Questions
Note: Your answers must be very short- limited to about 5 sentences for short essay questions. Repeat the questions followed by your answers in your Quiz1 post.
1. All projects must go through rigorous and detailed quantitative risk analysis. True or False. ____
2. Quantitative risks mainly deal with Project-Level Risks. True or False. ____
3. What are "secondary risks"? Give one example.
4. What is risk threshold? Give a numerical example.
5. What is risk tolerance? Give a numerical example.
6. What is a risk owner? What does he/she do?
7. A potential risk event has always negative consequences. True or False ____
8. A project faced two potential risk events. First was weather related - A and second was people related risk - B. A has probability of 30% and the loss associated is $40,000. B has a probability of 70% and the loss of $30,000. Calculate risk impact (in $s) of each event. Which risk event (A or B) would you prioritize as more important for risk response and why?
9. What is a difference between "assumption" and "constraint" in defining project scope? Give an example of each in a project of laying out a concrete steps (demolishing existing 20 steps and replacing them with new ones). How can risks arise from an assumption and a constraint in this specific project? Give one example of each.
10. What are the missing steps (see below) in the following risk management process framework:
a. Step 1: Plan risk management
b. Step 2: ___________________
c. Step 3: Perform qualitative risk analysis
d. Step 4: Perform quantitative risk analysis
e. Step 5: ___________________
f. Step 6: Monitor and control risks
11. What is a "watch list" of risks? What does it signify?
12. Give an example of a risk event that has positive consequences (i.e. the risk event presents an opportunity or a favorable condition that can have positive effect on project outcomes - schedule, cost, scope or quality). How will you maximize the chance of this event occurring?
13. "Identify Risks" step of the risk management processidentifies both knowable and unknowable risks. True or False __________
14. It may take great deal of time, staff, and money to do risk management plan for a project. Hence, management must decide its cost and benefits and scope (scale) up front. True or False ________
15. Name 3 risk factors the French company missed up front when it tried to do Panama Canal Project? Explain very briefly.
16. Lately, the top management's attitude towards Project Manager Rick Scott's ongoing Millennium Battery Development Project was souring and this created potential for severe funding and staff restrictions. This is an example of individual activity project risk. True or False. ________