Project Risk Management Quiz – Himanshu Agarwal

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1. What is the purpose of the Monitor Risks process?

To identify new risks.

To analyze the probability and impact of risks.

To track identified risks, monitor residual risks, and identify new risks.

To develop risk response plans.

2. Which of the following is a common input to the Perform Qualitative Risk Analysis process?

Risk management plan

Project budget

Project schedule

Stakeholder register

3. A risk trigger is BEST described as:

A potential event that could impact the project.

A symptom or warning sign that a risk is about to occur or has occurred.

The person responsible for managing a specific risk.

The financial reserve allocated to address potential risks.

4. What is the primary goal of risk management planning?

To identify all possible risks.

To define how risk management activities will be conducted.

To eliminate all risks from the project.

To assign responsibility for all identified risks.

5. A project manager is reviewing the risk register and notices a risk with a high impact but a very low probability. What is the MOST appropriate course of action?

Ignore the risk due to its low probability.

Develop a full mitigation plan.

Monitor the risk and develop a contingency plan if necessary.

Transfer the risk to a third party.

6. Which of the following is a risk response strategy that involves allocating some or all of the ownership of an opportunity to a third party who is best able to realize it for the benefit of the project?

Enhance

Exploit

7. Which of the following BEST describes residual risks?

Risks that remain after risk responses have been implemented.

Newly identified risks that emerge during project execution.

Risks that were initially identified but later deemed insignificant.

The potential negative consequences of implementing risk response plans.

8. A project team has identified a risk that could result in a significant delay to the project schedule. They decide to add buffer time to the schedule to mitigate this potential impact. Which risk response strategy are they using?

Avoid

Mitigate

Transfer

9. A project manager is monitoring the risk register and notices that the probability of a specific risk has increased significantly. What should the project manager do NEXT?

Ignore the change if the impact remains low.

Update the project management plan.

Re-assess the risk and its potential impact.

Immediately implement the contingency plan.

10. A project manager is reviewing potential risks and wants to visually represent the hierarchy of identified risks. Which of the following tools would be MOST suitable for this purpose?

Probability and impact matrix

Risk breakdown structure (RBS)

Influence diagram

Tornado diagram

11. Which of the following techniques uses expected monetary value (EMV) to analyze potential outcomes of different project scenarios?

Sensitivity analysis

Monte Carlo analysis

Decision tree analysis

Probability and impact matrix

12. A project manager is using checklists for risk identification. What is a key advantage of using this technique?

It guarantees that all possible risks will be identified.

It provides a structured and comprehensive way to identify common risks.

It is highly effective for identifying novel and unique risks.

It eliminates the need for expert judgment.

13. During the risk assessment process, a risk is determined to have a high probability of occurrence and a high impact on project objectives. According to a typical probability and impact matrix, how should this risk be categorized?

Low priority

Medium priority

High priority

Monitor only

14. A project team has identified a risk with a low probability and a high impact. Which of the following is the MOST appropriate initial action?

Ignore the risk due to its low probability.

Develop a detailed mitigation plan.

Monitor the risk closely and develop a contingency plan.

Transfer the risk to a third party.

15. Which of the following is an example of a positive risk (opportunity) that could be identified in a project?

A key team member unexpectedly resigns.

A critical supplier goes out of business.

A new technology emerges that could significantly reduce development time.

Changes in government regulations require additional compliance measures.

16. What is the primary purpose of a risk audit?

To identify new risks that were not previously identified.

To assess the effectiveness of the risk management processes.

To determine the financial impact of realized risks.

To assign responsibility for managing identified risks.

17. A project manager is facilitating a risk identification meeting with the project team and key stakeholders. Which of the following techniques is MOST effective for generating a comprehensive list of potential risks?

Brainstorming

Monte Carlo analysis

Sensitivity analysis

Earned Value Management

18. Which of the following is a primary goal of the Plan Risk Management process?

To identify all potential risks.

To define the risk management activities for the project.

To analyze the probability and impact of identified risks.

To develop risk response plans.

