Project Management & Planning Flashcards

Which risk response strategy shifts the impact of a threat to a third party, such as through insurance or a fixed-price subcontract?

Answer: Transfer

Transferring moves the financial or management responsibility for a risk to another party.

A consultant sets aside a contingency reserve for identified risks. What type of risks does this reserve cover?

Answer: Known-unknowns

Contingency reserves cover identified (known-unknown) risks, while management reserves cover unforeseen ones.

In a probability and impact matrix, which risk should generally receive the highest priority?

Answer: High probability, high impact

Risks scoring high on both probability and impact carry the greatest exposure and need priority response.

What is the main purpose of a stakeholder power/interest grid?

Answer: To classify stakeholders and decide engagement strategies

The grid groups stakeholders by power and interest so the consultant can manage closely, keep satisfied, keep informed, or monitor.

How many communication channels exist on a consulting project with 8 stakeholders?

Answer: 28

Channels = n(n-1)/2 = 8 x 7 / 2 = 28.

Which contract type places the most cost risk on the consultant (seller)?

Answer: Firm-fixed-price

Under a firm-fixed-price contract the seller absorbs any cost overruns beyond the agreed price.

A risk that arises as a direct result of implementing a risk response is called what?

Answer: Secondary risk

Secondary risks are new risks created by carrying out a response to another risk.