Prep Questions: Please answer the following questions and explain where necessary

QUESTION 1. An organization wishes to ensure that the opportunity arising from risk with positive impact is realized. This organization should:

1. Avoid the risk.
2. Exploit the risk.
3. Mitigate the risk.
4. Accept the risk.

QUESTION 2.

Acceptance is a strategy adopted because it is not possible to eliminate all risks from a project. This strategy indicates that the project management team has decided not to change the project management plan to deal with a risk. What action does passive acceptance require?

1. Passive acceptance requires no action.
2. Passive acceptance requires no action except to document the strategy, leaving the project team to deal with the risk as they occur.
3. Passive acceptance is no longer adopted in projects and is a poor project management practice.
4. Passive acceptance requires no action except to document the strategy and come up with a risk management strategy.

QUESTION 3.

Your team worked diligently to identify a large number of risks on pharmaceutical development project. At this time, the risk register includes risks related to government regulations, risks involved in production and testing, and risk related to introducing a new product to the already flooded market, as well as many other areas of potential risks. Before proceeding with the project, these risks must be assessed, and risk response plans must be developed for the highest - risking risks. All the following are factors in the assessment of project risk except:

1. Insurance premiums
2. Risk events
3. Risk probability
4. Amount at stake

QUESTION 4. The technique under the quantitative risk analysis which is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen is known as:

1. Modeling and simulation
2. Sensitivity analysis
3. Expected Monetary value analysis.
4. Expert judgement

QUESTION 5.

You have identified several risks on your project for which purchasing insurance is a possibility. The insurance company your firm uses has quoted reasonable rates, and your analysis shows that purchasing insurance makes sense as a contingency plan in these cases. Your organization has a low threshold for risk but wants to keep costs in line as the profit margin on the product of this project is low. The strategy of purchasing insurance is best considered an example of risk:

1. Transference
2. Avoidance
3. Escalation
4. Acceptance

QUESTION 6. During the plan risk management process, assigning ------------- will help you and the project team identify all important risks and work more effectively during the identification process.

1. Risk factors
2. Blame
3. Risk categories
4. Risk mitigation plans

QUESTION 7.

Emily is a project manager managing a town development project. Emily has set up a series of interviews with various stakeholders to gather some experimental and historical information on risks. Which phase is this likely to happen?

1. Perform Quality risk analysis.
2. Understand risks.
3. Perform quantitative risk analysis.
4. Plan risk response

QUESTION 8: During which risk management process is a determination made to transfer risk?

1. Plan risk responses
2. Identify risks.
3. Implement risk responses.
4. Monitor risks

QUESTION 9: A project manager is quantifying risks for her project. Several of her experts are off - site but wish to be included. How can this be done?

1. Apply the critical path method.
2. Use facilitation techniques.
3. Perform Monte Carlo analysis using the internet as a tool.
4. Determine options for recommended corrective action.

QUESTION 10:

You are iterating the project management plan and will be meeting with the sponsors to get approval. There have been some problems on recent projects because the projects were started quickly, and it was assumed that there would be few challenges. You know that the sponsors will want assurance that this project will not have similar issues. You have evaluated the approach and have planned the project, including how you will manage risk, in order to deliver a better outcome. You have a few minor risks on the watch list. What, if anything, should be done to those risks?

1. Document them and give them to them customer.
2. Document them and set them aside because they are already covered in your contingency plans.
3. Document them for historical use on other projects
4. Document them and revisit them during project management and controlling.

QUESTION 11:

The project has been chartered to address concerns of low level of customer satisfaction with the help desk of a large online retailer. You and your team are considering options including upgrading computer systems and software programs, adding additional help desk staff, and improving help desk training. You realized the impact of such changes will be difficult to measure, and you are finding it challenging to evaluate the exact cost impact of risks and responses the team has identified. You should evaluate on a(n):

1. Numerical basis
2. Quantitative basis
3. Econometric basis
4. Qualitative basis

QUESTION 12:

Which of the following tools and techniques is not used in the process of identify risks?

1. Diagramming techniques
2. SWOT Analysis
3. Checklist analysis
4. Risk categorization

QUESTION 13:

The process of control risks does not have one of the following as an output. Which one is it?

1. Change request.
2. Risk register
3. OPA updates
4. Work performance information

QUESTION 14: A risk is defined as --------- event or condition that, if it occurs, has a positive or negative effect on one or more project --------.

1. Sure, goal
2. Definite, uncertainties
3. Uncertain, objectives
4. Indefinite, probabilities.

QUESTION 15:

Which strategy attempts to reduce the probability and / or the impact of a risk to the point where the risk can be accepted?

1. Determine the overall risk ranking for the project.
2. Perform risk mitigation.
3. Conduct a simulation.
4. Involve other stakeholders.