19. Which of the following is a key input to the Perform Qualitative Risk Analysis process?

Risk report

Project schedule

Cost management plan

Risk register

20. Which of the following is a key element of the risk management plan?

A list of all identified risks and their owners.

The criteria for interpreting the probability and impact of risks.

The budget allocated for contingency reserves.

The detailed steps for implementing each risk response.

21. During a project execution, a previously unidentified risk emerges. What is the FIRST thing the project manager should do?

Update the risk register.

Implement the contingency plan.

Assess the impact and probability of the new risk.

Inform the project sponsor immediately.

22. Which of the following BEST describes the purpose of identifying risks in a project?

To eliminate all potential threats to the project.

To assign responsibility for each potential risk.

To understand potential events that could impact the project positively or negatively.

To create a detailed plan for every possible project scenario.

23. A project manager is using an influence diagram. What is the primary purpose of this tool in risk management?

To show the hierarchical breakdown of risks.

To visually represent the relationships between different project variables and their potential impact on outcomes.

To prioritize risks based on their probability and impact.

To simulate different project scenarios.

24. Which of the following BEST describes a fallback plan?

A proactive plan developed to address risks with a high probability and high impact.

A reactive plan developed for risks that may occur if the contingency plan is not effective.

A plan to transfer the financial impact of a risk to a third party.

A plan to avoid a risk by changing the project scope.

25. Which of the following BEST describes secondary risks?

Risks that are a direct result of implementing risk response plans.

Risks that were identified during the initial risk identification process.

Risks that have a low probability and low impact.

Risks that are transferred to a third party.

26. Which of the following BEST describes a management reserve?

Funds used to cover planned risk responses.

Funds used to cover unforeseen risks within the project scope.

Funds used to cover changes in project scope.

Time added to the schedule to account for known delays.

27. Which of the following is a risk response strategy that involves unilaterally taking action to eliminate the threat?

Exploit

Enhance

Avoid

28. Which of the following is a characteristic of a well-defined risk statement?

It focuses on the impact rather than the cause.

It is vague and allows for broad interpretation.

It includes the cause, the risk event, and the potential impact.

It assigns responsibility for managing the risk.

29. Which of the following is a tool used in Perform Qualitative Risk Analysis?

Decision tree analysis

Monte Carlo simulation

Probability and impact matrix

Earned Value Analysis

30. Which of the following is a quantitative risk analysis technique that helps to determine the impact of variations in input variables on a dependent variable?

Expected monetary value analysis

Decision tree analysis

Sensitivity analysis

Monte Carlo analysis

31. During a project meeting, a stakeholder raises a new potential risk. What should the project manager do FIRST?

Immediately update the risk register.

Dismiss the risk if it was not identified earlier.

Assess the potential impact and probability of the new risk.

Assign responsibility for the risk to a team member.

32. A project manager is reviewing the risk register and notices that a risk event has occurred. What should be the project manager’s NEXT step?

Close the risk in the risk register.

Implement the contingency plan.

Update the project management plan.

Identify new risks that may arise as a result.

33. Which of the following is NOT a typical element of a risk management plan?

Methodology

Roles and responsibilities

Risk thresholds

Project budget

34. Which of the following stakeholders is typically responsible for approving the risk management plan?

Project Manager

Project Team

Project Sponsor

Risk Manager

35. Which of the following is NOT a typical output of the Monitor Risks process?

Risk register updates

Risk report

Change requests

Risk management plan

36. A project manager is reviewing the project budget and notices a significant amount allocated as management reserve. What is the purpose of the management reserve?

To cover costs associated with implementing planned risk responses.

To cover costs associated with unforeseen risks that were not identified during planning.

To cover scope changes that are approved during the project.

To cover cost overruns due to poor project performance.

37. What is the primary purpose of performing assumption analysis?

To identify potential risks based on the validity of project assumptions.

To assess the probability and impact of identified risks.

To develop risk response plans.

To monitor the effectiveness of risk responses.

