Chapter 10 - Project Risk Management

Front 1

TRUE/FALSE:

Project risk involves understanding potential problems that might occur on the project and how they might impede project success.

Back 1

True.

Front 2

TRUE/FALSE:

Qualitative risk analysis involves measuring the probability and consequences of risks and estimating their effects on project objectives.

Back 2

False.

Front 3

TRUE/FALSE:

Quantitative risk analysis involves characterizing and analyzing risks and prioritizing their effects on project objectives.

Back 3

False.

Front 4

TRUE/FALSE:

A risk management plan documents the procedures for managing risk throughout the project.

Back 4

True.

Front 5

TRUE/FALSE:

Risk mitigation is increasing the impact of a risk event by decreasing the probability of its occurrence.

Back 5

False.

Front 6

TRUE/FALSE:

Contingency plans are predefined actions that the project team will take if an identified risk event occurs.

Back 6

True.

Front 7

TRUE/FALSE:

Fallback plans are developed for risks that have a low impact on meeting project objectives, and are put into effect if attempts to reduce the risk are not effective.

Back 7

False.

Front 8

TRUE/FALSE:

Delphi technique is to derive a consensus among a panel of experts who make predictions about future developments.

Back 8

True

Front 9

Top 10 risk item tracking is a quantitative risk analysis tool.

Back 9

False.

Front 10

Simulation is a qualitative risk analysis tool.

Back 10

False.

Front 11

The major processes of project risk management are: (4).

Back 11

1. Identify
2. Quantify
3. Develop response
4. Control

Front 12

A risk management plan should cover (3).

Back 12

1. Who is responsible for managing various areas of risk
2. How contingency plans will be implemented
3. How reserves will be allocated

Front 13

A risk management plan is a major component of the _________ plan.

Back 13

Project.

Front 14

Risk identification should be done ________________.

Back 14

On a regular basis throughout the project

Front 15

Risk management techniques should be used only on the following types of projects (3).

Back 15

1. Large projects
2. Complex projects
3. Small projects

(all projects)

Front 16

What 3 techniques can be used in analysis of risk in a project? (3)

Back 16

1. PERT
2. CPM
3. Monte Carlo

Front 17

What are the 3 important outputs of the risk response development process?

Back 17

1. Risk management plan
2. Contingency plan
3. Reserves

Front 18

Monte Carlo analysis is the basis for most schedule _________________________.

Back 18

simulations

Front 19

A project manager would use the ____________________ technique to derive a consensus among a panel of experts, to make predictions about future developments.

Back 19

Delphi

Front 20

In any well managed project, ____________________ risks will remain after all of the response strategies have been implemented.

Back 20

residual

Front 21

____________________ diagrams are used to represent decision problems by displaying essential elements, and how they influence each other.

Back 21

Influence

Front 22

Projects that have not done thorough risk management, will more than likely have a ____________________ project.

Back 22

Runaway

Front 23

Risk ____________________ is reducing the impact of a risk event by reducing the probability of its occurrence.

Back 23

mitigation

Front 24

Risk ____________________ is having a low tolerance for risk.

Back 24

averse

Front 25

If changes in project scope or quality occur, the project sponsor has ____________________ reserves that can be used to mitigate cost or schedule risk.

Back 25

contingency

Front 26

What are the most important success criteria for information technology projects, according to the Standish Group?

Back 26

User involvement, executive management support, and a clear statement of requirements.

Front 27

If a project has a 50 percent probability or making $100 and a 50 percent probability of making no money at all, what is its expected monetary value?

Back 27

$50

Front 28

What does risk mitigation mean? Provide an example of how to mitigate risk on a project.

Back 28

Risk mitigation means reducing the impact of a risk event by reducing its probability of occurrence. An example of mitigating risk on a project would be to assign a very experienced project manager to a project to mitigate the risk of poor management.