Risk

Front 1

List the six Risk Mgt processes and their associated process group.

Back 1

"Plan Risk Mgt (planning), Idenify Risks (planning), Perform Qualitative Risk Analysis(planning), Perform Quantitative Risk Analysis(planning), Plan Risk Responses(planning), Monitor and Control Risks (Monitoring and Controlling)"

Front 2

List the six Risk Mgt processes and their key outputs.

Back 2

"Plan Risk Mgt(Risk mgt plan); Identify Risk (risk register), Perform Qualitative Risk Analysis(Risk Register updates), Perform Quantitative Risk Analysis (Risk Register updates), Plan Risk Responses (Risk-related contract decisions); Monitor and Control risks (Risk register updates, change requests)"

Front 3

List 2 characteristics of risk that must be understood for the exam

Back 3

"1. Risk is related to an uncertain even; 2. A risk may affect the project for good or for bad. Although risk usually has negative connotations, it may well have an upside."

Front 4

What is done during the Plan risk mgt process?

Back 4

"Creating the risk mgt plan. The remaining five risk mgt processes are planned. How they will be conducted is documented in the risk mgt plan, which is typically general and high level in nature. You wil focus on how risk will be approached for the project"

Front 5

When is Plan Risk Mgt process performed?

Back 5

"Early on the project, usually before many planning processes are perforemd. The reason it takes place very early is that the results of this (anad other risk processes) can significantly influence decision mades about scope, time, cost, quality, and procurement."

Front 6

List the inputs to the Plan Risk Mgt process

Back 6

"Project Scope Statement, Cost Mgt Plan, Schedule Mgt plan, Communications Mgt Plan, Enterprise Environmental Factors, Organizational Process Assets"

Front 7

Significane of Project Scope Statement as an input to the Plan Risk Mgt process

Back 7

"The scope, schedule, and budget for a project almost always make up the areas of primary risk. The project scope statement, along with cost mgt plan, schedule mgt plan are brought into this process to help plan the risk approach."

Front 8

List the tools used for Plan Risk Mgt process

Back 8

Planning Meetings and Analysis: the approach is plotted out by meeting with all appropriate stakeholders. This is followed up with a careful analysis to determine the appropriate level of risk and the approach warranted on the project.

Front 9

List the Outputs of Plan Risk Mgt process.

Back 9

Risk Mgt Plan

Front 10

Significance of the Risk Mgt plan

Back 10

"It is the roadmap to the other five risk mgt process. If defines what level of risk will be considered tolerable for the project, how risk will be managed, and whol will be responsible for risk activities, the amounts of time and cost that will be allotted to risk activities, and how risk findings will be communicated. There is also a description of how risk will be categorized. RBS=risk breakdown structure, is a graphical, hierarchal decomposition u. We are breaking down the categories of risks and not the work. Note: we are not breaking down the actual risk. Instead, we are beaking down the categories of risks that we will evaluate. ie. risks splits into internal risks and external risks"

Front 11

Is Identify risks performed once in a project

Back 11

"no, multiple times"

Front 12

What is done during the identify risk process

Back 12

"Evaluates the project to identify which risks could impact the project and to understand the nature of these risk. Output is risk register, which is a list of all risks, their cuases, and nay possible responses to those risks that can be identified at this point in time. "

Front 13

When is Identify risk register performed

Back 13

"Early on , but may be necessary to perform this process multiple times throughout the project"

Front 14

List the inputs to identify risk process(no need to memorize)

Back 14

"Activity cost estimates, Activity Duration Estimates, Scope Baseline, Stakeholder Register, Cost Mgt Plan, Schedule Mgt Plan, Quality Mgt plan, Project Documents, Enterprise Environmental Factors, Org Process Assets,"

Front 15

"Significance of Activity Cost Estimates, Scope Baseline, Actuate Duration estimates as input to the Identify Risk Porocess"

Back 15

"These inputs document the understanding of the scope, schedule and budget. These inputs represent the typical areas of greatest project risk and should be reviewed carefully to see if they present risks to this particular project."