38. Which of the following is NOT a typical tool or technique for identifying risks?

Brainstorming

Checklists

Assumption analysis

Earned Value Analysis

39. Which of the following is a tool and technique used in the Monitor Risks process?

Risk breakdown structure

Probability and impact matrix

Risk audit

SWOT analysis

40. A project team has identified several potential risks and is now determining the likelihood of these risks occurring and their potential impact on the project. Which process are they currently performing?

Identify Risks

Plan Risk Management

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

41. What is the purpose of a risk owner?

To identify potential risks.

To analyze the probability and impact of risks.

To develop and implement risk response plans.

To approve the risk management plan.

42. Which of the following stakeholders is typically MOST involved in the risk management process?

Project Team

Project Sponsor

Functional Managers

Customers

43. A project team is using simulation to model the potential impact of schedule uncertainties on the project completion date. Which quantitative risk analysis technique are they using?

Sensitivity analysis

Expected monetary value analysis

Monte Carlo analysis

Decision tree analysis

44. Which of the following is a common cause of opportunities in a project?

Lack of clear communication.

Inadequate planning.

Favorable market conditions.

Unrealistic deadlines.

45. During project execution, a new risk is identified. What process should the project manager follow to address this risk?

Close the project and start a new one.

Ignore the risk if it wasn’t in the original risk register.

Perform risk management processes, including assessment and response planning.

Immediately implement a contingency plan.

46. Which of the following risk response strategies involves taking action to reduce the probability of occurrence or impact of a risk?

Avoid

Transfer

Mitigate

47. Which of the following is NOT a typical element of the risk register?

Identification number for each risk

Description of the risk

Probability and impact of the risk

Detailed work breakdown structure (WBS)

48. A project manager is concerned about the impact of a delay in a critical deliverable. Which risk analysis technique would be MOST helpful in determining the potential impact of this delay on the overall project schedule?

Probability and impact matrix

Sensitivity analysis

Risk register

SWOT analysis

49. Which of the following is a tool used in the Identify Risks process?

Monte Carlo analysis

Sensitivity analysis

Delphi technique

Expected monetary value analysis

50. Which of the following is a key input to the Monitor Risks process?

Risk breakdown structure

Probability and impact matrix

Risk register

SWOT analysis

51. Which of the following BEST describes a contingency reserve?

Funds allocated to address risks that are known and included in the risk register.

Funds allocated to address unforeseen risks that were not identified during planning.

Time added to the project schedule to account for potential delays.

Resources allocated to implement risk response plans.

52. Which of the following is NOT a typical element of a risk report?

Summary of overall project risk exposure.

Details of individual project risks.

Outcomes of risk responses.

Detailed budget for each work package.

53. A project manager is using a probability and impact matrix with scales of Very Low, Low, Medium, High, and Very High. A risk with a “High” probability and a “Medium” impact would likely be categorized as:

Low risk

Medium risk

High risk

Very high risk

54. Which of the following is a key input to the Plan Risk Management process?

Risk Register

Project Management Plan

Risk Report

Lessons Learned Register

55. A project team is brainstorming potential risks. Which of the following is a key principle for effective brainstorming?

Criticize ideas to ensure only the best are captured.

Encourage everyone to contribute, no matter how unusual the idea seems.

Focus on analyzing each risk as it is identified.

Limit the session to a small group of experts.

56. A project manager is reviewing the project schedule and identifies a critical path activity with a high degree of uncertainty in its duration. Which risk analysis technique would be MOST appropriate to assess the potential impact of this uncertainty on the overall project completion date?

Probability and impact matrix

Sensitivity analysis

Risk breakdown structure

Monte Carlo analysis

57. Which of the following is a key benefit of using a risk breakdown structure (RBS)?

It helps in quantifying the financial impact of risks.

It provides a hierarchical framework to help the team identify risks.

It assigns responsibility for managing each identified risk.

It prioritizes risks based on their probability and impact.

58. Which of the following risk response strategies aims to increase the probability and/or positive impact of an opportunity?

