FREE PMBOK Managing Project Risks Questions and Answers Flashcards

A project manager is using an Expected Monetary Value (EMV) analysis for a decision. Risk A has a 30% probability and a -$100,000 impact. What is the EMV of Risk A?

Answer: -$30,000

EMV is calculated by multiplying probability (0.30) by impact (-$100,000), resulting in -$30,000.

Which document defines how risk management activities will be structured and performed throughout the project?

Answer: Risk management plan

The risk management plan outlines the methodology, roles, budgeting, timing, and categories for risk management activities.

During risk identification, the team uses a technique that examines the project from the perspective of strengths, weaknesses, opportunities, and threats. What is this technique called?

Answer: SWOT analysis

SWOT analysis broadens risk identification by examining internal strengths and weaknesses alongside external opportunities and threats.

A project manager decides to reduce the probability of a risk event by adding extra testing phases. Which risk response strategy is being applied?

Answer: Mitigation

Mitigation reduces the probability or impact of a risk to an acceptable threshold, such as adding testing to catch defects early.

What is the difference between a risk owner and a risk action owner?

Answer: The risk owner monitors the risk while the risk action owner executes the response

The risk owner is accountable for monitoring the risk, while the risk action owner is responsible for carrying out the specific response actions.

During the Monitor Risks process, the project manager reviews risks that did not occur and are no longer relevant. What should be done with these risks?

Answer: Close them in the risk register and release any contingency reserves

Risks that are no longer relevant should be formally closed and associated contingency reserves released back to the project.