Chapter 11: Project Risk Management
True / False
1. Risks can have both negative and positive effects on meeting project objectives.
a.
True
b.
False
True
1
Difficulty: Easy
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The Importance Of Project Risk Management
Bloom’s: Knowledge
2. One possible response to managing negative risk it to accept the potential effects from the risk.
a.
True
b.
False
True
lessen, change or accept the potential effects of risk on their projects.
1
Difficulty: Easy
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The Importance Of Project Risk Management
Bloom’s: Knowledge
3. A risk-seeking person prefers outcomes that are more uncertain and is often willing to pay a penalty to take risks.
a.
True
b.
False
True
willing to pay a penalty to take risks.
1
Difficulty: Moderate
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The Importance Of Project Risk Management
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4. Unknown risks can be managed proactively.
a.
True
b.
False
False
1
Difficulty: Moderate
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The Importance Of Project Risk Management
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5. The last step in project risk management is deciding how to address this knowledge area for a particular project by
performing risk management planning.
a.
True
b.
False
False
knowledge area for a particular project by performing risk management planning.
1
Difficulty: Easy
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The Importance Of Project Risk Management
Bloom’s: Comprehension
6. Contingency plans are predefined actions that the project team will take if an identified risk event occurs.
a.
True
b.
False
True
1
Difficulty: Moderate
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Common Sources Of Risk On IT Projects
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7. Brainstorming is a systematic, interactive forecasting procedure based on independent and anonymous input regarding
future events.
Chapter 11: Project Risk Management
a.
True
b.
False
False
1
Difficulty: Moderate
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Bloom’s: Comprehension
8. The psychology literature shows that individuals, working alone, produce fewer ideas than the same individuals
produce through brainstorming in small, face-to-face groups.
a.
True
b.
False
False
1
Difficulty: Moderate
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Identifying Risks
Bloom’s: Knowledge
9. The Delphi technique is a systematic, interactive forecasting procedure based on independent and anonymous input
regarding future events.
a.
True
b.
False
True
1
Difficulty: Moderate
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10. Risk events refer to specific, certain events that may occur to the detriment or enhancement of the project.
a.
True
b.
False
False
enhancement of the project.
1
Difficulty: Moderate
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Identifying Risks
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11. A probability/impact matrix or chart lists the relative probability of a risk occurring on one side of a matrix or axis on
a chart and the relative impact of the risk occurring on the other.
a.
True
b.
False
True
1
Difficulty: Moderate
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Performing Qualitative Risk Analysis
Bloom’s: Knowledge
12. Top Ten Risk Item Tracking is a quantitative risk analysis tool.
a.
True
b.
False
False
Feedback: Top Ten Risk Item Tracking is a qualitative risk analysis tool.
1
Difficulty: Moderate
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Performing Qualitative Risk Analysis
Identifying Risks
Bloom’s: Knowledge
Chapter 11: Project Risk Management
13. The Microsoft Solution Framework (MSF) includes a risk management model that includes developing and
monitoring a top-ten master list of risks.
a.
True
b.
False
True
Microsoft uses for managing projects.
1
Difficulty: Moderate
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Performing Qualitative Risk Analysis
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14. Quantitative risk analysis need not be done for projects that are large and complex.
a.
True
b.
False
True
1
Difficulty: Moderate
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Performing Quantitative Risk Analysis
Bloom’s: Comprehension
15. The lower the earned monetary value calculation for a project, the chances of project success is higher.
a.
True
b.
False
False
1
Difficulty: Moderate
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16. The Monte Carlo analysis can predict the probability of finishing by a certain date or the probability that the cost will
be equal to or less than a certain value.
a.
True
b.
False
True
1
Difficulty: Moderate
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Bloom’s: Comprehension
17. Identified risks may not materialize, or their probabilities of occurrence or loss may diminish.
a.
True
b.
False
True
1
Difficulty: Moderate
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18. The risk register can be created with a simple Microsoft Word or Excel file.
a.
True
b.
False
True
part of a more sophisticated database.
1
Difficulty: Easy
Performing Quantitative Risk Analysis
19. Risk utility rises at a decreasing rate for a _____ person.
risk-seeking
b.
risk-averse
risk-neutral
d.
risk-indifferent
b
satisfaction from the risk, or has lower tolerance for the risk.
1
Difficulty: Moderate
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The Importance Of Project Risk Management
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20. Those who are _____ have a higher tolerance for risk, and their satisfaction increases when more payoff is at stake.
risk-seeking
b.
risk-averse
risk-neutral
d.
risk-indifferent
1
Difficulty: Moderate
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The Importance Of Project Risk Management
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21. A _____ person achieves a balance between risk and payoff.
risk-seeking
b.
risk-averse
risk-fearing
d.
risk-neutral
d
1
Difficulty: Moderate
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Using Software To Assist In Project Risk Management
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Multiple Choice
22. _____ involves deciding how to approach and plan the risk management activities for the project.
Identifying risks
b.
Planning risk management
Performing qualitative risk analysis
d.