Avoid

Mitigate

Enhance

59. A project team decides to purchase insurance to cover potential financial losses due to a specific risk. Which risk response strategy are they employing?

Transfer

Escalate

Avoid

60. Which of the following is a quantitative risk analysis technique that models a range of potential outcomes by performing multiple simulations?

Sensitivity analysis

Expected monetary value analysis

Monte Carlo analysis

Decision tree analysis

61. A project team is considering two different suppliers for a critical component. Supplier A has a lower cost but a higher risk of late delivery, while Supplier B has a higher cost but a lower risk of late delivery. Which risk analysis technique could help the team decide which supplier to choose based on cost and schedule risks?

Sensitivity analysis

Expected monetary value analysis

Monte Carlo analysis

Probability and impact matrix

62. A project team has identified a risk that, if it occurs, will have a significant negative impact on the project schedule but a minimal impact on the budget. Which risk response strategy might be MOST appropriate?

Avoid

Mitigate the schedule impact

Transfer the budget impact

Accept the risk

63. Which of the following is a primary output of the Perform Quantitative Risk Analysis process that represents the likelihood of achieving specific project objectives?

Risk register updates

Sensitivity analysis results

Probabilistic analysis of the project

Risk management plan updates

64. Which of the following risk response strategies is appropriate for risks with a low probability and low impact?

Avoid

Mitigate

Transfer

65. A project manager is reviewing the lessons learned from previous projects. How can this information be MOST helpful for the current project’s risk management?

It provides a list of risks that are guaranteed to occur.

It helps in identifying potential risks based on past experiences.

It eliminates the need for risk analysis techniques.

It automatically determines the appropriate risk response strategies.

66. What is the purpose of establishing risk thresholds?

To define the level of risk that requires a response.

To categorize risks based on their source.

To assign responsibility for managing risks.

To estimate the financial impact of risks.

67. Which of the following is a risk response strategy that involves changing the project objectives to avoid the risk?

Mitigate

Transfer

Avoid

68. Which of the following outputs of the Identify Risks process provides a structured list of identified risks along with their descriptions?

Risk Management Plan

Risk Register

Risk Report

Issue Log

69. What is the primary purpose of a risk report?

To document all identified risks and their analysis.

To communicate information about overall project risk and individual project risks.

To assign responsibility for managing identified risks.

To track the status of implemented risk responses.

70. Which of the following risk response strategies involves changing the project plan to eliminate the risk or protect the project objectives from its impact?

Mitigate

Transfer

Avoid

71. Which of the following is a key characteristic of effective risk management?

Reactive

Isolated

Proactive

Optional

72. Which of the following is a key benefit of performing risk management throughout the project lifecycle?

It guarantees project success.

It eliminates all uncertainty.

It increases the likelihood of meeting project objectives.

It reduces the need for project management processes.

73. Which of the following is NOT a common category of project risks?

Technical risks

Management risks

Business risks

Ethical risks

74. Which of the following is a benefit of using standardized risk categories in a project?

It ensures that all possible risks are identified.

It provides a structured approach to risk identification.

It eliminates the need for further risk analysis.

It automatically assigns risk owners.

75. Which of the following is a characteristic of effective risk monitoring and control?

It is performed only at the end of the project.

It involves tracking identified risks and identifying new risks.

It focuses solely on negative risks.

It does not require updating the risk register.

76. A project manager is reviewing potential risks and wants to understand which risks have the most potential impact on the project. Which of the following tools would be MOST helpful?

Risk register

Tornado diagram

Risk breakdown structure

Probability and impact matrix

77. During project closure, what should be done with the risk register?

Discard it as the project is complete.

Archive it as part of the project documents for future reference.

Update it with lessons learned about risk management.

Use it as a template for future projects.

78. During project closure, what should be done with the lessons learned related to risk management?

Discard them as the project is complete.

Store them in an organizational process asset library for future projects.

Share them only with the project sponsor.

Keep them confidential within the project team.

79. What is the relationship between the risk register and the risk management plan?

The risk register is an input to the risk management plan.

