CAPM Risk Management 2 — Questions and Answers
Question 1: Which risk response strategy involves shifting the negative impact of a risk to a third party?
- Avoid
- Mitigate
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
Transfer shifts risk ownership to a third party, such as through insurance or outsourcing, without eliminating the risk.
Question 2: A project manager discovers a risk that was not identified during planning. This is best described as a:
- Residual risk
- Secondary risk
- Unknown unknown (Correct answer)
- Known unknown
Correct answer: Unknown unknown
Unknown unknowns are risks that were not identified and could not have been anticipated during planning.
Question 3: Which document records all identified risks, their characteristics, and risk response plans?
- Risk management plan
- Risk register (Correct answer)
- Issue log
- Change log
Correct answer: Risk register
The risk register is the primary document for capturing identified risks, their analysis results, and planned responses.
Question 4: A new risk that arises as a direct result of implementing a risk response is called a:
- Residual risk
- Secondary risk (Correct answer)
- Trigger condition
- Workaround
Correct answer: Secondary risk
Secondary risks emerge as a direct consequence of implementing a risk response and must also be planned for.
Question 5: Which of the following best describes a risk trigger?
- The probability that a risk will occur
- A warning sign that a risk is about to occur (Correct answer)
- The impact of a risk on project objectives
- A planned response to a risk event
Correct answer: A warning sign that a risk is about to occur
A risk trigger is an indicator or warning sign that reveals a risk event is imminent or has occurred.
Question 6: During a risk workshop, the team uses a scale of Very Low, Low, Medium, High, and Very High. This is an example of:
- Quantitative risk analysis
- Qualitative risk analysis (Correct answer)
- Monte Carlo simulation
- Decision tree analysis
Correct answer: Qualitative risk analysis
Qualitative risk analysis uses subjective scales to prioritize risks based on probability and impact without numerical calculation.
Question 7: Which risk response strategy for opportunities involves expanding the positive impact to ensure the opportunity is realized?
- Share
- Enhance
- Exploit (Correct answer)
- Accept
Correct answer: Exploit
Exploit eliminates the uncertainty by taking definitive action to ensure the positive opportunity is captured.
CAPM Risk Management 2
Which risk response strategy involves shifting the negative impact of a risk to a third party?