Front 16

Significance of project documentation as input to the Identify Risk process

Back 16

They contain info that may help identify the risks present on the project.

Front 17

List the tools used for the Identify Risk Process

Back 17

"Documentation Reviews, Information Gathering Techniques, Checklist Analysis, Assumptions Analysis, Diagramming Techniques, SWOT Analysis, Expert Judgement"

Front 18

Signifciance of Documentation Reviews as a tool for Identify Risks process

Back 18

"A documentation review is a review of all project documentation that exists to date. The documentation is reviewed for completeness, correctness and consistency. For instance, if the plan appear sketchy or quickly thrown together, that could identify a significant risk, especially if the project is of high importance."

Front 19

Signifciance of Information Gathering Techniques as a tool for Identify Risks process

Back 19

"The techniques most commonly discussed in the context of risk are: brainstorming, Delphi technique, expert reviews, and root cause identification."

Front 20

Signifciance of Checklist Analysis as a tool for Identify Risks process

Back 20

"Checklist analysis uses a Risk Breakdown Structure (RBS), either from this project or from a previous project, to check off items and ensure that all signifcant risks or categories are being evaluated. Although it may not be exhaustive, this tool provides structure to the Identify Risks process."

Front 21

Significance of Assumption Analysis as a tool for Identify Risks process

Back 21

"Assumptions should not only be documented, but they should be analyzed and challenged if necessary."

Front 22

Significance of Diagramming Technqiues as a tool for Identify Risks process

Back 22

"Ishikawa diagrams aka cause and effect diagram, fishbone, are one way to show how potential causes can lead to risks. Another diagramming method used to identify risks is influence diagrams. This category shows how one set of factors may influence another. For instance, late arrival of materials may not be a significant risk by itself, but it may influence other factors, such as trggering overtime work, or causing quality problems later on in the project due to inadequate time to perperly perform the work. Flowcharts are useful in identifying risk. Flow cahrts are graphical representations of complex process flows. They can break something very complex into an understandable diagram."

Front 23

Significance of SWOT analysis as a tool for Identify Risks proces

Back 23

"It’s a tool to measure each risk's strenghts, weakness, opportunies and threats. Each risk isplotted and the quandrant where the weakneess(usually internal) and threats (usually external) are hightest, and the quandrant where strengths(usually internal) and opportunities(usualy external) are hightest will represent the highest risk on the project. SWOT can give you another perspective on risk that will help you identify your most signifcant project risk factors."

Front 24

List the Outputs of the Identify risk process

Back 24

"Risk Register: provides a list of all identified risks on the project, what the possible reactions to the risks are, what the root causes are, and what categories the risks fall into. It is common to update the RBS with more specific info. The risk register may be updated throughout the project."

Front 25

What is done during the Perform Qualitative Risk Analysis process

Back 25

"It's usually done rapidly in order to determine which risks are the highest priority on the project. It takes each risk from the risk register and works to analyze the probability of occuring and the impact to the project if it did occur. By using the probability and impact matrix(PIM), a prioritization and ranking can be created, which is updated on the risk register."

Front 26

Why is the Perform Qualitative Risk Analysis process important

Back 26

It helps you rank and prioritize the risks so that you can put the right emphasis on the right risks. It helps to ensure that time and resources are spent in the right risk areas.

Front 27

When is the Perform Qualitative Risk Analysis process performed?

Back 27

"It's usually performed more than once on a project b/c 1. it can be performed relatively quickly; 2. It is normal for risks and their underlying characteristics to change over the life of the project, making it important to revisit often."

Front 28

List the inputs to the Perform Qualitative Risk Analysis process

Back 28

"Risk Register, Risk Mgt plan, Project Scope Statement, Organizational Process Assets"

Front 29

Significance of the Risk Mgt plan as an input to the Perform Qualitative Risk Analysis proces

Back 29

"The risk mgt plan should define the overall approach to risk on the project, including how much risk is acceptable and who will be responsible for carrying out the analysis of the risks."

