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25 Cards in this Set
- Front
- Back
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The two primary components of a risk are:
A. The event and the probability B. The probability and the impact C. The impact and the event D. The impact and the amount at stake |
B. The probability and the impact
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Risk constitutes a lack of knowledge _____.
A. Of future events B. About the environment C. About the estimates D. About the customer’s requirements |
A. Of future events
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Which of the following is not included in risk management?
A. Risk planning B. Risk Assessment C. Risk handling D. All of above are part of risk management |
D. All of above are part of risk management
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Proper risk management is reactive rather than proactive.
A. True B. False |
B. False
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If there’s a 40% chance of making $1 million and a 60% chance of losing $600,000, then the expected monetary outcome is.
A. <$400,000> B. <$40,000> C. $360,000 D. <$360,000> |
B. <$40,000>
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The process that identifies, evaluates, selects and implements one or more strategies to set risk at an acceptable level is:
A. Risk planning B. Risk assessment C. Risk handling D. Risk monitoring and control |
C. Risk handling
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An objective source for risk identification is:
A. Lessons learned files B. Program documentation evaluations C. Current performance data D. All of the above |
D. All of the above
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Brainstorming, assumption analysis and WBS decomposition are techniques used for:
A. Risk identification B. Risk assessment C. Risk monitoring and control D. Risk handling |
A. Risk identification
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Monte Carlo simulation is a technique used as part of:
A. Risk identification B. Risk assessment C. Risk monitoring and control D. Risk handling |
B. Risk assessment
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The probability-impact matrix is a technique used as part of:
A. Risk identification B. Risk assessment C. Risk monitoring and control D. Risk handling |
B. Risk assessment
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Nominal work groups and the Delphi Techniques are used as part of which risk management process?
A. Risk identification B. Risk assessment C. Risk monitoring and control D. Risk handling |
A. Risk identification
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An investor has a 25% chance of making $1000 if the stock market is good, and a 50% chance of making $600 if the market is average. The investor expects to lose $800 if the market is bad. The expected monetary value is:
A. $250 B. $350 C. <$250> D. <$400> |
B. $350
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Which of the following is not considered to be an insurable risk?
A. Direct property damage B. Indirect consequential loss C. Legal liability D. Inflation |
D. Inflation
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In which life cycle phase does the project manager have the greatest financial risk? (i.e. amount at state)
A. Initiation / Approval B. Planning C. Execution D. Closure |
D. Closure
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In which life cycle phase is the total project risk generally the least?
A. Initiation / Approval B. Planning C. Execution D. Closure |
D. Closure
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Assigning high, medium or low to a potential risk is part of:
A. Risk identification B. Quantitative risk assessment C. Qualitative risk assessment D. Risk response |
C. Qualitative risk assessment
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A technique that uses a series of probability distributions and then transforms them into various risks is called:
A. Probability estimating B. Monte Carlo simulation C. Estimating simulation D. Black box analysis |
B. Monte Carlo simulation
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Which risk handling mode is a project manager using if he / she throws out one of three designs for a new product?
A. Acceptance / Assumption B. Avoidance C. Control / mitigation D. Transfer |
B. Avoidance
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If a project manager believes in a reactive rather than proactive risk management approach, he / she is using:
A. Acceptance / Assumption B. Avoidance C. Control / mitigation D. Transfer |
A. Acceptance / Assumption
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If a project manager believes in a proactive rather than reactive risk management approach, he / she is using:
A. Acceptance / Assumption B. Avoidance C. Control / mitigation D. Transfer |
C. Control / mitigation
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If a project manager awards a firm-fixed price contract to a supplier, he / she is using:
A. Acceptance / Assumption B. Avoidance C. Control / mitigation D. Transfer |
D. Transfer
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Risk mitigation or control does not eliminate a risk but seeks to reduce it without altering the requirements.
A. True B. False |
A. True
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During risk monitoring and control, we focus first on the risk’s trigger rather than the risk itself.
A. True B. False |
A. True
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Earned value measurement is a technique suitable for risk monitoring and control.
A. True B. False |
A. True
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Risk and Knowledge are inversely related.
A. True B. False |
A. True
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