FREE PMBOK Managing Project Risks Questions and Answers Flashcards

A project manager identifies a risk that could delay the critical path by three weeks. The probability is low but the impact is very high. What is the BEST risk response strategy?

Answer: Develop a contingency plan with triggers

High-impact risks on the critical path warrant contingency plans with defined triggers, even when probability is low.

During the Perform Quantitative Risk Analysis process, which technique uses probability distributions to model schedule and cost outcomes?

Answer: Monte Carlo simulation

Monte Carlo simulation iterates thousands of scenarios using probability distributions to forecast likely project outcomes.

What is the PRIMARY purpose of a risk register in project management?

Answer: To serve as a repository for all identified risks and their response plans

The risk register is a comprehensive document that records all identified risks, their analysis results, and planned responses.

A project team discovers a new risk during execution that was not identified in planning. What should the project manager do FIRST?

Answer: Add it to the risk register and assess its impact

Newly identified risks should be logged in the risk register and assessed before determining the appropriate response.

Which risk response strategy involves shifting the negative impact of a risk to a third party?

Answer: Transfer

Risk transfer shifts the financial or operational impact to a third party, commonly through insurance or contracts.

What is a secondary risk in project risk management?

Answer: A risk that arises as a direct result of implementing a risk response

Secondary risks are new risks created specifically by the implementation of a response to an original risk.