Front 30

Where can I find info on who will be responsible for carrying out the analysis of the risks/

Back 30

Risk Mgt Plan

Front 31

List the Tools used for the Perform Qualitative Risk Analysis process

Back 31

"Risk Probability and Impact Assessment/Probability and Impact Matrix(PIM), Risk Data Quality Assessment, Risk Categorization, Risk Urgency Assessment, Expert Judgement"

Front 32

List the Outputs of Perform Qualitative Risk Analysis process

Back 32

"Risk Register Updates. The risk register was developed earlier in the Identify risk process. Now the rister is further competed with priority of the risks, the urgency of the risks, and the caategorization of the risk, & any trends that were noticed"

Front 33

Significance of Risk Probability and Impact Assessment/Probability and Impact matrix(PIM) as a tool in Perform Qualitative Risk Analysis process

Back 33

"Each risk on the risk register is evaluated ffor its likelihood of occuring and its potential impact on the project. Each of these two values is given a ranking(such as low, medium, high, or 1-10) and are multiplied together to get a risk score. This resulting score is used to set the priorities."

Front 34

Significance of Risk Data Quality Assessment as a tool for Perform Qualitative Risk Analysis process

Back 34

"The data used should be objectively evaluated to determine whether or not it is accurate and of acceptable quality. For instance, if you were evaluating weather risk for a construction project, you would need to evaluate the quality of the weather data you were using."

Front 35

Significance of Risk Urgency Assessment as a tool for Perform Qualitative Risk Analysis process

Back 35

"Urgency risks are those that cannot wait. As you are evaluating the risks, it is important to determine which risks are the most urgent, requiring immediate attention. For instance, if you determined that a building's structural support may be inadequate, that woould require immediae attention, while other risks, such as future weather threats, although equally important, might be less urgent"

Front 36

What is done during the Perform Quantitative Risk Analysis proces

Back 36

This process seeks to assign a projected value (quantify) the risks that have been ranked by the Perform Qualitative Risk Analysis. This value is typically specified in terms of costs and time.

Front 37

Why is the Perform Quantitative Risk Analysis process important

Back 37

"Without performing this process, the identified risk is less complete and useful"

Front 38

When is the Perform Quantitative Risk Analysis process performed?

Back 38

"This process relies on the prioritized list of risks from the Perform Qualitative Risk Analysis process. Therefore, it I usually performed right after the Perform Qualitative Risk Analysis; however, it may be performed at the same time"

Front 39

List the inputs to the perform Quantitative Risk Analysis process

Back 39

"Risk Register, Risk Mgt plan, Cost Mgt plan, Schedule Mgt plan, Org process Assets"

Front 40

Significance of Cost Mgt plan and Schedule Mgt plan as inputs to the Perform Quantitative Risk Analysis proces

Back 40

Cost and schedule are easily quantified.

Front 41

List the tools used for Perform Quantitative Risk Analysis process

Back 41

"Data Gathering and Representation Techniques, Probability Distributions, Quantitative Risk Analysis and Modeling Techniques, Expert Judgement"

Front 42

Significance of Data Gathering and Representation Techniques as a tool for the Perform Quantitatie Risk Analysis process

Back 42

"Interviewsing uses a structured interview to ask experts about the likelihood and impact of identified risks. After interviewing several experts, for instance, the pm might create pessimistic, optimistic, and realistic values associated with each risk."

Front 43

Significance of Probability Distributions as a tool for the Perform Quantitative Risk Analysis process

Back 43

They allow the pm to take a good look at the real probability of an event occuring and to make a rational decision about how tot approach the risk.

Front 44

Significance of Quantitative Risk Analysis and Modeling Techniques as a tool for the Perform Quantitative Risk Analysis process

Back 44

"Sensitivity Analysis: Analyze your project and determine how sensitive it is to risk. Whether the occurance of a risk event would ruin the project or just be an inconvenience; - Expected Monetary Value Analysis: Takes uncertain evants and assigns a most likely monetary value (ie. dollar amount). Usually calculated by using decision trees; - Decision Tree Analysis: Show probability adn arrive at a dollar amount associated with each risk; - Tornado Diagrams- named for the funnel shape of their bars, are one way to analyze project sensitivity to cost or other factors. A tornado diagram ranks the bars form greatest to least on the project so that the chart takes on a tornado shape, ie 10% in labor cost will effect development cost the most compared to other project costs; - Modeling and Simulation: Monte Carlo analysis, performed by computer, throws large numbers of scenarios at the schedule to see the impact of certain risk events. This technique wil sho you what is not always evident by simply looking at the schedule. It wil often identify tasks that may not appear inherently hight risk, but in the event they are delayed, the whole project may be adversely affected. "

