1- You have to develop a website for your project and members of your IT department have no experience in developing websites. You are unsure as to what the website should contain so you choose to outsource the website development to a firm that has a wide experience and knowledge in website development. Which of the following is NOT true as it relates to transferring of risk to a contractor?

1. 1) Cost reimbursable contracts leave more of the risk with the customer than with the sub-contractor
2. Cost reimbursable contract helps reduce cost if there are mid-project changes
3. Transferring risk requires payment of a risk premium
4. 4) Fixed price contracts is best suited to transfer risk to the seller when the design specifications are vague

2- Based on his own experience Mr. Idowu knows that their is a high probability that an event will not be done on time. Mr. Idowu chooses to mitigate the risk by using PERT scheduling. What PERT formula will be best suited to mitigate the risk of the event being done on time?

1. (20 + 2ML + 2P) / 6
2. (40 + ML + P) / 6
3. (0 + 2ML + 3P) / 6
4. (0 + 4ML + P) / 6

3- Increased frequency of project monitoring is useful in dealing with cost and technical risk. What is the risk response strategy employed in this instance?

1. Transfer
2. Mitigate
3. Accept
4. Avoid

4- Ragul is in the process of preparing a Risk Management Plan for his project. Which of the following will his Risk Management Plan

1. Risks categories, Triggers, Inputs to other processes
2. Risk Response Audits, Earned Value Analysis, Technical Performance Measurement
3. Budgeting, Timing and Risk Categories
4. Avoided, Transferred, Mitigated and Accepted Risks

5- In which of the following processes would you determine the total dollar value of the risks that your project is exposed to?

1. Monitoring and Control Risks
2. Plan Risk Management
3. Perform Qualitative Risk Analysis
4. Identify Risks

6- In your project, you have identified important risks, and planned appropriate responses to the risks. Some risks, for example the possibility of natural disasters, has been documented and accepted in your risk management plan. If there are risks that happen because of the response measures that you took steps, then such risks are called:

1. Residual Risks
2. Subsequent Risks
3. Unidentifiable Risks
4. Secondary Risks

7-There are many inputs to risk management planning. Which one of the following is NOT one of those inputs?

1. The project charter
2. Expert judgment
3. Defined roles and responsibilities
4. WBS

8- Ali is a Project Manager for Green Valley project. Five hundred and twenty two risks have been identified? Ali is pressing ahead and is now doing a decision tree analysis on one of the events. What has Ali neglected to do?

1. Identify Risks
2. Plan Risk responses
3. Perform Qualitative risk analysis
4. Perform Quantitative risk analysis

9- You are the project manager of a deep sea oil-exploration project. You know that you cannot plan for all eventualities so you establish a contingency reserve, including amounts for time, money and resources to handle known or unknown risks. This is an example of:

1. Risk Avoidance
2. Improper risk planning because all risks should be properly identified and accounted for.
3. Risk Transfer
4. Active Risk Acceptance

10- Which of the following is relevant to how to respond to overall project risk?

Individual risk events

1. Risk Register
2. Stakeholder Tolerance
3. Get Help
4. Contingency funds

11- Rafsan decides to change the project plan to eliminate the risk or the condition that causes the risk in order to protect the project objectives from its impact. What type of risk response strategy is Rafsan doing?

1. Avoidance
2. Mitigation
3. Transfer
4. Acceptance

12- Nitika is in charge of a project. During which phase of the project would she encounter the lowest amount at stake?

1. Execution
2. Post project evaluation
3. Conceptual
4. Implementation