CAPM Risk Management 4 — Questions and Answers
Question 1: Which process involves implementing agreed-upon risk response plans and tracking identified risks?
- Plan Risk Responses
- Identify Risks
- Monitor Risks (Correct answer)
- Perform Qualitative Risk Analysis
Correct answer: Monitor Risks
Monitor Risks tracks the implementation of risk response plans and evaluates their effectiveness throughout the project.
Question 2: A project manager assigns ownership of a risk to a vendor. Which risk response strategy is being used?
- Mitigate
- Exploit
- Transfer (Correct answer)
- Share
Correct answer: Transfer
Transfer moves the risk and its ownership to a third party such as a vendor, usually through contracts.
Question 3: Which of the following inputs is used to perform quantitative risk analysis?
- Stakeholder register
- Risk register (Correct answer)
- Project charter
- Responsibility assignment matrix
Correct answer: Risk register
The risk register, containing prioritized risks from qualitative analysis, is a key input to quantitative risk analysis.
Question 4: The risk management plan is created as an output of which process?
- Identify Risks
- Plan Risk Management (Correct answer)
- Perform Qualitative Risk Analysis
- Monitor Risks
Correct answer: Plan Risk Management
The Plan Risk Management process produces the risk management plan, which defines how risk activities will be conducted.
Question 5: An opportunity response strategy where an organization teams with another to share both the opportunity and its resources is called:
- Exploit
- Enhance
- Share (Correct answer)
- Accept
Correct answer: Share
Share involves partnering with another party to capture an opportunity that the team could not fully capitalize on alone.
Question 6: Which type of risk analysis technique simulates thousands of possible project outcomes to calculate a probability distribution?
- Decision tree analysis
- Monte Carlo simulation (Correct answer)
- SWOT analysis
- Delphi technique
Correct answer: Monte Carlo simulation
Monte Carlo simulation runs thousands of iterations using ranges of input values to produce probability distributions of outcomes.
Question 7: Workarounds are unplanned responses to risks that were:
- Accepted with contingency reserves
- Identified but not responded to
- Previously unidentified (Correct answer)
- Transferred to a third party
Correct answer: Previously unidentified
Workarounds are reactive responses to risks that were not anticipated or not included in the risk register.
CAPM Risk Management 4
Which process involves implementing agreed-upon risk response plans and tracking identified risks?