Free Project Risk Management Risk Monitoring and Control Questions and Answers — Questions and Answers
Question 1: A project manager is holding a recurring meeting with key stakeholders to discuss the current status of identified risks, the effectiveness of implemented responses, and to identify any new risks that have emerged. What is the primary purpose of this activity in the Monitor Risks process?
- To conduct a quantitative analysis of high-priority risks.
- To create the initial risk management plan.
- To ensure risk responses are being executed as planned and to evaluate their effectiveness. (Correct answer)
- To secure contingency reserves from the project sponsor.
Correct answer: To ensure risk responses are being executed as planned and to evaluate their effectiveness.
This scenario describes a risk review meeting. The core purpose of such meetings within the Monitor Risks process is to track identified risks, monitor residual risks, identify new risks, and evaluate the effectiveness of risk response plans.
Question 2: A project manager commissions an external team to formally examine and document the effectiveness of the project's risk response planning and the execution of the overall risk management process. What tool or technique is being used?
- Risk Reassessment
- Variance Analysis
- Risk Audit (Correct answer)
- Technical Performance Measurement
Correct answer: Risk Audit
A risk audit is a formal, often independent, examination of the entire risk management process. Its purpose is to assess the effectiveness of risk management planning and response execution, not just the status of individual risks.
Question 3: Which of the following is a primary objective of performing a risk reassessment during the Monitor Risks process?
- To develop the initial risk register from scratch.
- To identify new risks, re-evaluate existing ones, and close outdated risks. (Correct answer)
- To calculate the project's final expected monetary value (EMV).
- To assign risk owners for the first time.
Correct answer: To identify new risks, re-evaluate existing ones, and close outdated risks.
Risk reassessment is a key activity in risk monitoring that involves regularly reviewing the risk register to identify any new risks, reassessing the probability and impact of current risks, and closing risks that are no longer relevant to the project.
Question 4: A project team implemented a mitigation strategy for a high-probability technical risk. During monitoring, performance data shows the risk's impact is actually increasing. What should be the project manager's immediate next step?
- Accept the risk and inform stakeholders that the project will be delayed.
- Immediately transfer the risk to a third-party vendor.
- Request additional funding for the management reserve from the project sponsor.
- Analyze the situation to determine why the response was ineffective and develop an alternative response plan. (Correct answer)
Correct answer: Analyze the situation to determine why the response was ineffective and develop an alternative response plan.
A key part of the Monitor Risks process is evaluating the effectiveness of implemented risk responses. If a response is not working, the team must analyze the situation, understand the cause, and develop a new or modified response, which could include implementing a fallback plan.
Question 5: During project execution, the project manager compares the amount of contingency reserves remaining to the amount of risk remaining in the project to determine if the remaining reserve is adequate. This is an example of what technique?
- Reserve Analysis (Correct answer)
- Trend Analysis
- Earned Value Management
- Assumption and Constraint Analysis
Correct answer: Reserve Analysis
Reserve analysis is used throughout the project to monitor the status of contingency and management reserves. It involves comparing the amount of remaining reserves to the amount of remaining risk to determine if the reserves are still sufficient.
Question 6: While monitoring project progress, a project manager learns that a key supplier for a non-critical component has just declared bankruptcy. This was not an identified risk. What is the MOST appropriate first action for the project manager to take?
- Immediately issue a change request to update the project baseline.
- Use the management reserve to hire a new supplier immediately.
- Add the new risk to the risk register and perform an analysis. (Correct answer)
- Escalate the issue to senior management and wait for direction.
Correct answer: Add the new risk to the risk register and perform an analysis.
When a new risk is identified during the Monitor Risks process, the standard procedure is to first add it to the risk register. Following this, the risk should be analyzed (qualitatively and/or quantitatively) to understand its characteristics, which will inform the development of an appropriate response strategy.
