Question 1

According to Tzvi Raz, Aaron Shenhar, and Dov Dvir's risk management studies, which of the following is true about risk management practices?

Accepted Answer

A)   Risk management is widely used.
B)   The projects that were most likely to have a risk management plan were those that were actually high risk.
C)   When risk management practices were applied to projects, they appeared to be moderately related to the success of the project.
D)   The risk management approach influenced the meeting of project schedules and cost goals but exerted more influence on project product quality.
E)   Good risk management increases the likelihood of a successful project.F) B) and D)
G) B) and C)

Question 2

Risk seems to have an) _____ correlation to complexity.

Accepted Answer

The answer of Risk seems to have an) _____ correlation...

Question 3

On highly complex projects, _____.

Accepted Answer

A)   basic measures such as percentage of activities completed and percentage of budget spent are adequate for budget evaluation
B)   the process for evaluating risk is more informal with risk assessment meetings conducted every once in a while to assess risks at different phases of the project
C)   an outside expert may be included in the risk assessment process and the risk assessment plan may take a more prominent role in the project execution plan
D)   the project management team may develop a list of items perceived to be higher risk and track them during project reviews
E)   the project manager may informally track items that may be considered risk itemsF) A) and C)
G) A) and E)

Question 4

Risks that can be anticipated, such as exceptionally bad weather, are called _____.

Accepted Answer

A)   risk events
B)   uncertain risks
C)   known risks
D)   random risks
E)   risk aversionsF) None of the above
G) All of the above

Question 5

As the project progresses into the execution phase, _____.

Accepted Answer

A)   risks need to be checked off on activities that have been performed
B)   the total risk on the project typically increases
C)   risks are identified with each major group of activities
D)   a risk response plan can be used to identify increasing levels of detailed risk analysis
E)   the risk breakdown structure needs to be examined to be sure all the risk events have been avoidedF) D) and E)
G) C) and D)

Question 6

Risk sharing involves partnering with others to share responsibility for the risk activities.

Accepted Answer

A) True 
 B)False

Question 7

After potential risks have been identified, the project team then evaluates the risk based on the probability that the risk event will occur and the potential loss associated with the event.

Accepted Answer

A) True 
 B)False

Question 8

On global projects with a large amount of political risk, the highest portion of risk may be _____.

Accepted Answer

A)   in the execution phase
B)   in the planning stage
C)   toward the end of the project
D)   in the early phases of the project
E)   during the procurement of goods and servicesF) A) and C)
G) A) and B)

Question 9

Describe the Monte Carlo simulation.

Accepted Answer

The Monte Carlo simulation simulates a p...

Question 10

The purchase of insurance on certain items is a risk sharing method.

Accepted Answer

A) True 
 B)False

Question 11

On projects with a low complexity profile, _____.

Accepted Answer

A)   the process for evaluating risk is more formal with risk assessment meetings held during the life of the project to assess risks at different phases of the project
B)   an outside expert may be included in the risk assessment process and the risk assessment plan may take a more prominent role in the project execution plan
C)   the project management team may develop a list of items perceived to be higher risk and track them during project reviews
D)   the project manager may informally track items that may be considered risk items
E)   statistical models are sometimes used to evaluate risk because there are too many different possible combinations of risks to calculate them one at a timeF) A) and E)
G) A) and B)

Question 12

The possible loss that is associated with the business purpose of the project is called _____.

Accepted Answer

A)   project risk
B)   organizational risk
C)   strategic risk
D)   external risk
E)   financial riskF) All of the above
G) A) and E)

Question 13

The _____ is the plan to reduce or eliminate loss from unexpected events.

Accepted Answer

A)   risk transfer plan
B)   risk avoidance plan
C)   risk acceptance plan
D)   risk deflection plan
E)   risk mitigation planF) All of the above
G) B) and E)

Question 14

_____ includes both the identification of potential risk and the evaluation of the potential impact of the risk.

Accepted Answer

The answer of _____ includes both the identification of potential...

Question 15

Which of the following is true about project risk?

