CAD Risk Management & Mitigation 5

Question 1

Which of the following BEST describes the purpose of a Monte Carlo simulation in risk management?

Accepted Answer

To model the range of possible project outcomes by running thousands of scenario iterations

Answer

Monte Carlo simulation runs thousands of random scenarios using probability distributions to model the range of possible cost and schedule outcomes.

Question 2

A developer integrating a payment API must address the risk of API downtime. Which mitigation approach provides the highest resilience?

Accepted Answer

Implementing a circuit breaker pattern with a fallback payment processor

Answer

A circuit breaker pattern stops repeated calls to a failing service and routes traffic to a fallback, preventing cascading failures.

Question 3

In risk management, what does a 'risk appetite' define?

Accepted Answer

The amount and type of risk an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite is the level and type of risk an organization is prepared to accept while still pursuing its strategic goals.

Question 4

A CAD project uses automated regression testing after every deployment. Which risk does this practice primarily mitigate?

Accepted Answer

Introduction of new defects breaking existing functionality

Answer

Automated regression testing detects when new code changes break previously working functionality, mitigating the risk of regression defects.

Question 5

Which term describes a risk that cannot be further reduced and must be accepted after all feasible mitigation measures are applied?

Accepted Answer

Residual risk

Answer

Residual risk is the remaining risk after all applicable controls and mitigations have been implemented and cannot be eliminated entirely.

(CAD) Certified Application Developer Practice Test