The risk management plan is an input to the risk register.

They are the same document.

They are independent documents with no direct relationship.

80. Which of the following is a common cause of project risks?

Effective communication

Clear project objectives

Changes in requirements

Adequate resource allocation

81. Which of the following is a key benefit of performing qualitative risk analysis?

It provides a numerical estimate of the probability and impact of risks.

It prioritizes risks for further analysis or response.

It simulates the potential outcomes of different risk scenarios.

It calculates the expected monetary value of risks.

82. A project manager is facilitating a meeting to review the status of identified risks and the effectiveness of implemented risk responses. Which process is being performed?

Identify Risks

Plan Risk Responses

Monitor Risks

Perform Qualitative Risk Analysis

83. A project manager is facilitating a lessons learned session at the end of a project. What information related to risk management should be captured?

The total number of risks identified.

The names of the individuals responsible for each risk.

The effectiveness of the risk management processes and the outcomes of implemented risk responses.

The initial probability and impact scores of all identified risks.

84. Which of the following risk response strategies is most suitable for opportunities with a high probability and high positive impact?

Enhance

Exploit

85. Which of the following is a tool that can be used to visually display the probability and impact of risks?

Risk breakdown structure

Tornado diagram

Probability and impact matrix

Influence diagram

86. Which of the following risk response strategies involves sharing the burden of the risk with a third party?

Mitigate

Transfer

Enhance

87. Which of the following is a key output of the Perform Quantitative Risk Analysis process?

Risk register updates

Probability and impact matrix

Risk report

Prioritized list of quantitative risks

88. A project team is using a probability and impact matrix. A risk with a probability of 0.8 and an impact score of 0.7 would typically fall into which category if the threshold for high risk is 0.56 (probability * impact)?

Low

Medium

High

Monitor

89. A project has a 60% chance of a $100,000 profit and a 40% chance of a $50,000 loss. What is the expected monetary value (EMV) of this project?

$40,000

$80,000

$10,000

$20,000

90. Which of the following is a tool used in the Perform Quantitative Risk Analysis process?

Brainstorming

Delphi technique

Influence diagrams

Expected monetary value (EMV) analysis

91. The process of developing options and actions to enhance opportunities and reduce threats to the achievement of project objectives is known as:

Identify Risks

Perform Risk Analysis

Plan Risk Responses

Monitor Risks

92. Which of the following is a key output of the Identify Risks process that contains potential responses to identified risks?

Risk management plan

Risk register

Risk report

Issue log

93. Which of the following is an example of a risk trigger?

A delay in the delivery of a key component exceeding one week.

The project manager holding a team meeting.

The project sponsor approving a change request.

The completion of a major project milestone.

94. A project manager is using a decision tree to analyze different project paths based on potential risks and their associated outcomes. What is the primary benefit of using this technique?

It provides a visual representation of the risk breakdown structure.

It helps in calculating the expected monetary value of different decisions.

It prioritizes risks based on their probability and impact.

It simulates a large number of possible project outcomes.

95. Which of the following is NOT a typical output of the Plan Risk Responses process?

Contingency plans

Fallback plans

Risk triggers

Risk register

96. During project execution, a risk occurs that was identified in the risk register, and a contingency plan was developed. What should the project manager do NEXT?

Update the risk register with the outcome.

Implement the fallback plan.

Implement the contingency plan.

Identify new risks that may arise.

97. Which of the following risk response strategies is appropriate for opportunities with a low probability and low positive impact?

Exploit

Enhance

98. The level of risk that the organization is willing to accept is known as:

Risk tolerance

Risk threshold

Risk appetite

Risk limit

99. The risk management plan should include all of the following EXCEPT:

Roles and responsibilities for risk management activities.

Budget and schedule for risk management activities.

A list of all identified risks.

Risk categories.

100. Which of the following is a tool and technique used in the Plan Risk Responses process?

Risk data quality assessment

Probability and impact matrix

Risk workshops

Strategies for negative risks or threats

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