PMBOK Managing Project Risks 5 — Questions and Answers
Question 1: Which statement BEST describes overall project risk versus individual project risk?
- Overall project risk is the sum of all individual risk scores
- Individual project risk affects one objective; overall project risk represents the combined effect of all uncertainties on the project (Correct answer)
- Overall project risk only includes threats, not opportunities
- Individual risks and overall project risk are the same concept
Correct 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.
Question 2: A risk trigger is BEST defined as:
- The financial impact of a risk event
- An early warning indicator that a risk is about to occur (Correct answer)
- The probability assigned to a risk in qualitative analysis
- A tool used to identify risks during planning
Correct 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.
Question 3: The Delphi Technique is used in risk identification primarily to:
- Calculate numerical probability distributions for risks
- Achieve consensus from experts anonymously and iteratively (Correct answer)
- Rank risks using a probability and impact matrix
- Create a fishbone diagram for root cause analysis
Correct answer: Achieve consensus from experts anonymously and iteratively
The Delphi Technique gathers expert opinions through multiple anonymous rounds until convergence, reducing group bias.
Question 4: Assuming a risk refers to which response strategy?
- Avoid
- Transfer
- Mitigate
- Accept (Correct answer)
Correct answer: Accept
Accept acknowledges the risk and takes no proactive action, either actively (with a contingency plan) or passively (no response at all).
Question 5: Which input is MOST important when planning risk responses?
- Project charter
- Risk register and risk report (Correct answer)
- Stakeholder register
- Project schedule baseline
Correct answer: Risk register and risk report
The risk register and risk report provide the analyzed, prioritized risk data needed to develop appropriate response strategies.
Question 6: 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?
- Contingency reserve
- Management reserve (Correct answer)
- Cost baseline
- Project profit margin
Correct answer: Management reserve
Management reserve is used for unknown risks (unknown unknowns) and requires management approval to access.
Question 7: Which technique during risk identification maps cause-and-effect relationships to uncover root causes of risks?
- SWOT Analysis
- Prompt Lists
- Cause-and-Effect (Ishikawa) Diagram (Correct answer)
- Risk Breakdown Structure
Correct answer: Cause-and-Effect (Ishikawa) Diagram
The Ishikawa (fishbone) diagram traces potential causes back to their roots, helping the team identify where risks originate.
PMBOK Managing Project Risks 5
Which statement BEST describes overall project risk versus individual project risk?