GCP Risk Assessment & Management 4 — Questions and Answers
Question 1: A residual risk is BEST described as:
- A newly identified risk after project closure
- The risk that remains after a risk response has been implemented (Correct answer)
- A risk that has been transferred to a vendor
- A risk with a probability rating of zero
Correct answer: The risk that remains after a risk response has been implemented
Residual risks are the remaining exposure after responses are applied and must continue to be monitored.
Question 2: During Monitor Risks, a project manager discovers that the risk management plan is no longer aligned with current project conditions. What should the PM do?
- Close the risk register and start fresh
- Update the risk management plan through integrated change control (Correct answer)
- Ignore the misalignment since risks were already assessed
- Escalate immediately to the PMO without analysis
Correct answer: Update the risk management plan through integrated change control
Changes to the risk management plan must go through integrated change control to maintain document consistency and stakeholder alignment.
Question 3: What is a 'secondary risk'?
- A risk rated low on the probability-impact matrix
- A new risk that arises as a direct result of implementing a risk response (Correct answer)
- A risk carried over from a previous project phase
- A risk with a negative EMV
Correct answer: A new risk that arises as a direct result of implementing a risk response
Secondary risks emerge because of the response actions taken to address a primary risk and must themselves be planned for.
Question 4: When using a probability and impact matrix, what determines whether a risk falls in the 'red' (high) zone?
- Its position in the risk register
- The combined score of its probability rating and impact rating exceeding a threshold (Correct answer)
- The number of stakeholders affected
- Whether it was identified early or late in the project
Correct answer: The combined score of its probability rating and impact rating exceeding a threshold
The matrix multiplies or combines probability and impact scores; risks above a predefined threshold are classified as high priority.
Question 5: Which risk identification technique involves systematically reviewing historical project documents, lessons learned, and organizational process assets?
- Brainstorming
- Documentation reviews (Correct answer)
- Interviews
- Checklist analysis
Correct answer: Documentation reviews
Documentation reviews examine existing plans, assumptions, and historical records to surface risks that prior projects encountered.
Question 6: A project sponsor asks why management reserves are NOT included in the project's cost baseline. What is the BEST explanation?
- Management reserves are only used after project closure
- Management reserves cover unknown-unknown risks and are controlled by management, not included in the baseline (Correct answer)
- Management reserves are part of the contingency reserve
- Management reserves are funded by vendors
Correct answer: Management reserves cover unknown-unknown risks and are controlled by management, not included in the baseline
Management reserves address unforeseen, unknown-unknown events and sit outside the cost baseline, accessible only with management approval.
Question 7: Which of the following BEST describes the risk appetite of an organization?
- The maximum monetary loss the organization will accept
- The degree of uncertainty an organization is willing to accept in pursuit of its objectives (Correct answer)
- The total contingency reserve budgeted for a project
- The number of high-priority risks listed in the risk register
Correct answer: The degree of uncertainty an organization is willing to accept in pursuit of its objectives
Risk appetite reflects an organization's general attitude toward uncertainty and how much risk it is willing to tolerate to achieve goals.
GCP Risk Assessment & Management 4
A residual risk is BEST described as: