Himanshu Agarwal

Not Just Another Project Manager

Project Risk Management

  1. Which of the following is a key input to the Monitor Risks process?
    • Risk breakdown structure
    • Probability and impact matrix
    • Risk register
    • SWOT analysis
  2. 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.
  3. Which of the following is NOT a typical tool or technique for identifying risks?
    • Brainstorming
    • Checklists
    • Assumption analysis
    • Earned Value Analysis
  4. The level of risk that the organization is willing to accept is known as:
    • Risk tolerance
    • Risk threshold
    • Risk appetite
    • Risk limit
  5. Which of the following risk response strategies involves taking action to reduce the probability of occurrence or impact of a risk?
    • Avoid
    • Transfer
    • Mitigate
    • Accept
  6. 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
  7. 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
  8. 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.
  9. 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.
  10. Which of the following stakeholders is typically responsible for approving the risk management plan?
    • Project Manager
    • Project Team
    • Project Sponsor
    • Risk Manager
  11. 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
  12. 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
  13. Which of the following is NOT a common category of project risks?
    • Technical risks
    • Management risks
    • Business risks
    • Ethical risks
  14. 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.
  15. Which of the following risk response strategies is appropriate for opportunities with a low probability and low positive impact?
    • Exploit
    • Enhance
    • Share
    • Accept
  16. 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.
  17. 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.
  18. Which of the following is a tool used in the Identify Risks process?
    • Monte Carlo analysis
    • Sensitivity analysis
    • Delphi technique
    • Expected monetary value analysis
  19. 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
  20. 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.
  21. Which of the following is a key input to the Perform Qualitative Risk Analysis process?
    • Risk report
    • Project schedule
    • Cost management plan
    • Risk register
  22. 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
  23. 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
    • Accept
  24. Which of the following is NOT a typical output of the Monitor Risks process?
    • Risk register updates
    • Risk report
    • Change requests
    • Risk management plan
  25. 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.
  26. 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.
  27. 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
  28. 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
  29. 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.
  30. 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
  31. 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.
  32. Which of the following is a risk response strategy that involves changing the project objectives to avoid the risk?
    • Mitigate
    • Transfer
    • Avoid
    • Accept
  33. 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
  34. 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.
  35. 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.
  36. 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
  37. 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.
  38. 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.
  39. 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.
  40. Which of the following is a risk response strategy that involves unilaterally taking action to eliminate the threat?
    • Exploit
    • Share
    • Enhance
    • Avoid
  41. 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.
  42. 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.
  43. 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
  44. 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.
  45. 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
    • Share
    • Exploit
    • Accept
  46. 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.
  47. Which of the following is a common cause of opportunities in a project?
    • Lack of clear communication.
    • Inadequate planning.
    • Favorable market conditions.
    • Unrealistic deadlines.
  48. 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.
  49. 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.
  50. 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.
Answers
  1. Risk register
  2. Implement the contingency plan.
  3. Earned Value Analysis
  4. Risk appetite
  5. Mitigate
  6. Expected monetary value analysis
  7. Probabilistic analysis of the project
  8. Risks that are a direct result of implementing risk response plans.
  9. To define the level of risk that requires a response.
  10. Project Sponsor
  11. Strategies for negative risks or threats
  12. Tornado diagram
  13. Ethical risks
  14. To identify potential risks based on the validity of project assumptions.
  15. Accept
  16. Perform risk management processes, including assessment and response planning.
  17. It provides a hierarchical framework to help the team identify risks.
  18. Delphi technique
  19. Monitor Risks
  20. A reactive plan developed for risks that may occur if the contingency plan is not effective.
  21. Risk register
  22. Sensitivity analysis
  23. Mitigate
  24. Risk management plan
  25. To communicate information about overall project risk and individual project risks.
  26. It includes the cause, the risk event, and the potential impact.
  27. High risk
  28. Probability and impact matrix
  29. To define the risk management activities for the project.
  30. Risk register
  31. It helps in identifying potential risks based on past experiences.
  32. Avoid
  33. Monte Carlo analysis
  34. The criteria for interpreting the probability and impact of risks.
  35. Implement the contingency plan.
  36. Expected monetary value (EMV) analysis
  37. To develop and implement risk response plans.
  38. It involves tracking identified risks and identifying new risks.
  39. To visually represent the relationships between different project variables and their potential impact on outcomes.
  40. Avoid
  41. The risk management plan is an input to the risk register.
  42. It prioritizes risks for further analysis or response.
  43. Monte Carlo analysis
  44. Detailed budget for each work package.
  45. Share
  46. Store them in an organizational process asset library for future projects.
  47. Favorable market conditions.
  48. It provides a structured and comprehensive way to identify common risks.
  49. Funds used to cover unforeseen risks within the project scope.
  50. Monitor the risk closely and develop a contingency plan.

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