Performing quantitative risk analysis
Difficulty: Easy
INFO.SCHW.14.77 – LO: 11-1
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The Importance Of Project Risk Management
Bloom’s: Knowledge
23. The degree of uncertainty an entity is willing to take on in anticipation of a reward is
risk appetite
b.
risk tolerance
risk utility
d.
unknown risk
tolerance is the maximum acceptable deviation an entity is willing to accept.
Difficulty: Moderate
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The Importance Of Project Risk Management
Bloom’s: Knowledge
24. _____ involves determining which risks are likely to affect a project and documenting the characteristics of each.
Identifying risks
b.
Planning risk management
Performing qualitative risk analysis
d.
Performing quantitative risk analysis
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The Importance Of Project Risk Management
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25. _____ involves prioritizing risks based on their probability and impact of occurrence.
Performing qualitative risk analysis
b.
Identifying risks
Planning risk responses
d.
Performing quantitative risk analysis
Difficulty: Moderate
INFO.SCHW.14.77 – LO: 11-1
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The Importance Of Project Risk Management
Bloom’s: Knowledge
26. _____ involves numerically estimating the effects of risks on project objectives.
Performing qualitative risk analysis
b.
Planning risk responses
Identifying risks
d.
Performing quantitative risk analysis
Difficulty: Moderate
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The Importance Of Project Risk Management
Bloom’s: Knowledge
27. _____ involves taking steps to enhance opportunities and reduce threats to meeting project objectives.
Performing quantitative risk analysis
b.
Planning risk responses
Controlling risk
d.
Performing qualitative risk analysis
Difficulty: Moderate
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The Importance Of Project Risk Management
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28. _____ involves monitoring identified and residual risks, identifying new risks, carrying out risk response plans, and
evaluating the effectiveness of risk strategies throughout the life of the project.
Performing quantitative risk analysis
b.
Planning risk responses
Controlling risk
d.
Performing qualitative risk analysis
1
Difficulty: Moderate
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The Importance Of Project Risk Management
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29. _____ are predefined actions that the project team will take if an identified risk event occurs.
Secondary risks
b.
Workarounds
Contingency plans
d.
Management reserves
identified risk event occurs.
1
Difficulty: Moderate
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Planning Risk Management
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30. Unenforceable conditions or contract clauses and adversarial relations are risk conditions associated with the project
_____ management knowledge area.
integration
b.
quality
procurement
d.
human resources
1
Difficulty: Moderate
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31. _____ is a fact-finding technique that can be used for collecting information in face-to-face, phone, e-mail, or instant-
messaging discussions.
Brainstorming
b.
Monte Carlo analysis
The Delphi technique
d.
Interviewing
d
1
Difficulty: Moderate
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Identifying Risks
Bloom’s: Knowledge
32. A(n) _____ represents decision problems by displaying essential elements, including decisions, uncertainties,
causality, and objectives, and how they influence each other.
risk breakdown structure
b.
influence diagram
process flow chart
d.
work breakdown structure
b
1
Difficulty: Moderate
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Identifying Risks
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33. The _____ lists the relative probability of a risk occurring and the relative impact of the risk occurring.
Top Ten Risk Item Tracking chart
b.
requirements traceability matrix
probability/impact matrix
d.
expectations management matrix
1
Difficulty: Moderate
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Bloom’s: Knowledge
34. _____ are/is a qualitative risk analysis tool that maintains an awareness of risks throughout the life of a project in
addition to identifying risks.
SharePoint portal
b.
Probability/impact matrices or charts
Expectations management matrix
d.
Top Ten Risk Item Tracking
d
1
Difficulty: Moderate
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Performing Qualitative Risk Analysis
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35. Identifying risks is a subprocess of the _____ process of project risk management.
planning
b.
executing
monitoring and controlling
d.
closing
management.
1
Difficulty: Easy
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The Importance Of Project Risk Management
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36. Performing qualitative and quantitative risk analyses are subprocesses of the _____ process of project risk
management.
planning
b.
executing
monitoring and controlling
d.
closing
1
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Performing Quantitative Risk Analysis
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37. A(n) _____ is a diagramming analysis technique used to help select the best course of action in situations in which
future outcomes are uncertain.
decision tree
b.
activity-on-arrow
workaround
d.
backward pass
course of action when future outcomes are uncertain. A common application of decision tree
1
Difficulty: Moderate
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Performing Quantitative Risk Analysis
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38. _____ analysis simulates a model’s outcome many times to provide a statistical distribution of the calculated results.
Sensitivity
b.
Systems
Monte Carlo
d.
NPV
statistical distribution of the calculated results.
1
Difficulty: Moderate
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Performing Quantitative Risk Analysis
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39. What is the first step in a Monte Carlo analysis?
a.
Determine the probability distribution of each variable.
b.
For each variable, such as the time estimate for a task, select a random value based on the probability
distribution for the occurrence of the variable.
c.
Assess the range for the variables being considered.
d.
Run a deterministic analysis or one pass through the model using the combination of values selected for each
one of the variables.
most likely, optimistic, and pessimistic estimates for the variables in the model.
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The Importance Of Project Risk Management
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