Term
1. You are a project manager for Fountain of Youth Spring Water bottlers. Your project
involves installing a new accounting system, and you’re performing the risk-planning
processes. You have identified several problems along with the causes of those problems.
Which of the following diagrams will you use to show the problem and its causes and
effects?
A. Decision tree diagram
B. Fishbone diagram
C. Benchmark diagram
D. Simulation tree diagram |
|
Definition
1. B. The cause-and-effect flowcharts—also called fishbone diagrams or Ishikawa diagrams—
show the relationships between the causes and effects of problems. |
|
|
Term
2. Assessing the probability and consequences of identified risks to the project objectives,
assigning a risk score to each risk, and creating a list of prioritized risks describe which of
the following processes?
A. Perform Quantitative Risk Analysis
B. Identify Risks
C. Perform Qualitative Risk Analysis
D. Plan Risk Management |
|
Definition
2. C. The purpose of Perform Qualitative Risk Analysis is to determine what impact the identified
risk events will have on the project and the probability they’ll occur. It also puts risks
in priority order according to their effects on the project objectives and assigns a risk score
for the project. |
|
|
Term
3. Each of the following statements is true regarding the risk management plan except for
which one?
A. The risk management plan is an output of the Plan Risk Management process.
B. The risk management plan includes a description of the responses to risks and
triggers.
C. The risk management plan includes thresholds, scoring and interpretation methods,
responsible parties, and budgets.
D. The risk management plan is an input to all the remaining risk-planning processes. |
|
Definition
3. B. The risk management plan details how risk management processes will be implemented,
monitored, and controlled throughout the life of the project. The risk management plan
does not include responses to risks or triggers. Responses to risks are documented in the
risk register as part of the Plan Risk Responses process. |
|
|
Term
4. You are using the interviewing technique of the Perform Quantitative Risk Analysis process.
You intend to use normal and lognormal distributions. All of the following statements
are true regarding this question except which one?
A. Interviewing techniques are used to quantify the probability and impact of the risks on
project objectives.
B. Normal and lognormal distributions use mean and standard deviation to quantify
risks.
C. Distributions graphically display the impacts of risk to the project objectives.
D. Triangular distributions rely on optimistic, pessimistic, and most likely estimates to
quantify risks. |
|
Definition
4. C. Distributions graphically display the probability of risk to the project objectives as well
as the time or cost elements. |
|
|
Term
5. The information-gathering techniques used in the Identify Risks process include all of the
following except _______________________.
A. root cause analysis
B. the Delphi technique
C. brainstorming
D. checklist analysis |
|
Definition
5. D. The information-gathering techniques in the Identify Risks process are brainstorming,
the Delphi technique, interviewing, and root cause analysis. |
|
|
Term
6. Which of the following processes assesses the likelihood of risk occurrences and their consequences
using a numerical rating?
A. Perform Qualitative Risk Analysis
B. Identify Risks
C. Perform Quantitative Risk Analysis
D. Plan Risk Responses |
|
Definition
6. C. Perform Quantitative Risk Analysis analyzes the probability of risks and their
consequences using a numerical rating. Perform Qualitative Risk Analysis might use
numeric ratings but can use a high-medium-low scale as well. |
|
|
Term
7. You are the project manager for a new website for the local zoo. You need to perform the
Perform Qualitative Risk Analysis process. When you’ve completed this process, you’ll
produce all of the following as part of the risk register update output except which one?
A. Priority list of risks
B. Watch list of low-priority risks
C. Probability of achieving time and cost estimates
D. Risks grouped by categories |
|
Definition
7. C. Probability of achieving time and cost estimates is an update that is produced from the
Perform Quantitative Risk Analysis process. |
|
|
Term
8. You’ve identified a risk event on your current project that could save $100,000 in project
costs if it occurs. Which of the following is true based on this statement?
A. This is a risk event that should be accepted because the rewards outweigh the threat to
the project.
