cost Plus Award Fee (CPAF) contract? - A) Minimal risk for the buyer - B) Greater flexibility in defining the scope of work - C) Incentives for the seller to exceed performance standards - D) Fixed costs for all project activities Correct Answer: C 15. What is the primary purpose of the Procurement Management Plan? - A) To document project purchasing decisions and specify the procurement approach - B) To identify project risks - C) To outline project timelines and schedules - D) To manage stakeholder engagement Correct Answer: A 16. Which tool is used to evaluate seller responses and determine the best fit for the project? - A) Stakeholder analysis - B) Weighted scoring model - C) Risk breakdown structure - D) Work breakdown structure Correct Answer: B 17. What is a Request for Proposal (RFP) used for in procurement? - A) To hire project managers - B) To obtain general information about vendors - C) To solicit detailed proposals from potential sellers on how they will fulfill project requirements - D) To initiate stakeholder engagement Correct Answer: C 18. What is an advantage of using a fixed price contract? - A) The seller assumes the majority of the risk - B) The buyer has complete control over project changes - C) The buyer shares the risk with the seller - D) The project scope can be changed at any time Correct Answer: A 19. What is the purpose of a make-or-buy analysis? - A) To determine whether to outsource a project task or complete it internally - B) To decide the project schedule - C) To assess stakeholder interest in the project - D) To allocate project funding Correct Answer: A 20. What is a characteristic of Time and Material (T&M) contracts? - A) The scope and cost are fixed - B) The total value of the contract depends on the quantities needed to complete the work - C) The seller assumes all risk - D) The buyer is paid a fixed fee for the work completed Correct Answer: B 21. What does a procurement management plan typically include? - A) Project schedule - B) Vendor risk assessments - C) High-level budget estimate for procurement - D) Stakeholder register Correct Answer: C 22. Which risk response strategy involves reducing the probability or impact of a risk? - A) Mitigate - B) Transfer - C) Accept - D) Enhance Correct Answer: A 23. What is a fallback plan? - A) A strategy to address low-priority risks - B) A set of actions available if the primary risk response plan fails - C) A method for escalating project risks - D) A document listing potential vendors Correct Answer: B 24. What type of risk is known as a “positive risk event”? - A) Threat - B) Opportunity - C) Constraint - D) Limitation Correct Answer: B 25. What is the purpose of a bidder conference? - A) To finalize a project contract - B) To ensure all potential sellers have a clear understanding of the requirements - C) To determine project costs - D) To identify stakeholders Correct Answer: B 26. What does “risk appetite” refer to in a project? - A) The project's ability to accept changes - B) The organization's tolerance for risk exposure - C) The number of risks identified in the risk register - D) The stakeholders' willingness to participate Correct Answer: B 27. Which risk response is appropriate when the project manager decides to leave the risk impact as is? - A) Avoid - B) Mitigate - C) Transfer - D) Accept Correct Answer: D 28. What type of analysis is performed to group risks by their causes? - A) SWOT analysis - B) Root cause identification - C) Risk breakdown analysis - D) Quantitative risk analysis Correct Answer: B 29. What is the primary purpose of a risk register? - A) To document stakeholder responsibilities - B) To track the probability and impact of risks throughout the project - C) To allocate project funding - D) To identify and assign project tasks Correct Answer: B 30. What is the best procurement strategy for a project where the buyer wants to transfer risk to the seller? - A) Cost reimbursable - B) Time and Materials - C) Fixed Price - D) Lump sum incentive fee Correct Answer: C 31. Which procurement document provides detailed specifications for items to be purchased? - A) RFI (Request for Information) - B) RFQ (Request for Quote) - C) RFP (Request for Proposal) - D) WBS (Work Breakdown Structure) Correct Answer: B 32. Which contract type is most suitable for a project where costs