CPSM Risk Assessment & Mitigation

Question 1

What is the FIRST step in the risk management process for a CPSM professional?

Accepted Answer

Identifying potential risks through systematic analysis of all project and operational areas

Answer

Implementing solutions for known risks immediately

Answer

Purchasing insurance to cover all possible risks

Answer

Ignoring low-probability risks to focus on likely ones

Question 2

How does a CPSM professional prioritize identified risks?

Accepted Answer

By assessing the probability of occurrence and potential impact on objectives

Answer

By addressing the most recent risks first

Answer

By focusing only on financial risks

Answer

By alphabetical order of risk descriptions

Question 3

What is a risk mitigation strategy in CPSM practice?

Accepted Answer

A planned approach to reduce the probability or impact of an identified risk

Answer

Accepting all risks without taking any preventive action

Answer

Transferring all risks to clients through contract terms

Answer

Eliminating all risk from every project

Question 4

When should a CPSM professional update the risk register?

Accepted Answer

Continuously throughout the project lifecycle as new risks emerge or existing risks change

Answer

Only at the start of each project

Answer

Annually during strategic planning sessions

Answer

Only when a risk event actually occurs

Question 5

What is a contingency plan in CPSM risk management?

Accepted Answer

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

Answer

An emergency budget for unexpected expenses

Answer

A list of excuses for project failures

Answer

A backup plan created after a crisis has already started

Question 6

How does risk tolerance affect decision-making in CPSM?

Accepted Answer

It defines the acceptable level of risk the organization is willing to accept in pursuit of objectives

Answer

It requires eliminating all possible risks before proceeding

Answer

It is only relevant to financial investment decisions

Answer

It remains constant regardless of project type or organizational context