Project Management Risk Management and Mitigation Questions and Answers

Question 1

A project manager identifies a risk that could significantly delay the project. The team decides to change the project plan to eliminate the risk entirely by adopting a different technical approach that does not carry this risk. This is an example of which risk response strategy?

Accepted Answer

Avoidance

Answer

Risk avoidance is a strategy that involves changing the project plan to eliminate a threat or protect the project from its impact. In this scenario, the team is not just reducing the risk's impact (mitigation) but removing it completely by changing their approach.

Question 2

During a project to implement a new CRM system, the project team decides to purchase an insurance policy to cover potential data loss during migration. This action is an example of which of the following risk response strategies?

Accepted Answer

Transference

Answer

Risk transference is the strategy of shifting the negative impact of a threat, along with ownership of the response, to a third party. Purchasing insurance is a classic example of transferring the financial impact of a risk to an insurance company.

Question 3

A project team implements a response to a known risk. As a direct result of this action, a new, unforeseen risk emerges. What is the correct term for this new risk?

Accepted Answer

Secondary Risk

Answer

A secondary risk is a new risk that arises as a direct result of implementing a risk response. It is different from a residual risk, which is the amount of risk remaining after a response has been implemented.

Question 4

A project manager is leading a risk analysis session. The team is using a probability and impact matrix to prioritize identified risks by assigning ratings such as 'High,' 'Medium,' and 'Low.' Which risk analysis process is being performed?

Accepted Answer

Perform Qualitative Risk Analysis

Answer

Perform Qualitative Risk Analysis is the process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact. This process uses subjective measures like a probability and impact matrix with descriptive ratings.

Question 5

Which of the following components is LEAST likely to be found in a comprehensive risk register?

Accepted Answer

A detailed project schedule

Answer

A risk register is a document that captures details of identified individual project risks. It typically includes a risk description, category, probability, impact, a risk score, the assigned owner, and the planned response. A detailed project schedule is a separate, more extensive project document.

Project Management Practice Test

Project Management Practice Test

Project Management Risk Management and Mitigation Questions and Answers