Free Project Risk Management MCQ Question and Answers — Questions and Answers
Question 1: You are utilizing the quantitative risk analysis methodology' interviewing method. Which of the ensuing assertions is accurate?
- Only project team members will be interviewed.
- Quantitative risk analysis results in a high, medium or low ranking for a given risk.
- The information gathered depends on the type of probability distribution used
- Subject matter experts will be interviewed, even if they are not part of the project team, and the information derived will be used in your estimated monetary value analysis. (Correct answer)
Correct answer: Subject matter experts will be interviewed, even if they are not part of the project team, and the information derived will be used in your estimated monetary value analysis.
Explanation: <br>
Interviewing subject-matter experts will help you gather the pertinent data; they are not required to be on the project team.
Question 2: You inform your project team during a status meeting that your risk register is only as good as the steps you take to manage the risk. If you don't also implement the responses, simply finding and documenting them won't assist. The overall risk exposure can only be handled pro-actively if ______ expends the necessary amount of effort in putting the responses into practice. You are talking about:
- Risk managers
- Risk response owners
- Risk owners (Correct answer)
- The team members themselves
Correct answer: Risk owners
Explanation: <br>
Monitoring the risks and putting a risk response plan in place are the responsibilities of designated risk owners. Owners of risk response and risk managers are not terminology from the PMBOK Guide.
Question 3: What distinguishes a risk audit from a risk review in particular?
- A risk audit is a tool and technique of control risks, while risk review is an output of control risks.
- A risk audit identifies new risks, reevaluates existing risks, and closes risks that are out of date. A risk review evaluates and documents the success of risk responses as well as the effectiveness of the risk management process.
- A risk review is the process of identifying new risks, reevaluating existing risks, and closing risks that are out of date. A risk audit investigates and documents the effectiveness of risk responses as well as the effectiveness of the risk management process. (Correct answer)
- There is no difference
Correct answer: A risk review is the process of identifying new risks, reevaluating existing risks, and closing risks that are out of date. A risk audit investigates and documents the effectiveness of risk responses as well as the effectiveness of the risk management process.
Explanation: <br>
A risk audit investigates and records the effectiveness of risk solutions, whereas a risk reassessment involves the discovery of new risks, a reevaluation of ongoing risks, and the closure of risks that are no longer relevant (PMBOK Guide page 351). Because risk reassessment is also a tool and approach used in the Control Risks process.
Question 4: A new telecommunications project that is entering its second phase has just been given to you by Global Telecom Inc. as its project manager. There seem to be a lot of risks associated with this endeavor, but no one has assessed them to determine the range of potential outcomes. Who would you recommend to lead the project?
- Plan Risk Responses
- Monitor risks
- Perform Quantitative Risk Analysis
- Plan Risk Management (Correct answer)
Correct answer: Plan Risk Management
Explanation: <br>
The process of outlining how to carry out risk management tasks for a project and will include all facets of risk identification in such circumstances is known as plan risk management.
Question 5: To limit a team's work in progress and potentially reduce risks while balancing demand against the team's delivery throughout adaptive projects, an on-demand strategy based on the idea of constraints and pull-based scheduling concepts from lean manufacturing is known as:
- Sprint development
- Kanban System (Correct answer)
- Retrospectives
- PDCA framework
Correct answer: Kanban System
The Kanban System is a lean manufacturing concept adapted for adaptive projects, focusing on visualizing work, limiting work in progress (WIP), and using a pull-based scheduling approach. This strategy helps balance demand with the team's delivery capacity, thereby reducing bottlenecks and risks. It directly addresses the need to limit WIP and improve flow in project management.
Question 6: Which of the following range estimates includes the LEAST risk, assuming that the range estimates' endpoints are +/- 3 sigma from the mean?
- O=27 days, P=33 days, Most likely=30 days (Correct answer)
- The mean of 28 days
- 22-30 days
- 30 days, plus or minus 5 days
Correct answer: O=27 days, P=33 days, Most likely=30 days
A smaller range between the optimistic (O) and pessimistic (P) estimates, when centered around the most likely value, indicates less uncertainty and therefore less risk. In option A, the range is 33 - 27 = 6 days, which is the narrowest range among the choices provided. This implies a higher degree of confidence and predictability in the estimate, signifying the least risk.
Question 7: The price of deciding on one project while rejecting another is referred to as:
- Fixed cost
- Net present value
- Sunk cost
- Opportunity cost (Correct answer)
Correct answer: Opportunity cost
Opportunity cost refers to the value of the next best alternative that was forgone when a particular decision was made. In project selection, if one project is chosen over another, the opportunity cost is the potential benefit or value that could have been realized from the rejected project. It highlights the trade-offs inherent in resource allocation.