Front 45

Sensitivity Analysis

Back 45

"tools of Quantitative Risk Analysis: Sensitivity Analysis: Analyze your project and determine how sensitive it is to risk. Whether the occurance of a risk event would ruin the project or just be an inconvenience; - Expected Monetary Value Analysis: Takes uncertain evants and assigns a most likely monetary value (ie. dollar amount). Usually calculated by using decision trees; - Decision Tree Analysis: Show probability adn arrive at a dollar amount associated with each risk; - Tornado Diagrams- named for the funnel shape of their bars, are one way to analyze project sensitivity to cost or other factors. A tornado diagram ranks the bars form greatest to least on the project so that the chart takes on a tornado shape, ie 10% in labor cost will effect development cost the most compared to other project costs; - Modeling and Simulation: Monte Carlo analysis, performed by computer, throws large numbers of scenarios at the schedule to see the impact of certain risk events. This technique wil sho you what is not always evident by simply looking at the schedule. It wil often identify tasks that may not appear inherently hight risk, but in the event they are delayed, the whole project may be adversely affected. "

Front 46

Expected Monetary Value Analysis

Back 46

"tools of Quantitative Risk Analysis: Sensitivity Analysis: Analyze your project and determine how sensitive it is to risk. Whether the occurance of a risk event would ruin the project or just be an inconvenience; - Expected Monetary Value Analysis: Takes uncertain evants and assigns a most likely monetary value (ie. dollar amount). Usually calculated by using decision trees; - Decision Tree Analysis: Show probability adn arrive at a dollar amount associated with each risk; - Tornado Diagrams- named for the funnel shape of their bars, are one way to analyze project sensitivity to cost or other factors. A tornado diagram ranks the bars form greatest to least on the project so that the chart takes on a tornado shape, ie 10% in labor cost will effect development cost the most compared to other project costs; - Modeling and Simulation: Monte Carlo analysis, performed by computer, throws large numbers of scenarios at the schedule to see the impact of certain risk events. This technique wil sho you what is not always evident by simply looking at the schedule. It wil often identify tasks that may not appear inherently hight risk, but in the event they are delayed, the whole project may be adversely affected. "

Front 47

Decision Tree Analysis

Back 47

"tools of Quantitative Risk Analysis: Sensitivity Analysis: Analyze your project and determine how sensitive it is to risk. Whether the occurance of a risk event would ruin the project or just be an inconvenience; - Expected Monetary Value Analysis: Takes uncertain evants and assigns a most likely monetary value (ie. dollar amount). Usually calculated by using decision trees; - Decision Tree Analysis: Show probability adn arrive at a dollar amount associated with each risk; - Tornado Diagrams- named for the funnel shape of their bars, are one way to analyze project sensitivity to cost or other factors. A tornado diagram ranks the bars form greatest to least on the project so that the chart takes on a tornado shape, ie 10% in labor cost will effect development cost the most compared to other project costs; - Modeling and Simulation: Monte Carlo analysis, performed by computer, throws large numbers of scenarios at the schedule to see the impact of certain risk events. This technique wil sho you what is not always evident by simply looking at the schedule. It wil often identify tasks that may not appear inherently hight risk, but in the event they are delayed, the whole project may be adversely affected. "

