CPE Risk Management and Contingency Planning 3

Question 1

A risk that has been identified but for which no active response plan is developed is said to be:

Accepted Answer

Accepted passively

Answer

Passive acceptance means acknowledging the risk exists but taking no preemptive action, relying on contingency reserves if it occurs.

Question 2

In risk analysis, 'residual risk' refers to:

Accepted Answer

The remaining risk exposure after response strategies have been applied

Answer

Residual risk is the leftover exposure that remains after mitigation or other response measures have been implemented.

Question 3

Which AACE International recommended practice provides guidance on cost estimate classification and contingency ranges?

Accepted Answer

RP 18R-97

Answer

AACE RP 18R-97 establishes the cost estimate classification system linking estimate class to expected accuracy and contingency ranges.

Question 4

A project team decides to reduce scope to eliminate a high-probability, high-impact risk. This is an example of:

Accepted Answer

Risk avoidance

Answer

Risk avoidance involves changing the plan to eliminate the risk entirely, often by removing the risky scope element.

Question 5

What is 'secondary risk' in the context of project risk management?

Accepted Answer

A new risk introduced by a risk response action

Answer

Secondary risks arise as a direct result of implementing a risk response and must themselves be planned for.

(CPE) Certified Professional Estimator Practice Test