Risk & Quality Management Flashcards

Which risk response strategy involves shifting the negative impact of a risk to a third party?

Answer: Transfer

Transfer moves the financial impact of a risk to a third party such as an insurance company or subcontractor.

A project manager discovers that a supplier is consistently delivering components that fail quality inspections. Which quality tool is BEST for identifying the root cause?

Answer: Cause-and-effect diagram

A cause-and-effect (Ishikawa/fishbone) diagram helps teams systematically identify potential root causes of a defect.

The probability of Risk A is 0.4 and its impact is $25,000. The probability of Risk B is 0.6 and its impact is $10,000. Which risk has the higher expected monetary value?

Answer: Risk A at $10,000

EMV = Probability × Impact; Risk A = 0.4 × $25,000 = $10,000, Risk B = 0.6 × $10,000 = $6,000, so Risk A is higher.

Which document formally authorizes the risk management activities and establishes the risk management approach for a project?

Answer: Risk management plan

The risk management plan defines the methodology, roles, budget, and timing for risk management activities throughout the project.

A project team reviews completed deliverables to confirm they meet defined requirements. This activity is an example of:

Answer: Quality control

Quality control involves inspecting and measuring deliverables to verify they meet quality requirements.

Which risk analysis technique uses a branching diagram to calculate the expected monetary value of various decision paths?

Answer: Decision tree analysis

Decision tree analysis maps out possible outcomes of decisions along branches and uses EMV to evaluate the best path.

A project manager wants to ensure defects are caught before the product reaches the customer at minimal cost. This best reflects which quality concept?

Answer: Cost of conformance

Cost of conformance refers to money spent on prevention and appraisal activities to avoid failures, such as training and inspections.