Risk Assessment & Management Flashcards

During risk identification, a facilitator asks team members to write risks on cards without discussion, then groups them by theme. Which technique is being used?

Answer: Nominal group technique

The nominal group technique involves silent individual generation followed by group discussion and prioritization to surface diverse risk inputs.

A risk has a 30% probability of occurring and would cost $50,000 if it does. What is its Expected Monetary Value (EMV)?

Answer: $15,000

EMV = Probability × Impact = 0.30 × $50,000 = $15,000.

Which document records the results of risk analysis and risk response planning and is updated throughout the project?

Answer: Risk register

The risk register is the central repository for all risk identification, analysis, response, and monitoring information.

A project manager notices that several small, low-probability risks share a common root cause. What is the BEST action?

Answer: Address the root cause to eliminate or reduce multiple risks simultaneously

Addressing a shared root cause is more efficient and can neutralize multiple related risks at once.

What does a risk breakdown structure (RBS) help a project team accomplish?

Answer: Categorize and organize risks by source or type

The RBS organizes risks into hierarchical categories, helping ensure comprehensive coverage of risk sources.

A project manager wants to understand how changes in one variable (e.g., task duration) affect overall project cost. Which quantitative technique is MOST useful?

Answer: Sensitivity analysis

Sensitivity analysis examines how changes in individual project variables affect outcomes, often visualized as a tornado diagram.

Which risk response involves shifting the negative impact of a risk to a third party, such as purchasing insurance?

Answer: Transfer

Transfer shifts the financial or operational burden of a risk to a third party through insurance, contracts, or warranties.