GCP Risk Assessment & Management 3 — Questions and Answers
Question 1: 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?
- Delphi technique
- Nominal group technique (Correct answer)
- Brainstorming
- Root cause analysis
Correct answer: Nominal group technique
The nominal group technique involves silent individual generation followed by group discussion and prioritization to surface diverse risk inputs.
Question 2: A risk has a 30% probability of occurring and would cost $50,000 if it does. What is its Expected Monetary Value (EMV)?
- $50,000
- $35,000
- $15,000 (Correct answer)
- $20,000
Correct answer: $15,000
EMV = Probability × Impact = 0.30 × $50,000 = $15,000.
Question 3: Which document records the results of risk analysis and risk response planning and is updated throughout the project?
- Project charter
- Risk register (Correct answer)
- Stakeholder register
- Issue log
Correct answer: Risk register
The risk register is the central repository for all risk identification, analysis, response, and monitoring information.
Question 4: A project manager notices that several small, low-probability risks share a common root cause. What is the BEST action?
- Accept all of them since they are low probability
- Address the root cause to eliminate or reduce multiple risks simultaneously (Correct answer)
- Transfer each risk individually to vendors
- Escalate each risk separately to the sponsor
Correct 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.
Question 5: What does a risk breakdown structure (RBS) help a project team accomplish?
- Assign budget to risk responses
- Categorize and organize risks by source or type (Correct answer)
- Calculate the probability of each risk
- Identify stakeholders responsible for risks
Correct answer: Categorize and organize risks by source or type
The RBS organizes risks into hierarchical categories, helping ensure comprehensive coverage of risk sources.
Question 6: 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?
- SWOT analysis
- Sensitivity analysis (Correct answer)
- Qualitative risk matrix
- Delphi technique
Correct answer: Sensitivity analysis
Sensitivity analysis examines how changes in individual project variables affect outcomes, often visualized as a tornado diagram.
Question 7: Which risk response involves shifting the negative impact of a risk to a third party, such as purchasing insurance?
- Avoid
- Mitigate
- Accept
- Transfer (Correct answer)
Correct answer: Transfer
Transfer shifts the financial or operational burden of a risk to a third party through insurance, contracts, or warranties.
GCP Risk Assessment & Management 3
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?