Front 48

Tornado Diagrams

Back 48

"tools of Quantitative Risk Analysis: Sensitivity Analysis: Analyze your project and determine how sensitive it is to risk. Whether the occurance of a risk event would ruin the project or just be an inconvenience; - Expected Monetary Value Analysis: Takes uncertain evants and assigns a most likely monetary value (ie. dollar amount). Usually calculated by using decision trees; - Decision Tree Analysis: Show probability adn arrive at a dollar amount associated with each risk; - Tornado Diagrams- named for the funnel shape of their bars, are one way to analyze project sensitivity to cost or other factors. A tornado diagram ranks the bars form greatest to least on the project so that the chart takes on a tornado shape, ie 10% in labor cost will effect development cost the most compared to other project costs; - Modeling and Simulation: Monte Carlo analysis, performed by computer, throws large numbers of scenarios at the schedule to see the impact of certain risk events. This technique wil sho you what is not always evident by simply looking at the schedule. It wil often identify tasks that may not appear inherently hight risk, but in the event they are delayed, the whole project may be adversely affected. "

Front 49

Modeling and Simulation

Back 49

"tools of Quantitative Risk Analysis: Sensitivity Analysis: Analyze your project and determine how sensitive it is to risk. Whether the occurance of a risk event would ruin the project or just be an inconvenience; - Expected Monetary Value Analysis: Takes uncertain evants and assigns a most likely monetary value (ie. dollar amount). Usually calculated by using decision trees; - Decision Tree Analysis: Show probability adn arrive at a dollar amount associated with each risk; - Tornado Diagrams- named for the funnel shape of their bars, are one way to analyze project sensitivity to cost or other factors. A tornado diagram ranks the bars form greatest to least on the project so that the chart takes on a tornado shape, ie 10% in labor cost will effect development cost the most compared to other project costs; - Modeling and Simulation: Monte Carlo analysis, performed by computer, throws large numbers of scenarios at the schedule to see the impact of certain risk events. This technique wil sho you what is not always evident by simply looking at the schedule. It wil often identify tasks that may not appear inherently hight risk, but in the event they are delayed, the whole project may be adversely affected. "

Front 50

List the outputs of Quantitative Risk Analysis process

Back 50

"Risk Register Updates. The risk register was developed earlier in the Identify risk process. Now the rister is further competed with cost and time, & any trends that were noticed"

Front 51

How can risk be beneficial? List examples.

Back 51

"Purchase lottery ticket, you are running the risk that you will win money, and that risk can be quantified. If you are constructing a building you plan for a certain amount of bad weather to impact the constructionschedule; however, you run the risk that the weather will be worse than anticipated as well as teh risk that the weather will be better than anticipated. Risk that a project will finish late, but also risk that the project will finish early"

Front 52

What is done during the Plan Risk responses process?

Back 52

"Create a detailed paln for managing the risk. It creates a plan fo rhow each risk will be handled. This plan is actionable, it assigns specific tasks and responsibilites to each team member"

Front 53

When is Plan Risk Responses process performed

Back 53

"Good thing about risk mgt is that there is an oreder. Plan Risk Mgt, Identify Risk, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, then Plan Risk Responses."

Front 54

List the inputs for Plan risk responses process

Back 54

"Risk Register, Risk Mgt plan, "

Front 55

List the Tolls for Plan risk responses process

Back 55

"Strategies for Negative Risks or Threats(Avoid, Transfrer, Mitigate, Accept), Strategies for Positive Risks or Opportunities(Exploit, Share, Enhcance, Accept), Contingent Response Strategies, Expert Judgement"

Front 56

Significance of Strategies for Negative Risks or Threats as tools for Plan Risk Responses process

Back 56

"Avoid: a software project may choose to avoid the risk associated with using a particular piece of cutting edge tech in favor o fusing a slower but more reliable tech; -Transfer: to transfer risk to another party is to make it their responsibilty. Contractual agreements and insurance are common ways to transfer risks; - Mitigate: Mitigating a risk is to maike it less. If you were concerned with weather damage to a construction project, you might choose to construct the building outside of rainy season; - Accept: acceptance my be the best strategy if the cost or impact of the other strategies(avoid, transfer, mitigte, etc) is too great"

Front 57

Significance of Strategies for Positive Risks or Threats as tools for Plan Risk Responses process

