ICP Risk Management & Mitigation 3 — Questions and Answers
Question 1: Which of the following best describes 'risk transfer' in an agile context?
- Moving a risky story to a later sprint
- Shifting the financial or operational impact of a risk to a third party (Correct answer)
- Giving risk ownership to the Scrum Master
- Transferring team members to reduce knowledge risk
Correct answer: Shifting the financial or operational impact of a risk to a third party
Risk transfer shifts the consequence of a risk to another party, such as through insurance, warranties, or contractual agreements with vendors.
Question 2: Which agile technique helps manage the risk of insufficient testing coverage?
- Definition of Ready
- Definition of Done that includes automated testing criteria (Correct answer)
- Velocity tracking
- Burn-up charts
Correct answer: Definition of Done that includes automated testing criteria
Including automated testing criteria in the Definition of Done ensures no story is accepted without adequate test coverage, reducing quality risk.
Question 3: A risk that has occurred and is now impacting the project is called a(n):
- Residual risk
- Secondary risk
- Issue (Correct answer)
- Trigger
Correct answer: Issue
Once a risk event actually occurs and requires action, it becomes an issue that must be actively managed and resolved.
Question 4: In agile, who is primarily responsible for owning and managing product-level risks?
- Scrum Master
- Development Team
- Product Owner (Correct answer)
- Risk Officer
Correct answer: Product Owner
The Product Owner owns the product backlog and business outcomes, making them responsible for identifying and managing product-level risks.
Question 5: Which practice helps agile teams identify risks before a sprint begins?
- Sprint Retrospective
- Sprint Review
- Sprint Planning (Correct answer)
- Daily Scrum
Correct answer: Sprint Planning
During Sprint Planning the team examines selected backlog items and can identify technical or dependency risks before committing to the sprint goal.
Question 6: A 'risk appetite' in agile portfolio management refers to:
- The number of risks a team can log per sprint
- The level of risk an organization is willing to accept in pursuit of its goals (Correct answer)
- The budget allocated to risk mitigation
- The frequency of risk review meetings
Correct answer: The level of risk an organization is willing to accept in pursuit of its goals
Risk appetite is the amount and type of risk an organization is prepared to accept while pursuing objectives, guiding prioritization decisions.
Question 7: Secondary risks are best described as risks that:
- Are lower priority than primary risks
- Arise as a direct result of implementing a risk response (Correct answer)
- Have already been accepted by the team
- Only affect future sprints, not the current one
Correct answer: Arise as a direct result of implementing a risk response
Secondary risks are new risks created by the actions taken to respond to an original risk, and they must also be managed.
ICP Risk Management & Mitigation 3
Which of the following best describes 'risk transfer' in an agile context?