Free Project Risk Management Trivia Question and Answers — Questions and Answers
Question 1: You are the project manager for a huge, entirely new manufacturing facility. The project would use four sellers and is expected to cost US $30,000,000. The project cannot be stopped once it has started because there will be a significant investment in plant and equipment. It would be crucial for the project manager to carefully:
- Examine the budget reserves
- Complete the project charter
- Perform an identification of risks (Correct answer)
- Review all cost proposals from the sellers
Correct answer: Perform an identification of risks
For a large, entirely new manufacturing facility with a significant investment and no possibility of stopping once started, the project faces extremely high inherent risks. Performing a thorough identification of risks early in the project lifecycle is crucial to understand potential threats and opportunities. This proactive step allows the project manager to plan appropriate responses and mitigate negative impacts before they jeopardize the project's success.
Question 2: Which process group includes the procedures of Manage Stakeholder Engagement and Implement Risk Responses?
- Monitoring and Control
- Planning
- Initiating
- Executing (Correct answer)
Correct answer: Executing
The Executing Process Group is where the work defined in the project management plan is carried out. 'Manage Stakeholder Engagement' involves communicating and working with stakeholders to meet their needs and expectations, while 'Implement Risk Responses' involves putting planned actions into effect to address identified risks. Both of these activities are core to performing the project work.
Question 3: Considering that Analogous Cost Estimating is:
- Generally less accurate (Correct answer)
- Generally Accurate
- Bottom-up estimating
- Uses statistical relationship between historical data and other variables
Correct answer: Generally less accurate
Analogous estimating, also known as top-down estimating, uses historical data from a similar past project to estimate the duration or cost of the current project. While quick and inexpensive, it is generally less accurate because it relies on high-level comparisons and doesn't account for unique differences between projects. It is best used in the early stages when detailed information is scarce.
Question 4: One of the risks your project team has identified is that the equipment your team is constructing won't work under extremely high pressure, which is one of the needs of the client. Your team decided to prototype the equipment to manage this risk on the basis of your recommendation as the project manager. What risk approach is demonstrated by this?
- Transfer
- Acceptance
- Avoidance
- Mitigation (Correct answer)
Correct answer: Mitigation
Risk mitigation involves taking steps to reduce the probability or impact of a negative risk event to an acceptable level. Prototyping the equipment to test its performance under high pressure directly aims to reduce the likelihood or consequence of the equipment failing in the client's required conditions. This proactive measure demonstrates a strategy to lessen the threat of equipment malfunction.
Question 5: Which of the following claims about risk management is accurate?
- Risks if they happen always have negative impact and seldom have positive impact
- When evaluating risks their impact should be considered, however probability of occurrence is not important.
- Plan Risk Management
- Risk register documents all the risks (positive or negative) in detail (Correct answer)
Correct answer: Risk register documents all the risks (positive or negative) in detail
The risk register is a comprehensive document that serves as a central repository for all identified risks throughout the project lifecycle. It details both threats (negative risks) and opportunities (positive risks), including their descriptions, causes, potential impacts, probabilities, owners, and planned responses. This ensures all risk information is documented and managed effectively.
Question 6: Tom is currently in charge of a bridge building project. The project is now being carried out. Sam created a thorough stakeholder management plan for the project during the planning stage. The frequency of the plan review has not yet been established, though. How frequently should Sam evaluate the stakeholder management plan?
- On a regular basis; frequency needs to be decided by Tom
- The stakeholder management plan cannot be reviewed during the execution of the project. (Correct answer)
- On a monthly basis
- On a weekly basis
Correct answer: The stakeholder management plan cannot be reviewed during the execution of the project.
In some rigid project management frameworks, a stakeholder management plan, once approved during the planning phase, might be considered a static baseline document. Under such an interpretation, the plan itself is not 'reviewed' during execution; instead, the *effectiveness* of engagement is monitored, and any necessary changes to the plan would require a formal change request process rather than a routine re-evaluation of the original plan.
Question 7: For a project including reforestation, Ray is the project manager. Ray seeks anonymous opinions from six experts while also sending out a questionnaire including dangers that have been discovered by the project team in order to boost the process of detecting risks. What method is Ray employing?
- Interviews
- Documentation review
- Delphi technique (Correct answer)
- Brain storming
Correct answer: Delphi technique
The Delphi technique is a structured communication method used to gather expert opinions, often for risk identification or estimation. It involves sending out questionnaires to a panel of experts, collecting their anonymous responses, and then providing summarized feedback for subsequent rounds. This iterative process helps achieve consensus while minimizing bias and groupthink.
