CAPM Risk & Quality 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 moves the financial impact of a risk to a third party such as an insurance company or subcontractor.
Question 2: 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?
- Control chart
- Pareto diagram
- Cause-and-effect diagram (Correct answer)
- Scatter diagram
Correct answer: Cause-and-effect diagram
A cause-and-effect (Ishikawa/fishbone) diagram helps teams systematically identify potential root causes of a defect.
Question 3: 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?
- Risk A at $10,000 (Correct answer)
- Risk B at $6,000
- Risk A at $25,000
- Both are equal at $10,000
Correct 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.
Question 4: Which document formally authorizes the risk management activities and establishes the risk management approach for a project?
- Risk register
- Risk management plan (Correct answer)
- Project charter
- Issue log
Correct answer: Risk management plan
The risk management plan defines the methodology, roles, budget, and timing for risk management activities throughout the project.
Question 5: A project team reviews completed deliverables to confirm they meet defined requirements. This activity is an example of:
- Quality assurance
- Quality control (Correct answer)
- Risk monitoring
- Scope validation
Correct answer: Quality control
Quality control involves inspecting and measuring deliverables to verify they meet quality requirements.
Question 6: Which risk analysis technique uses a branching diagram to calculate the expected monetary value of various decision paths?
- Monte Carlo simulation
- Decision tree analysis (Correct answer)
- Sensitivity analysis
- SWOT analysis
Correct answer: Decision tree analysis
Decision tree analysis maps out possible outcomes of decisions along branches and uses EMV to evaluate the best path.
Question 7: A project manager wants to ensure defects are caught before the product reaches the customer at minimal cost. This best reflects which quality concept?
- Gold plating
- Cost of conformance (Correct answer)
- Cost of nonconformance
- Continuous improvement
Correct answer: Cost of conformance
Cost of conformance refers to money spent on prevention and appraisal activities to avoid failures, such as training and inspections.
CAPM Risk & Quality Management 2
Which risk response strategy involves shifting the negative impact of a risk to a third party?