Back 57

"For positive risks, the pm wants to take steps to make them more likely. Exploit: Risk is uncertainty. For exploit, you are trying to remove any uncertainty. Example: if a positive risk of finishing the project early is identified , then adding enough people to ensure that the project is completed early would be an example of exploiting this risk; - Share: the project seeks to imporve their chances of the risk of occuring by working with another party. Example, if a defence contractro identifies a positive risk of getting a large order, they may determine that sharing that risk by partnering with another defense firm, or even a competitor my be acceptable; -Enhance: Requires that you first understand the underlying causes of the risk. By working to influence the underlying risk triggers, you can increase the likelihood of the risk occuring.; Accept"

Front 58

Significance of Contigent Response Strategies as a tool for the Plan Risk Responses process

Back 58

"A contingent response strategy is one where the projecct team may make one decision related to risk, but make that decision contingent upon other condiditions. For example, a project team may decide to mitigate a tech risk by hiring an outside firm with expertise in that tech, but that decsion might be contignet upon the ouside firm meeting intermdiate milestones related to that risk."

Front 59

List the outputs of plan risk responses process

Back 59

"Risk Register updates, risk-related contract decisions, pm plan updates, project document updates"

Front 60

Significance of Risk-Related Contract Decisions as an output of plan risk responses process

Back 60

"One of the tools for plan risk responses is to transfer risk to another party. This tool can often result in contractual agreements. Example, a company that has little experience in mission-critical software development may contract out that part of the project, but risk-related contract decsions would typoically accompany this decision. In this example, it might be appropriate to specify cost, time and performance tarets for the subcontracting software company to meet in order to receive full payment."

Front 61

When is Monitoring and Controlling risk performed?

Back 61

Continually

Front 62

List the inputs to Monitoring and Controlling Risk process

Back 62

"Risk Register, PM plan, Work Performance Information, Performance Reports"

Front 63

Significance of Work Performance Information as an input for the Monitoring and Controlling Risk process

Back 63

"Monitoring and controlling is all about comparing the plan to results. Work performance Info provides the results, status of delvierables"

Front 64

Significance of Performance Reports as an input for the Monitoring and Controlling Risk process

Back 64

"The Performance reports don't focus on what has been done but how it was done. Example, the Work Performance Info provides info on the status of deliverables, the performance reports focus on cost, time and quality performanc.Where the performance reports are concerned, the actual results are compared against the baselines to show how the project is performing against the plan."

Front 65

List the tools used for Monitoring and controlling risk process

Back 65

"Risk Reassessment, Risk Audits, Variance and trend analysis, Technical Performance Measurement, Reseruve Analysis, Status Meetings"

Front 66

Significance of Risk Assessment as a tool for Monitoring and Controlling Risk process

Back 66

"As you perform your project, your info about risk and nature of rsiks changes. You should reasess this info as often as necessry in order to make sure that the risk needs of the projects are current and accurate. "

Front 67

Significance of Risk Audits as a tool for Monitoring and Controlling Risk process

Back 67

"Risk audits are focused on overall risk mgt. In other words, they are more about top down process than they are about individual risks. Periodic risk audits evaluate how the risk mgt plan and the risk repsonse plan are working as the project progresses and also whether the risks that were identified and prioritized are actually occuring."

Front 68

Significance of Variance and Trend Analysis as a tool for Monitoring and Controlling Risk process

Back 68

"Variance analysis focuases on the differences between what was planned and what was executed. Trend analysis shows how performance is trending. A one time snapshot fo t cost may not cause conern, but a trend showing worsening cost performance my indicate that things are steadlily worsening and may indicate that a problem is imminent."

Front 69

Significance of Technical Performance Measurement as a tool for Monitoring and Controlling Risk process

Back 69

"Focuses on functionality, looking t how the project has met its goals for delivering the scope over time."

Front 70

Significance of Reserve Analysis as a tool for Monitoring and Controlling Risk process

Back 70

"The project's reserve (also called contingency) can apply to schedule or cost. Periodically, the project's reserve, whether cost or time, should be evaluated to ensure thtat it is sufficient to address the amount of risk the project expects to encounter."

