PMBOK Managing Project Risks 3

Question 1

What does a risk threshold represent in project risk management?

Accepted Answer

The level of risk exposure acceptable to the organization

Answer

Risk thresholds define the level of risk exposure that the organization or stakeholders are willing to accept before action is required.

Question 2

Which qualitative risk analysis tool ranks risks based on their probability and impact scores?

Accepted Answer

Probability and Impact Matrix

Answer

The Probability and Impact Matrix maps each risk's likelihood against its potential effect to assign a priority rating.

Question 3

A project manager adds 15% to the project budget to cover unforeseen risks that have not been specifically identified. This is an example of:

Accepted Answer

Management reserve

Answer

Management reserve covers unknown-unknown risks and is held outside the cost baseline, controlled by management.

Question 4

In quantitative risk analysis, which technique uses repeated random sampling to model the range of possible project outcomes?

Accepted Answer

Monte Carlo Simulation

Answer

Monte Carlo Simulation runs thousands of iterations with random variable inputs to produce a probability distribution of outcomes.

Question 5

A secondary risk is BEST defined as:

Accepted Answer

A risk arising directly from implementation of a risk response

Answer

Secondary risks are new risks introduced as a direct result of implementing a risk response action.

PMBOK - Project Management Body of Knowledge Practice Test