Accurate and unbiased data are essential for perform qualitative risk analysis. Which one of the following should you use to examine the extent of understanding of project risk?
A. Data quality assessment B. Project assumptions testing C. Sensitivity analysis D. Influence diagrams
Correct Answer: A
Explanation:
Explanation:
Perform qualitative risk analysis requires accurate and unbiased data. The use of low-quality data may result in a qualitative risk analysis that is of little use to the project manager regarding understanding of the risk, data available about the risk, data quality, and
data reliability and integrity.
What is the primary difference between a risk audit and a risk reassessment?
A. A risk reassessment is conducted at the completion of a major phase; audits are conducted after the project is complete. B. Project stakeholders conduct risk audits; management conducts reassessments. C. Risk reassessments are regularly scheduled; risk audits are performed as defined in the project's risk management plan. D. There is no difference; they are virtually the same.
Correct Answer: C
Explanation:
Explanation:
Risk reassessment is an ongoing activity by the project team. Risks should be discussed at every status meeting. Risk audits are performed during the project life cycle to examine and document the effectiveness of risk responses. They are conducted at
appropriate frequencies as defined in the risk management plan.
Which one of the following statements best characterizes an activity cost or duration estimate developed with a limited amount of information?
A. It should be part of the planning for the needed management reserve.
B. It is an input to identify risks. C. It is an output from identify risks. D. It must be factored into the list of prioritized project risks.
Correct Answer: B
Explanation:
Explanation:
Much of the output from planning in other knowledge areas, such as activity cost and duration estimates, may entail risk and is reviewed during the identify risks process. This process requires an understanding of the schedule, cost, and quality management
plans found in the project management plan. Estimates that are aggressive or developed with a limited amount of information are even more likely to entail risk and, therefore, must also be an input to the identify risks process.
The highest risk impact generally occurs during which one of the following project life-cycle phases?
A. Concept and planning B. Planning and implementation C. Implementation and closeout D. Concept and closeout
Correct Answer: C
Explanation:
Explanation:
Opportunity and risk generally remain high during the concept and planning phases. However, the amount at stake remains low because of the relatively low level of investment up to that point. During project implementation and closeout, however, risk falls to
lower levels as remaining unknowns are translated into knowns. At the same time, the amount at stake rises steadily as the necessary resources are invested to complete the project.
Two key inputs to the perform quantitative risk analysis process are the______________
A. WBS and milestone list B. Scope management plan and process improvement plan C. Schedule management plan and cost management plan D. Procurement management plan and quality baseline
Correct Answer: C
Explanation:
Explanation:
The cost and schedule of a project are two areas significantly affected by risk occurrences. Information on these two areas, because of their quantitative nature, provides excellent input to the perform quantification risk process to help determine overall impact and
to provide guidelines as managing risk reserves.
On a typical project, when are risks highest and impacts (amount at stake) lowest?
A. During the concept phase B. At or near completion of the project C. During the implementation phase D. When the project manager is replaced
Correct Answer: A
Explanation:
Explanation:
Risks are highest at the beginning of a project because the project faces an uncertain future, and impacts are lowest at this time because investments in human and material resources are minimal.
A. Using performance and payment bonds B. Eliminating a specific threat by eliminating the cause
C. Avoiding the schedule risk inherent in the project D. Reducing the probability and/or impact of an adverse risk event to an acceptable threshold
Correct Answer: D
Explanation:
Explanation:
It is often more effective to take early action to reduce probability and/or impact of a risk occurring on a project than attempting to repair the damage after the risk has occurred.
When managing current projects, it is important to use lessons learned from previous projects to improve the organization's project management process. Therefore, in project closing procedures, it is important to review the______________
A. Secondary risks that occurred B. Checklists for identify risks C. WBS dictionary D. Fallback plan
Correct Answer: B
Explanation:
Explanation:
Checklists are a tool and a technique of the identify risks process and include risks encountered on similar, previous projects identified through the lessons learned process and from other sources. The project team should review the checklist as part of the
identify risks process as well as during closeout. The team should add to the list as necessary, based on its experience, to help others in the future.
Your project is using complex, unproven technology. Your team conducted a brainstorming session to identify risks. Poor allocation of project resources was the number one risk. This risk was placed on the risk register, which included at this point
a______________
A. Watch list B. Potential risk response C. Known unknown D. List of other risks requiring additional analysis
Correct Answer: B
Explanation:
Explanation:
The risk register is prepared first in the identify risks process. It contains a list of identified risks in as much detail as possible and a list of potential responses when they are identifiable at this time.
The primary advantage of using decision-tree analysis in project risk management is that it______________
A. Considers the attitude of the decision maker toward risk B. Forces consideration of the probability of each outcome C. Helps to identify and postulate risk scenarios for the project D. Shows how risks can occur in combination
Correct Answer: B
Explanation:
Explanation:
As a graphical way to bring together information, decision-tree analysis quantifies the likelihood of failure and places a value on each decision. Usually applied to cost and time considerations, this form of risk analysis may be linked to a sensitivity analysis.