B. This risk event is an opportunity to the project and should be exploited.
C. This risk event should be mitigated to take advantage of the savings.
D. This is a risk event that should be avoided to take full advantage of the potential savings. |
|
Definition
8. B. This risk event has the potential to save money on project costs, so it’s an opportunity,
and the appropriate strategy to use in this case is the exploit strategy. |
|
|
Term
9. You’ve identified a risk event on your current project that could save $500,000 in project
costs if it occurs. Your organization is considering hiring a consulting firm to help establish
proper project management techniques in order to assure it realizes these savings. Which of
the following is true based on this statement?
A. This is a risk event that should be accepted because the rewards outweigh the threat to
the project.
B. This risk event is an opportunity to the project and should be exploited.
C. This risk event should be mitigated to take advantage of the savings.
D. This is a risk event that should be shared to take full advantage of the potential
savings. |
|
Definition
9. D. This risk event has the potential to save money on project costs. Sharing involves using a
third party to help assure that the opportunity occurs. |
|
|
Term
10. Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest might
prevent your equipment from arriving on time. She wanted to give you a heads-up and
asked that you return the call. Which of the following statements is true?
A. This is a trigger.
B. This is a contingency plan.
C. This is a residual risk.
D. This is a secondary risk. |
|
Definition
| 10. A. The best answer is A. Triggers are warning signs of an impending risk event. |
|
|
Term
11. You are constructing a probability and impact matrix for your project. Which of the following
statements is true?
A. The probability and impact matrix multiplies the risk’s probability by the cost of the
impact to determine an expected value of the risk event.
B. The probability and impact matrix multiplies the risk’s probability—which fall from
0.0 to 1.0—and the risk’s impact for each potential outcome and then adds the result
of the potential outcomes together to determine a risk score.
C. The probability and impact matrix are predetermined thresholds that use the risk’s
probability multiplied by the impact of the risk event to determine an overall risk
score.
D. The probability and impact matrix multiplies the risk’s probability by the risk impact—
which both fall from 0.0 to 1.0—to determine a risk score. |
|
Definition
11. C. The probability and impact matrix multiplies the probability and impact to determine
a risk score. Using this score and a predetermined matrix, you determine if the score is a
high, medium, or low designation. |
|
|
Term
12. Your stakeholders have asked for an analysis of the cost risk. All of the following are true
except for which one?
A. Monte Carlo analysis is the preferred method to use to determine the cost risk.
B. Monte Carlo analysis is a modeling technique that computes project costs one time.
C. A traditional work breakdown structure can be used as an input variable for the cost
analysis.
D. Monte Carlo usually expresses its results as probability distributions of possible
costs. |
|
Definition
12. B. Monte Carlo analysis is a simulation technique that computes project costs many times
in an iterative fashion. |
|
|
Term
13. Your hardware vendor left you a voicemail saying that a snowstorm in the Midwest will
prevent your equipment from arriving on time. You identified a risk response strategy for
this risk and have arranged for a local company to lease you the needed equipment until
yours arrives. This is an example of which risk response strategy?
A. Transfer
B. Acceptance
C. Mitigate
D. Avoid |
|
Definition
13. C. Mitigation attempts to reduce the impact of a risk event should it occur. Making plans
to arrange for the leased equipment reduces the consequences of the risk. |
|
|
Term
14. Risk attitude is an enterprise environmental factor that you should evaluate when performing
the Plan Risk Management process. Risk attitude consists of all of the following elements
except for which one?
A. Risk appetite
B. Risk threshold
C. Risk urgency
D. Risk tolerance |
|
Definition
| 14. A. Risk appetite, risk tolerance, and risk threshold are the components of risk attitude. |
|
|
Term
15. You work for a large manufacturing plant. You are working on a new project to release an
overseas product line. This is the company’s first experience in the overseas market, and it
wants to make a big splash with the introduction of this product. The stakeholders are a
bit nervous about the project and historically proceed cautiously and take a considerable
amount of time to examine information before making a final decision. The project entails
producing your product in a concentrated formula and packaging it in smaller containers
than the U.S. product uses. A new machine is needed in order to mix the ingredients into a
concentrated formula. After speaking with one of your stakeholders, you discover this will
be the first machine your organization has purchased from your new supplier. Which of the
following statements is true given the information in this question?
