CPP Risk Management in Process Improvement 2

Question 1

Which of the following is a qualitative risk assessment technique used in process improvement?

Accepted Answer

Risk probability-impact matrix

Answer

Monte Carlo simulation

Answer

Expected Monetary Value (EMV) analysis

Answer

Sensitivity analysis

Question 2

What is the primary goal of a 'risk response plan' in a process improvement project?

Accepted Answer

To define specific actions that will be taken to address identified risks

Answer

To document all risks identified during the risk assessment phase

Answer

To allocate financial reserves across all risk categories equally

Answer

To communicate risk status to executive leadership on a monthly basis

Question 3

Which risk response strategy involves taking actions to reduce the probability or impact of a risk?

Accepted Answer

Risk mitigation

Answer

Risk avoidance

Answer

Risk transfer

Answer

Risk acceptance

Question 4

When should risk management activities be performed during a process improvement project?

Accepted Answer

Continuously throughout the entire project lifecycle

Answer

Only at the project initiation phase

Answer

Only when a risk event actually occurs

Answer

During the closing phase to document lessons learned

Question 5

In process risk management, what is a 'contingency plan'?

Accepted Answer

A pre-defined response plan activated when a specific risk event occurs

Answer

An alternative business process created when the primary process permanently fails

Answer

A financial budget reserve for unexpected project expenditures

Answer

A stakeholder communication plan designed for crisis situations

Question 6

What does 'risk quantification' involve in the context of process improvement?

Accepted Answer

Assigning numerical values to assess the potential financial or operational impact of risks

Answer

Counting the total number of distinct risks identified in a project

Answer

Qualifying vendors and suppliers based on predefined risk criteria

Answer

Creating a risk registry with unique sequential identifiers for each risk

Question 7

Which tool visually displays the relative priority of risks based on their probability and impact scores?

Accepted Answer

Risk heat map

Answer

Fishbone diagram

Answer

Pareto chart

Answer

Control chart