Accepted Answer

A)   Risk seems to have a negative correlation to complexity.
B)   High-risk projects are in very few cases highly complex.
C)   The risk breakdown analysis explores the project from the perspective of what elements on the project add to project complexity.
D)   The project team develops a risk breakdown structure that addresses the items that are identified as high risk.
E)   The process of conducting a risk analysis focuses on developing an understanding of what can go wrong and the likelihood that it will go wrong.F) All of the above
G) B) and E)

Question 16

A project with new and emerging technology will have a low complexity rating and a correspondingly low risk.

Accepted Answer

A) True 
 B)False

Question 17

Proactive project managers:

Accepted Answer

A)   do not consider risks.
B)   prefer to be optimistic.
C)   will develop elaborate risk management programs for their projects.
D)   are more confident in their ability to handle unexpected events without prior planning.
E)   avoid taking risks whenever possible.F) A) and B)
G) A) and C)

Question 18

What are the elements of risk management during the initiation phase of the project?

Accepted Answer

Risk is associated with things that are ...

Question 19

Which of the following is true about contingency funds?

Accepted Answer

A)   Contingency funds are funds set aside by the client to address unforeseen events that cause the project costs to increase.
B)   Projects with a high risk profile will typically have a small contingency budget.
C)   Contingency is typically managed as multiple line items in the project budget.
D)   Allocating the contingency budget to the items in the budget that have low risk allows the project team to track the use of contingency against the risk plan.
E)   The availability of contingency funds in the line item budget may increase the use of contingency funds to solve problems rather than finding alternative solutions.F) B) and C)
G) All of the above

Question 20

High scores for environmental complexity imply high risks for delay and _____.

Accepted Answer

A)   unknown factors
B)   limited resources
C)   expensive resolution to lawsuits
D)   organizational complexity
E)   lack of clarity in project and scope statementsF) None of the above
G) B) and D)

Exam 11: Managing Project Risk

_____ includes both the identification of potential risk and the evaluation of the potential impact of the risk.

Correct AnswerverifiedShow Answer

The purchase of insurance on certain items is a risk sharing method.

Correct AnswerverifiedShow Answer

On global projects with a large amount of political risk, the highest portion of risk may be _____.

Correct AnswerverifiedShow Answer

On highly complex projects, _____.

Correct AnswerverifiedShow Answer

Risks that can be anticipated, such as exceptionally bad weather, are called _____.

Correct AnswerverifiedShow Answer

Describe the Monte Carlo simulation.

Correct AnswerverifiedThe Monte Carlo simulation simulates a p...View AnswerShow Answer

Risk sharing involves partnering with others to share responsibility for the risk activities.

Correct AnswerverifiedShow Answer

On projects with a low complexity profile, _____.

Correct AnswerverifiedShow Answer

Which of the following is true about project risk?

Correct AnswerverifiedShow Answer

The possible loss that is associated with the business purpose of the project is called _____.

Correct AnswerverifiedShow Answer

Which of the following is true about contingency funds?

Correct AnswerverifiedShow Answer

The _____ is the plan to reduce or eliminate loss from unexpected events.

Correct AnswerverifiedShow Answer

A project with new and emerging technology will have a low complexity rating and a correspondingly low risk.

Correct AnswerverifiedShow Answer

High scores for environmental complexity imply high risks for delay and _____.

Correct AnswerverifiedShow Answer

As the project progresses into the execution phase, _____.

Correct AnswerverifiedShow Answer

According to Tzvi Raz, Aaron Shenhar, and Dov Dvir's risk management studies, which of the following is true about risk management practices?

Correct AnswerverifiedShow Answer

After potential risks have been identified, the project team then evaluates the risk based on the probability that the risk event will occur and the potential loss associated with the event.

Correct AnswerverifiedShow Answer

Proactive project managers:

Correct AnswerverifiedShow Answer

What are the elements of risk management during the initiation phase of the project?

Correct AnswerverifiedRisk is associated with things that are ...View AnswerShow Answer

Risk seems to have an) _____ correlation to complexity.

Correct AnswerverifiedShow Answer

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The Monte Carlo simulation simulates a p...
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Risk is associated with things that are ...
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Correct Answer
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