Project Management & Execution Flashcards

Which risk response strategy is used when a collection department buys credit insurance to cover potential customer insolvency losses?

Answer: Transfer

Insurance shifts the financial impact of a risk to a third party, which is risk transfer.

A project's earned value (EV) is $40,000 and planned value (PV) is $50,000. What does the schedule performance index (SPI) indicate?

Answer: The project is behind schedule

SPI = EV/PV = 0.8, and an SPI below 1.0 means less work was completed than planned.

Earned value is $60,000 and actual cost is $75,000 on a dialer upgrade project. What is the cost performance index (CPI)?

Answer: 0.80

CPI = EV/AC = 60,000/75,000 = 0.80, meaning the project is over budget.

Which document should a project manager use to track identified risks, their probability, impact, owners, and responses?

Answer: Risk register

The risk register is the central record of identified risks and their planned responses.

A key collector leaves mid-project, and the task they owned is now late. In project terms, this has become a(n):

Answer: Issue

Once a risk event has occurred and is affecting the project, it is managed as an issue.

To shorten a portfolio-cleanup project schedule, the manager adds temporary staff to critical-path tasks at extra cost. This technique is called:

Answer: Crashing

Crashing adds resources to critical tasks to cut duration, usually at higher cost.

Running vendor testing in parallel with staff training, which were originally planned in sequence, is an example of:

Answer: Fast-tracking

Fast-tracking overlaps activities that were planned in sequence, which raises rework risk.