Respond to the following MCQ's:
Question 1 . According to the textbook, risk management plans address 8 topics. Which of the following is not one of these topics?
a. Roles and responsibilities
b. Work breakdown structure
c. Budget and schedule
d. Tracking
Question 2 . Many tools and techniques have been developed to help identify project risks. The US Government has appointed an independent experts group to anonymously provide their opinion on what may happen in future. What is the tool/technique adopted?
a. Brainstorming
b. Delphi technique
c. SWOT analysis
d. Interviewing
Question 3 . The executive management of your organization has asked you, the project manager, for a periodic review of the project risks. Which risk analysis tool will you use that will help in monitoring the risks throughout the project life?
a. Top ten risk item tracking
b. Probability/impact matrix
c. Risk breakdown structure
d. Risk ranking chart
Question 4 . People's attitudes towards risk vary. Some derive a high degree of satisfaction only from high stake risks whereas others are happy only when the stakes are low. What is the term for the measure of this satisfaction?
a. Risk reward
b. Risk gratification
c. Risk appetite
d. Risk utility
Question 5 . You are tasked with preparing the risk breakdown structure for a project. After a thorough investigation you find that the responsibilities of each project team member have not been clearly defined. Which knowledge area of project management is this associated with?
a. Human resources
b. Scope
c. Communications
d. Integration
Question 6 . An organization is evaluating the risks involved in implementing a sales force automation solution. It has been evaluated that the organization can save a lot of money. At this stage it is important to understand if the sales team will use this system. What category of risk needs to be assessed?
a. Financial risk
b. People risk
c. Process risk
d. Market risk
Question 7 . Risks are controlled in two ways. It is essential to raise risk awareness and make it an ongoing activity for all project team members. In addition, risk events should trigger the execution of the risk management plan in order to control the risk. A number of tools and techniques are available to control risk. Which of the following is not one of the techniques for risk control?
a. Risk reassessment
b. Variance and trend analysis
c. Periodic risk reviews
d. Budget preparation
Question 8 . Risk can be mitigated by reducing the probability of it happening. If project managers use established processes then some of the risk can be mitigated. The triple constraint of scope, cost and time are affected by technical, cost and schedule risks respectively. Which risk mitigation strategy helps lower the probability of all three risks?
a. Use WBS and CPM
b. Increase project manager authority
c. Improve problem handling
d. Emphasize team support
Question 9 . Negative risks are potential hurdles to the execution of a project as per plan. Positive risks are those that impact the plan in the opposite direction of negative risks. Each, negative and positive risks, have suitable basic risk response strategies. Which one of the following strategies is applicable for both types of risks?
a. Risk mitigation
b. Risk acceptance
c. Risk transference
d. Risk sharing
Question 10 . Project managers must treat risk management as an investment which increases the chances of success. Under which of the following circumstances would project risk management make financial sense?
a. Never makes financial sense
b. Only when the cost of risk management is lower than the expected benefits
c. Only when the cost of risk management is higher than the expected benefits
d. Always makes financial sense
Question 11 . A project manager feels elated when a proposal to build a new product gets accepted even though it could make or break one's career. What is this person's approach to risk?
a. Risk-seeking
b. Risk-neutral
c. Risk-tolerant
d. Risk-averse
Question 12 . A project manager has successfully identified risks and put in place suitable risk response strategies. However, these strategies have created new risks. What is the term for these risks?
a. Residual risks
b. Enhanced risks
c. Secondary risks
d. Unknown risks
Question 13 . Calculate the expected monetary value (EMV) of a project that has a 95% chance of yielding $500,000 and a 5% chance of losing $200,000?
a. $455,000
b. $465,000
c. $475,000
d. $485,000
Question 14 . Historically, organizations have not given importance to identify and manage risks. Now, risk management is being recognized and valued. It takes knowledge and talent to identify and manage project risks. Which activity below is not a part of project risk management?
a. Identifying the skills required for the project
b. Recognizing the shortage of a required skill
c. Preparing staffing plans to overcome the skill shortage
d. Analyzing the impact on project budget due to skill shortage
Question 15 . An organization is planning to enter a new market with weak competition. Even though the organization is confident that it has made the right bet, a high degree of uncertainty exists. What is this organization's approach to risk?
a. It has a high risk tolerance
b. It has a high risk acceptance
c. It has a high risk appetite
d. It has a high risk utility
Question 16 . Some members of your project team work in an area where the electricity supply is not stable. You have drafted a plan to order a power backup. What type of plan is this?
a. Fallback plans
b. Contingency reserves
c. Contingency plans
d. Management reserves
Question 17 . As the project manager of an information technology project you evaluate the chance of any key employee leaving the project and whether that will have any impact on the schedule. What risk management process have you utilized?
a. Identifying risks
b. Planning risk management
c. Performing quantitative risk analysis
d. Performing qualitative risk analysis
Question 18 . A project manager is preparing the risk register and is looking for any leading indicators of potential risk. What is the term for these indicators?
a. Switches
b. Checklists
c. Triggers
d. Watch list items
Question 19 . Quantitative risk analysis involves numerically estimating the effects of risks on project objectives. Which one of the following is not a technique for quantitative risk analysis?
a. Decision tree
b. Simulation
c. Probability/impact chart
d. Sensitivity analysis
Question 20 . The project manager decides to not upgrade to the new, unfamiliar operating system until the ongoing IT project is completed. What type of negative risk response strategy is this?
a. Risk mitigation
b. Risk transference
c. Risk acceptance
d. Risk avoidance