Chapter 10 - Project Risk Planning TRUE/FALSE 1. It is impossible to remove all sources of risk on a project. ANS: T 2. A risk is anything that may impact the project team’s ability to achieve the general project success measures and the specific project stakeholder priorities. ANS: T 3. When the impact of an event is negative, it is considered a risk; when the impact is positive, the event is considered an opportunity. ANS: F 4. The process of deciding how to approach, plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM). ANS: F 5. The risk management plan is the document that describes how project risk management will be structured and performed on a project. ANS: T 6. A risk management plan should define who has responsibility for causing each risk and hold the responsible party directly accountable for developing an appropriate solution. ANS: F 7. The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project. ANS: F 8. The process of determining which risks might affect the project and documenting their characteristics is known as risk charting. ANS: F 9. The primary output of risk identification is the Risk Identification Matrix (RIM). ANS: F 10-1 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, or distributed the prior consent of the publisher. This study source was downloaded by 100000886107283 fromcopied, CourseHero.com onwithout 06-04-2024 08:06:59 GMT -05:00 https://www.coursehero.com/file/10190773/test-bank-PM-Chapt-10/ 10. The risk register is a living document and new risks can be added as they are identified. ANS: T 11. When complete, the risk register presents the results of both qualitative and quantitative risk analysis as well as risk response planning. ANS: T 12. Quantitative risk analysis is the process of prioritizing risks for subsequent further analysis or action by assessing and combining their probability and impact. ANS: F 13. The primary questions project teams use in qualitative risk analysis are “What is the nature of this risk?” and “Who will be responsible for addressing it?”. ANS: F 14. Quantitative risk analysis is the process of numerically analyzing the effect on overall project objectives of identified risks. ANS: T 15. Generally, once risks have been identified and analyzed, the project team decides how to handle each risk. ANS: T 16. Risk response planning focuses on developing options and actions for every identified risk. ANS: F 17. In some cases, project teams will elect to reduce a threat rather than eliminate it because the effort to completely eliminate a threat is unjustified. ANS: T 18. Risk response strategies such as acceptance and conducting further research apply to both threats and opportunities. ANS: T 19. Risk response strategy decisions should reflect a thorough understanding of the priorities that key stakeholders have relative to project objectives. ANS: T 20. Sometimes the risks posed by a project are so great that an appropriate risk response is to not perform the project at all. ANS: T This study source was downloaded by 100000886107283 from CourseHero.com on 06-04-2024 08:06:59 GMT -05:00 https://www.coursehero.com/file/10190773/test-bank-PM-Chapt-10/ 21. and opportunities. Risk response strategies such as mitigation and exploitation apply to both threats ANS: F MULTIPLE CHOICE 1. Which of the following is a benefit that can be attributed to the effective use of a risk management plan? a. It enables project managers to eliminate or reduce the impact of some threats. b. It enables project managers to capitalize on some opportunities. c. It facilitates communication with project stakeholders. d. all of these ANS: D 2. Risk is often considered in terms of impact to project success. Which of the following is a valid measure of project success? a. meeting agreements related to cost, schedule and performance b. customer related measures such as customer satisfaction c. measures related to the firm’s future including market share and commercial success d. all of these ANS: D 3. Which of the following accurately describes risk in project management? a. The impact of risk may be positive or negative. b. Some projects are void of risk. c. Risk assessment should remain objective and uninfluenced by stakeholder priorities. d. all of these ANS: A 4. Which of the following criteria can be used to categorize project risks? a. the phase of the project in which the risk may occur b. the project objective that may be impacted by the risk c. whether the risk is internal or external to the performing organization d. all of these ANS: D 10-3 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, or distributed the prior consent of the publisher. This study source was downloaded by 100000886107283 fromcopied, CourseHero.com onwithout 06-04-2024 08:06:59 GMT -05:00 https://www.coursehero.com/file/10190773/test-bank-PM-Chapt-10/ 5. Which of the following methods has proven a useful technique to help project teams identify the risks that might impact the project? a. reviewing risk checklists b. brainstorming among team members and subject matter experts c. interviewing stakeholders d. all of these ANS: D This study source was downloaded by 100000886107283 from CourseHero.com on 06-04-2024 08:06:59 GMT -05:00 https://www.coursehero.com/file/10190773/test-bank-PM-Chapt-10/ 6. Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. Which of the following approaches relies upon an understanding of cause and effect relationships to identify risks? a. develop a flow chart that shows how data flows from one person to another b. conduct a root cause analysis c. examine triggers that a risk is about to occur d. all of these ANS: D 7. Which of the following describes the effective use of a risk register? a. The final risk register is typically completed during risk identification. b. Items such as the probability of occurrence and impact are typically added to the risk register subsequent to risk identification. c. The risk register includes only the risk, a description and the appropriate category. d. none of these ANS: B 8. Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review? a. review the project schedule to determine if certain people are overloaded b. review previous projects to verify that each current assumption is correct c. review the communication plan to determine where poor communications could cause a problem d. none of these ANS: C 9. Which of the following describes the activities appropriately performed by the project team during qualitative risk analysis? a. Team members assess the probability of occurrence and severity of impact for identified risks. b. Team members develop contingency plans for even minor risks to avoid adverse impacts to project objectives. c. Team members identify potential risk events. d. all of these ANS: A 10-5 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, or distributed the prior consent of the publisher. This study source was downloaded by 100000886107283 fromcopied, CourseHero.com onwithout 06-04-2024 08:06:59 GMT -05:00 https://www.coursehero.com/file/10190773/test-bank-PM-Chapt-10/ 10. Which of the following describes the appropriate use of a cause and effect diagram to support project risk analysis? a. The project team begins by identifying the risk as the primary cause to be examined. b. Once the effects are understood, the team can use them to serve as triggers. c. It is often easier to alter the effect by changing the underlying cause. d. all of these ANS: C This study source was downloaded by 100000886107283 from CourseHero.com on 06-04-2024 08:06:59 GMT -05:00 https://www.coursehero.com/file/10190773/test-bank-PM-Chapt-10/ Powered by TCPDF (www.tcpdf.org)