A. The question describes risk tolerance levels of the stakeholders, which should be considered
when performing the Plan Risk Management process.
B. This question describes the interviewing tool and technique used during the Identify
Risks process.
C. This question describes risk triggers that are derived using interviewing techniques and
recorded in the risk register during the Perform Qualitative Risk Analysis process.
D. This question describes a risk that requires a response strategy from the positive risk
category. |
|
Definition
15. A. This question describes risk tolerance levels of the stakeholders. Risk triggers are
recorded in the risk register during the Plan Risk Responses process. The risk of buying a
machine from a new supplier would pose a threat to the project, not an opportunity. Interviewing
might have been used, but this question wasn’t describing the Identify Risks process. |
|
|
Term
16. Your project team has identified several potential risks on your current project that could
have a significant impact if they occurred. The team examined the impact of the risks by
keeping all the uncertain elements at their baseline values. What type of diagram will the
team use to display this information?
A. Fishbone diagram
B. Tornado diagram
C. Influence diagram
D. Process flowchart |
|
Definition
16. B. The question describes sensitivity analysis, which is a tool and technique of the Perform
Quantitative Risk Analysis process. Tornado diagrams are often used to display sensitivity
analysis data. |
|
|
Term
17. Your project team is in the process of identifying project risks on your current project. The
team has the option to use all of the following tools and techniques to diagram some of
these potential risks except for which one?
A. Ishikawa diagram
B. Decision tree diagram
C. Process flowchart
D. Influence diagram |
|
Definition
17. B. Decision tree diagrams are used during the Perform Quantitative Risk Analysis process.
All the other options are diagramming techniques used in the Identify Risks process. |
|
|
Term
18. All of the following statements are true regarding the RBS except for which one?
A. The RBS is contained in the risk management plan.
B. It describes risk categories, which are a systematic way to identify risks and provide a
foundation for understanding for everyone involved on the project.
C. The lowest level of the RBS can be used as a checklist, which is a tool and technique of
the Identify Risks process.
D. The RBS is similar to the WBS in that the lowest levels of both are easily assigned to a
responsible party or owner. |
|
Definition
18. D. The RBS describes risk categories, and the lowest level can be used as a checklist to help
identify risks. Risk owners are not assigned from the RBS but typically are assigned as soon
as the risk is identified. |
|
|
Term
19. Your team has identified the risks on the project and determined their risk score. The team
is in the midst of determining what strategies to put in place should the risks occur. After
some discussion, the team members have determined that the risk of losing their network
administrator is a risk they’ll just deal with if and when it occurs. Although they think it’s a
possibility and the impact would be significant, they’ve decided to simply deal with it after
the fact. Which of the following is true regarding this question?
A. This is a negative response strategy.
B. This is a positive response strategy.
C. This is a response strategy for either positive or negative risk known as contingency
planning.
D. This is a response strategy for either positive or negative risks known as passive
acceptance. |
|
Definition
19. D. This is a response strategy known as passive acceptance because the team has decided to
take no action and make no plans for the risk. This is a strategy that can be used for either
positive or negative risks. |
|
|
Term
20. All of the following are true regarding the Perform Qualitative Risk Analysis process except
which one?
A. Probability and impact and expert interviews are used to help correct biases that occur
in the data you’ve gathered during this process.
B. The probability and impact matrix is used during this process to assign red, yellow,
and green conditions to risks.
C. Perform Qualitative Risk Analysis is an easy method of determining risk probability
and impact that usually takes a good deal of time to perform.
D. Risk urgency assessment is a tool and technique of this process used to determine
which risks need near-term response plans. |
|
Definition
20. C. Perform Qualitative Risk Analysis is a fast and easy method of determining probability
and impact. |
|
|
