PCC Risk Assessment & Mitigation 3 — Questions and Answers
Question 1: Which risk analysis technique gathers expert opinions anonymously in iterative rounds to reach consensus?
- Brainstorming
- Delphi Technique (Correct answer)
- Interviewing
- Root Cause Analysis
Correct answer: Delphi Technique
The Delphi Technique uses anonymous questionnaires sent to experts in multiple rounds, reducing bias and groupthink.
Question 2: A risk response that involves changing the project plan to eliminate a threat entirely is called:
- Mitigate
- Accept
- Avoid (Correct answer)
- Exploit
Correct answer: Avoid
Risk avoidance involves altering project objectives, scope, schedule, or approach to eliminate the threat completely.
Question 3: What does the 'S-curve' on a cumulative risk exposure chart typically indicate when it flattens at the top?
- Project risks are increasing rapidly
- Most known risks have been addressed and residual risk is stable (Correct answer)
- The project is over budget
- New risks are being identified daily
Correct answer: Most known risks have been addressed and residual risk is stable
A flattening S-curve suggests that risk identification and mitigation efforts have captured the majority of project risk, leaving only stable residual exposure.
Question 4: Which schedule risk metric measures the ratio of earned value to planned value and signals schedule performance?
- Cost Performance Index (CPI)
- Schedule Performance Index (SPI) (Correct answer)
- To-Complete Performance Index (TCPI)
- Budget at Completion (BAC)
Correct answer: Schedule Performance Index (SPI)
SPI = EV / PV; a value below 1.0 indicates the project is behind schedule and may signal schedule risk.
Question 5: In risk management, what is a 'trigger' (also called a risk symptom)?
- The root cause of a risk event
- An early warning sign that a risk is about to occur (Correct answer)
- The maximum possible loss from a risk
- A contractual clause activating insurance
Correct answer: An early warning sign that a risk is about to occur
A trigger is an observable condition or event that signals that a risk is imminent or has occurred, prompting a response.
Question 6: When applying the risk response strategy of 'enhance,' the project team is trying to:
- Reduce the probability of a negative risk
- Increase the probability or impact of a positive risk (Correct answer)
- Transfer a positive risk to a third party
- Accept both threats and opportunities passively
Correct answer: Increase the probability or impact of a positive risk
Enhancement is an opportunity response strategy that seeks to increase the likelihood or benefit of a positive risk event.
Question 7: A contingency reserve in a project budget is best described as:
- Funds set aside for known unknowns identified through risk analysis (Correct answer)
- Executive discretionary funds for unplanned scope changes
- A budget buffer for vendor price escalation only
- Reserve held for post-project warranty work
Correct answer: Funds set aside for known unknowns identified through risk analysis
Contingency reserves address known risks (known unknowns) identified in risk analysis, while management reserves cover unknown unknowns.
PCC Risk Assessment & Mitigation 3
Which risk analysis technique gathers expert opinions anonymously in iterative rounds to reach consensus?