Front 71

List the outputs of Monitoring and Controlling Risk process

Back 71

"Risk Register Updates, Organizational Process Assets Updates, Change Request, Pm Plan updates, Project Document Updates"

Front 72

"1. You are manaign the construction of a data center, but the location is an area highly prone to earthquakes. In order to deal with this risk, you have chosen a typoe of building and foundation that is particulary earthquatke resistant. This is an example of: A. Risk transfer. B. Risk avoidance. C Risk mitigation. D. Risk Acceptance"

Back 72

"C. You are taking steps to lessen the risk. 'B' incorrect because you would need to relocate in order to completely avoid the risk of earthquake. 'D' incorrect b/c you are not merely accepting the risk, you are taking steps to make it less severe."

Front 73

2. Your are evaluating the risk by trying to produce a risk score for each risk. This is an example of which tool? A. Monte Carlo analysis. B. PIM C. RACI D. Cause and Effect diagrams

Back 73

B. The probability impact matrix derives a risk score by multiplying the probability of the risk by its impact(both of these numbers are estimated). This resulting score may be used to help prioritize the risk register.

Front 74

"3. As poart of your project, you have identified a significant risk of cost overrun on a software component that is integral to the product. Which represents the BEST strategy in dealing with this risk. A. Outsource the software development. B. Insure the cost C. Double the estimate. D. Eliminate the need for this component"

Back 74

A. Outsourcing could allow you to cap the cost. 'B' wrong b/c costs for development such as this cannot be insured in a cost effective manner. 'C' is not correct because doubling the estimate does not deal with the root of the problem. It only changes the estimate. 'D' is wrong b/c you can't simply eliminate every high risk component in the real world.

Front 75

4. Planning meetings and analysis are used in which process? A. As poart of Manage Stakeholder Expectations. B. As part of Perform Quantitative Risk Analysis. C. As part of Plan Risk Responses. D. As part of Plan Risk Mgt

Back 75

D. Planning meetings and analysis are a tool of the process of Plan Risk Mgt. 'A' was from communication process

Front 76

"5. Refer to the diagram below. What is the expected value of Result A?Risk 1 with 50% arrow pointing to Risk 2. Risk 2 splits off into Risk A and B. $200K on top of Result A box. With 25% arrow pointing to it; $400K on Result B, with 75% arrow pointing to it. A. $200K, B. $100K, C. $50K D. $25K"

Back 76

"D. Multiplying out the probabilities times the value. In this case, it is the 50% prob of Risk 1 x the 25% prob of Risk 2 x the $200K value of result A. .5x.25x200k = $25K"

Front 77

7. Marie is meeting with her project team to evaluate each identified risk and try to assign an estimated dollar amount or time impact estimate to it. Which process is her team performing? A. Perform Quantitative Risk Analysis. B. Performe Qualitative Risk Analysis. C. Plan Risk Responses. D. Monitor and Control Risks.

Back 77

"A. Maries's team was quantifying the risks by seeking to assign a dollar or time estimate to them, part of Perform Quantitative Risk Analysis"

Front 78

"8. If a project manager is recommending that immediate corrective action be taken, which process is he involved in? A. Perform Qualitative Risk Analysis B. Plan Risk Mgt C. Identify Risks. D. Monitor and Control Risks"

Back 78

D. Recommended corrective action is the result of monitoring and controlling process.

Front 79

9. What is the BEST source of info about potential risk on your project? A. Computer risk analysis. B. Interviews with team members from other projects. C. Historical records form similar projects. D. Your own experience in the industry.

Back 79

"C.Historical records from similar projects would provide you with the best source of info on potential risks. 'A, B, D' are good sources but they would not be as pertinnet or helpful as the records from other similar projects. Historical info gets brought into your planning process as an organizational process asset."

Front 80

10. You have just finished a thorough Monte Carol analysis for your project. Which of the following would the analysis MOST likely identify? A. Divergent paths causing risk. B. Points of schedule risk. C. Points of schedule conflict that lead to risk. D. Gaps in the project path that could create risk.

