CAPM Risk & Quality Management 4 — Questions and Answers
Question 1: Which quantitative risk analysis tool simulates thousands of possible project outcomes by varying input values within defined ranges?
- Decision tree analysis
- Monte Carlo simulation (Correct answer)
- Sensitivity analysis
- Probability and impact matrix
Correct answer: Monte Carlo simulation
Monte Carlo simulation runs thousands of iterations with random variable inputs to produce a probability distribution of possible project outcomes.
Question 2: A project manager adds extra time to a schedule to account for identified risks. This buffer is called:
- Management reserve
- Contingency reserve (Correct answer)
- Float
- Budget reserve
Correct answer: Contingency reserve
Contingency reserves are planned time or budget buffers specifically allocated to address identified risks within the project baseline.
Question 3: The Manage Quality process primarily aims to:
- Inspect deliverables for defects
- Audit quality processes for compliance and improvement (Correct answer)
- Update the quality management plan
- Assign risk owners to quality risks
Correct answer: Audit quality processes for compliance and improvement
Manage Quality (formerly Quality Assurance) focuses on auditing processes to confirm quality standards are being applied and identifies improvements.
Question 4: Which technique involves comparing project practices against those of other organizations to identify performance improvements?
- Benchmarking (Correct answer)
- Root cause analysis
- Statistical sampling
- Inspection
Correct answer: Benchmarking
Benchmarking compares actual or planned practices against those of comparable projects to identify best practices and improvement opportunities.
Question 5: A risk that is not identified during planning but emerges unexpectedly during execution is called a:
- Residual risk
- Secondary risk
- Unknown-unknown risk (Correct answer)
- Trigger risk
Correct answer: Unknown-unknown risk
Unknown-unknown risks (unk-unks) are those that cannot be anticipated and are addressed through management reserves and workarounds.
Question 6: Which quality management concept states that it is less expensive to build quality into a product than to correct defects after delivery?
- Kaizen
- Prevention over inspection (Correct answer)
- Continuous improvement
- Gold plating
Correct answer: Prevention over inspection
Prevention over inspection is a core quality principle emphasizing that designing quality in from the start reduces overall costs compared to finding and fixing defects later.
Question 7: A risk response that introduces a new risk as a result of implementing the original response is called a:
- Residual risk
- Secondary risk (Correct answer)
- Trigger condition
- Workaround
Correct answer: Secondary risk
Secondary risks are new risks that arise as a direct result of implementing a risk response and must also be identified and managed.
CAPM Risk & Quality Management 4
Which quantitative risk analysis tool simulates thousands of possible project outcomes by varying input values within defined ranges?