NPPE Risk Management and Liability 2

Question 1

In a qualitative risk assessment for an engineering project, risks are typically evaluated based on which two dimensions?

Accepted Answer

Probability of occurrence and severity of impact

Answer

Budget and schedule

Answer

Stakeholder concern and media coverage

Answer

Design complexity and construction difficulty

Question 2

An engineering firm's risk register identifies that a major subcontractor is likely to become insolvent during a project. Which risk response strategy best addresses this risk?

Accepted Answer

Require the subcontractor to post a performance bond and payment bond before commencing work

Answer

Ignore the risk since it is the subcontractor's problem

Answer

Accept the risk and establish a contingency fund

Answer

Transfer the risk by requiring the owner to deal directly with the subcontractor

Question 3

Which principle in risk management holds that it is better to prevent failures than to detect and correct them after they occur?

Accepted Answer

The prevention over detection principle (or 'prevention is better than cure')

Answer

The corrective action principle

Answer

The residual risk principle

Answer

The risk acceptance principle

Question 4

Under Canadian tort law, which type of liability does not require proof of negligence or fault?

Accepted Answer

Strict liability

Answer

Vicarious liability

Answer

Joint liability

Answer

Contributory negligence

Question 5

What is a 'risk register' in project risk management, and what information does it typically contain?

Accepted Answer

A living document recording identified project risks, their probability, impact, risk response plans, and assigned owners

Answer

A list of claims made against the engineering firm's insurance policy

Answer

A legal document listing excluded risks under the project contract

Answer

A regulatory filing required under provincial safety legislation

Question 6

Which statement best describes 'residual risk' in engineering risk management?

Accepted Answer

The risk remaining after risk response measures have been implemented

Answer

The risk remaining after initial risk identification

Answer

The risk that cannot be assigned to any project participant

Answer

The risk associated with design errors only