CPE Risk Management & Quality Assurance 2 — Questions and Answers
Question 1: Which risk response strategy involves shifting the negative impact of a risk to a third party, such as through insurance?
- Avoid
- Mitigate
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
Risk transfer moves the financial or operational impact of a risk to another party, typically via insurance or contractual agreements.
Question 2: In Monte Carlo simulation for schedule risk analysis, what does the P80 value represent?
- The most likely completion date
- The date with an 80% probability of being met or exceeded (Correct answer)
- The date with an 80% probability of being missed
- The average of 80 simulation runs
Correct answer: The date with an 80% probability of being met or exceeded
P80 means there is an 80% probability that the project will complete on or before that date based on the simulation results.
Question 3: A Fishbone (Ishikawa) diagram is primarily used in quality management to:
- Track defect frequency over time
- Identify root causes of quality problems (Correct answer)
- Rank defects by financial impact
- Establish control limits for processes
Correct answer: Identify root causes of quality problems
A Fishbone diagram helps teams systematically explore all potential root causes of a quality issue by categorizing contributing factors.
Question 4: Which of the following best describes a 'Risk Breakdown Structure' (RBS)?
- A list of all identified risks sorted by priority
- A hierarchical framework categorizing sources of project risk (Correct answer)
- A Gantt chart showing risk response timelines
- A budget allocation tool for risk reserves
Correct answer: A hierarchical framework categorizing sources of project risk
An RBS organizes risks into hierarchical categories (technical, external, organizational, etc.) to ensure comprehensive risk identification.
Question 5: What is the primary purpose of a quality audit in a construction planning project?
- To approve project deliverables for final payment
- To independently assess whether quality processes are being followed (Correct answer)
- To reassign responsibilities after a defect is found
- To calculate the cost of rework needed
Correct answer: To independently assess whether quality processes are being followed
Quality audits verify that defined quality management processes and standards are being implemented correctly on the project.
Question 6: When performing qualitative risk analysis, a risk with HIGH probability and HIGH impact should be placed in which quadrant of a probability-impact matrix?
- Low priority / monitor only
- Medium priority / contingency plan
- High priority / immediate action required (Correct answer)
- Out of scope / escalate to sponsor
Correct answer: High priority / immediate action required
High probability combined with high impact places a risk in the top-priority quadrant requiring active risk response planning.
Question 7: In project risk management, what is the difference between 'residual risk' and 'secondary risk'?
- Residual risk is larger; secondary risk is smaller
- Residual risk remains after response; secondary risk arises from the response itself (Correct answer)
- Residual risk is unidentified; secondary risk is known
- They are the same concept with different names
Correct answer: Residual risk remains after response; secondary risk arises from the response itself
Residual risks are what remains after mitigation actions, while secondary risks are new risks introduced by implementing the risk response.
CPE Risk Management & Quality Assurance 2
Which risk response strategy involves shifting the negative impact of a risk to a third party, such as through insurance?