Managing Project Risks Flashcards

Which statement BEST describes overall project risk versus individual project risk?

Answer: Individual project risk affects one objective; overall project risk represents the combined effect of all uncertainties on the project

Individual risks affect specific objectives, while overall project risk represents the aggregate exposure arising from all sources of uncertainty.

A risk trigger is BEST defined as:

Answer: An early warning indicator that a risk is about to occur

Risk triggers are warning signs or conditions that indicate a risk event is imminent, prompting activation of a contingency plan.

The Delphi Technique is used in risk identification primarily to:

Answer: Achieve consensus from experts anonymously and iteratively

The Delphi Technique gathers expert opinions through multiple anonymous rounds until convergence, reducing group bias.

Assuming a risk refers to which response strategy?

Answer: Accept

Accept acknowledges the risk and takes no proactive action, either actively (with a contingency plan) or passively (no response at all).

Which input is MOST important when planning risk responses?

Answer: Risk register and risk report

The risk register and risk report provide the analyzed, prioritized risk data needed to develop appropriate response strategies.

A project is over budget due to a risk event that was NOT in the risk register. The project manager requests funds from which source?

Answer: Management reserve

Management reserve is used for unknown risks (unknown unknowns) and requires management approval to access.

Which technique during risk identification maps cause-and-effect relationships to uncover root causes of risks?

Answer: Cause-and-Effect (Ishikawa) Diagram

The Ishikawa (fishbone) diagram traces potential causes back to their roots, helping the team identify where risks originate.