are unpredictable? - A) Firm Fixed Price (FFP) - B) Cost Plus Fixed Fee (CPFF) - C) Time and Materials (T&M) - D) Fixed Price Incentive Fee (FPIF) Correct Answer: C 33. In risk management, what is the role of monitoring risks? - A) To identify stakeholders - B) To assess the project's schedule - C) To track risk events and ensure response plans are executed as needed - D) To prioritize project tasks Correct Answer: C 34. What is the purpose of risk thresholds in a project? - A) To assign risk response strategies - B) To establish the level of risk that the organization is willing to accept - C) To determine project resource allocation - D) To finalize the risk register Correct Answer: B 35. What type of analysis is used to calculate the probability and impact of a risk? - A) Qualitative risk analysis - B) Quantitative risk analysis - C) Root cause analysis - D) SWOT analysis Correct Answer: B 36. What type of contract includes incentives for meeting specific objectives? - A) Time and Materials - B) Firm Fixed Price - C) Fixed Price Incentive Fee (FPIF) - D) Cost Plus Fixed Fee Correct Answer: C 37. Which risk response involves sharing ownership of the risk with another party? - A) Avoid - B) Share - C) Transfer - D) Accept Correct Answer: B 38. What is a primary disadvantage of a Cost Plus Percentage Fee (CPPF) contract? - A) The seller assumes all risk - B) It encourages increased costs without incentive for efficiency - C) The scope of work must be fixed - D) It offers no flexibility for price changes Correct Answer: B 39. What is a procurement audit used for? - A) To determine the cost of procurement activities - B) To identify lessons learned in the procurement process - C) To review project scope - D) To assess stakeholder satisfaction Correct Answer: B 40. Which type of procurement involves buying an off-the-shelf item? - A) Custom procurement - B) Time and Materials - C) Firm Fixed Price - D) Commercial procurement Correct Answer: D 41. What is the purpose of a “risk burndown chart”? - A) To allocate project funds to risks - B) To track the reduction of overall project risk exposure over time - C) To define the project schedule - D) To assign risk response strategies Correct Answer: B 42. What is a common method for deciding between make-or-buy? - A) Root cause analysis - B) Risk avoidance - C) Cost-benefit analysis - D) Monte Carlo simulation Correct Answer: C 43. In what scenario would a Cost Plus Incentive Fee (CPIF) be ideal? - A) When costs are stable and predictable - B) When the seller must be motivated to control costs - C) When no changes are anticipated - D) When the buyer wants to reduce risk Correct Answer: B 44. Which of the following is an example of a "risk trigger"? - A) A completed project task - B) A weather alert indicating that a storm is approaching - C) A fully implemented risk response - D) A delayed project milestone Correct Answer: B 45. What procurement method allows sellers to propose various solutions? - A) RFI (Request for Information) - B) RFQ (Request for Quote) - C) RFP (Request for Proposal) - D) SLA (Service Level Agreement) Correct Answer: C 46. What does a fallback plan ensure? - A) An immediate response to opportunities - B) Secondary actions if the primary risk response fails - C) A way to eliminate all risk from the project - D) Reduced project scope Correct Answer: B 47. What type of contract is best when the buyer wants to ensure a predictable cost? - A) Cost Plus Award Fee - B) Cost Plus Fixed Fee - C) Firm Fixed Price - D) Time and Materials Correct Answer: C 48. What is the definition of a residual risk? - A) A risk that has been fully mitigated - B) A risk that remains after a risk response is implemented - C) A new risk that emerges during project execution - D) A risk that is escalated to higher management Correct Answer: B 49. What type of contract would most likely be used for government contracts involving unknown quantities? - A) Firm Fixed Price - B) Time and Materials - C) Cost Plus Percentage Fee - D) Lump Sum Incentive Fee Correct Answer: B 50. What is the primary purpose of claims administration in procurement? - A) To prevent disputes between the buyer and seller - B) To manage contested charges and unresolved issues - C) To negotiate new contracts with vendors - D) To document project scope changes Correct Answer: B