CAD Risk Management & Mitigation 3 — Questions and Answers
Question 1: An application developer is evaluating risks for a cloud migration project. Which type of risk assessment method assigns numerical values to risks?
- Qualitative risk assessment
- Quantitative risk assessment (Correct answer)
- Delphi technique
- SWOT analysis
Correct answer: Quantitative risk assessment
Quantitative risk assessment uses numerical values and statistical methods to express risk in measurable terms such as dollar amounts.
Question 2: A software team uses a risk burndown chart. What does this chart primarily track?
- The number of bugs fixed over time
- The reduction in total risk exposure across sprints (Correct answer)
- Developer velocity per iteration
- The cost of implementing risk controls
Correct answer: The reduction in total risk exposure across sprints
A risk burndown chart visualizes how total risk exposure decreases over time as risks are mitigated or resolved during a project.
Question 3: Which of the following BEST describes a risk trigger in project management?
- The action taken to avoid a risk
- An early warning sign that a risk event is about to occur (Correct answer)
- The total cost associated with a risk
- The person responsible for managing a risk
Correct answer: An early warning sign that a risk event is about to occur
A risk trigger is an indicator or symptom that signals a risk event is imminent, prompting execution of the risk response plan.
Question 4: When building a new authentication module, a developer identifies dependency rot as a risk. Which mitigation technique is MOST effective?
- Manual code reviews every quarter
- Automated dependency scanning integrated into the CI/CD pipeline (Correct answer)
- Limiting the number of external libraries used
- Pinning all library versions permanently
Correct answer: Automated dependency scanning integrated into the CI/CD pipeline
Integrating automated dependency scanners (e.g., Dependabot, Snyk) into CI/CD continuously detects vulnerable or outdated dependencies.
Question 5: A project risk has a 30% probability of occurring and an impact of $50,000. What is the Expected Monetary Value (EMV)?
- $15,000 (Correct answer)
- $35,000
- $50,000
- $150,000
Correct answer: $15,000
EMV = Probability × Impact = 0.30 × $50,000 = $15,000.
Question 6: Which risk response strategy is being used when a company purchases cyber liability insurance for its application?
- Risk avoidance
- Risk mitigation
- Risk transfer (Correct answer)
- Risk acceptance
Correct answer: Risk transfer
Purchasing insurance transfers the financial consequences of a risk to a third party (the insurer).
Question 7: In a risk management plan, what is the role of a Risk Owner?
- To approve the project budget for risk contingencies
- To be accountable for monitoring and executing the response for a specific risk (Correct answer)
- To identify all risks at the start of the project
- To audit risk management procedures after project closure
Correct answer: To be accountable for monitoring and executing the response for a specific risk
A Risk Owner is assigned accountability for a specific risk, ensuring its response plan is monitored and executed appropriately.
CAD Risk Management & Mitigation 3
An application developer is evaluating risks for a cloud migration project.
Which type of risk assessment method assigns numerical values to risks?