HP Risk Management & Mitigation 2

Question 1

In a qualitative risk assessment matrix, which combination correctly describes a HIGH-priority risk?

Accepted Answer

High likelihood, high impact

Answer

A high-priority risk has both high likelihood of occurrence and high potential impact on project objectives.

Question 2

Which risk response strategy involves shifting the negative consequences of a risk to a third party?

Accepted Answer

Transfer

Answer

Risk transfer moves the financial or operational burden of a risk to another party, such as through insurance or outsourcing.

Question 3

A project team decides to add buffer time to a schedule to handle potential delays. This is an example of which risk response?

Accepted Answer

Risk acceptance (active)

Answer

Adding contingency reserves (time or budget) is active acceptance — acknowledging the risk and preparing a buffer rather than eliminating it.

Question 4

What is a 'residual risk' in risk management?

Accepted Answer

The risk remaining after mitigation strategies are applied

Answer

Residual risk is the level of risk that remains after controls and mitigation measures have been implemented.

Question 5

Which of the following best describes a 'risk trigger'?

Accepted Answer

An indicator that a risk is about to occur

Answer

A risk trigger (or warning sign) is an event or condition that signals a risk is imminent or has occurred.

(HP) Honors Program Practice Test