CPM CPM Risk Management & Contingency Planning 2 — Questions and Answers
Question 1: Which qualitative risk analysis output helps prioritize risks for further analysis or action?
- Risk probability and impact matrix (Correct answer)
- Probability distributions
- Decision trees
- Sensitivity analysis
Correct answer: Risk probability and impact matrix
A probability and impact matrix maps risks by likelihood and consequence to prioritize which ones need immediate attention or deeper quantitative analysis.
Question 2: A project manager accepts a risk without taking any proactive action. This strategy is best described as:
- Risk avoidance
- Risk mitigation
- Passive acceptance (Correct answer)
- Risk exploitation
Correct answer: Passive acceptance
Passive acceptance involves acknowledging a risk and taking no action unless the risk occurs, typically used for low-priority risks.
Question 3: Which process involves numerically analyzing the effect of identified risks on overall project objectives?
- Qualitative risk analysis
- Quantitative risk analysis (Correct answer)
- Risk identification
- Risk monitoring
Correct answer: Quantitative risk analysis
Quantitative risk analysis uses numerical methods such as Monte Carlo simulation to assess the probability of achieving project objectives given identified risks.
Question 4: When should risk management planning ideally begin on a project?
- After the project charter is approved
- During project execution
- At the start of the planning phase (Correct answer)
- Only after a risk event occurs
Correct answer: At the start of the planning phase
Risk management planning should begin early in the planning phase so that risk processes, roles, and tools are defined before risks are identified.
Question 5: What is a secondary risk?
- A risk identified after project closure
- A risk that arises as a direct result of implementing a risk response (Correct answer)
- A risk shared with a partner organization
- A risk with a low probability score
Correct answer: A risk that arises as a direct result of implementing a risk response
Secondary risks are new risks that emerge as a result of implementing a risk response, requiring the project manager to monitor and plan for them as well.
Question 6: Which CPM risk strategy involves changing the project plan to eliminate a threat entirely?
- Mitigate
- Transfer
- Avoid (Correct answer)
- Accept
Correct answer: Avoid
Risk avoidance changes the project plan to eliminate the threat, such as extending the schedule, changing the approach, or reducing scope.
CPM CPM Risk Management & Contingency Planning 2
Which qualitative risk analysis output helps prioritize risks for further analysis or action?