Back 80

B.Monte Carlo would show where schedule risks exists on the project. 'A' wrong b/c it is typically convergent and not divergent tasks that created schedule risk. 'C' wrong b/c is tis not looking for schedule conflicts-those would be corrected by develop schdule. 'D' wrong b/c gaps in the project path do not by themselves cause risk.

Front 81

"11. Your company is beginning a new building projecct and has assigned you the role of pm. During the first few meetings with stakholders you become aware of several risks that are of concern to the project sponsor. The topic of risk mgt, however, has yet to be addressed. What is the first thing you should to address the project risks? A. Develop a risk mgt plan. B. Identify project risks. C. Plan responses to project risks. D. Determine how risks will be controlled"

Back 81

"A. A risk mgt plan will outline how all risk palnning activities and decision will be approached. Methods of identification, qualification, quantification, response planning, and control will all follow the development of the risk mgt plan"

Front 82

12. Plan Risk Mgt is: A. A process of identifying potential risks for a project. B. Deciding how risk mgt activities will be structrued and performed. C. Assessing the impact and likelihood of project risks. D. Numerical analysis of the probability of project risks.

Back 82

"B. Plan risk mgt is not planning for actaul risks(which includes 'A, C, D'); it is the PROCESS of deciding how all risk planning activities and decisions will be approached. It is the plan for how to plan."

Front 83

13. Which of the following is an output of Identify Risks? A. Risk Register. B. Probabilistic analysis. C. Risk-Related contractual agreements. D. Recommended cash reserves.

Back 83

"A. The risk register is the only outpout of Identfy Risks, and it is updated in Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risks Responses, and Monitor and Control Risks"

Front 84

14. Which of the following wold NOT be a strategy for dealing with negative risks? A. Avoid. B. Transfer. C. Share. D. Mitigate.

Back 84

"C. There are three identified strategies for dealing with negative risks. They are: mitigate, transfer, and avoid. 'C' wrong is that share is a strategy fo rmanaging positive risk or opportunity."

Front 85

15. A risk probability and impact assessment is used in: A. Identify Risks. B. Perform Qualitative Risk Analysis. C. Perform Quantitative Risk Analysis. D. Plan Risk Responses

Back 85

"B. for risk mgt, focus more on the processes themselves and their tools"

Front 86

"16. The BEST definition of risk management is : A. The process of identifying, analyzing, and responding to risk. B. The process of reducing risk to the minimum level possible for the project. C. The process of proactively ensuring that all project risk is documented and controlled. D. Creation of the risk response plan."

Back 86

A.

Front 87

17. Which of the following is NOT a tool or technique for gaining expert opinion as it relates to risk? A. Brainstorming. B. Delphi technique. C. Monte Carlo analysis. D. Expert Interviews

Back 87

"C. Monte Carol might be useful for revealing schedule risk, but not useful for gaining expert opinion. 'A, B, D' are all tools used as poart of project risk mgt."

Front 88

18. Which of the following would NOT be contained in the risk mgt plan? A. A risk breakdown structure B. A descriptionof theoverall approach to risk on the project. C. Risk roles and responsibilites D. A list of identified risks

Back 88

"D. The risk mgt plan does NOT contain the identified risk. It is more genearl and high level than that. The identified risks sill be listed in the risk register, produced after the risk managedment plan."

Front 89

19. Which of the following statements is TRUE regarding risk? A. All risk events must have a planned workaround. B. All risk events are uncertain. C. All risk events are negative. D. All risk events should be covered by a contigency budget amount.

Back 89

"B. Risk events by definition are uncertainties, which could be positive or negative. 'A' is incorrect because some risks are simply accepted and have no workaround. 'C' is incorrect beacuase a risk may be positive or neg. D. wrong b/c not all risks are budgeteed. Some are transferred to other parties or are too small or unlikely to occur"

Front 90

20. Which of the following is NOT a valid way to reduce risk? A. Select a contract type that reduces risk. B. Insure against the risk. C. Create a workaround for the risk. D. Plan to mitigate the risk.

Back 90

"C. The workaround is what you do if the risk occurs, but it does not reduce the risk as the question specified. 'A, B, D' all focus on reducing risk by transfering or mitigating it."