Monitor and Control Risks Flashcards

A project is 60% complete. The project manager notes that the cost performance index (CPI) is 0.9 and several identified risks have occurred, consuming 75% of the contingency reserves. What is the MOST appropriate immediate action for the project manager to take during the Monitor Risks process?

Answer: Analyze the remaining risks and the adequacy of the remaining reserves.

Reserve analysis is a key technique in the Monitor Risks process. It involves comparing the amount of contingency reserves remaining against the risk remaining in the project to determine if the reserves are still adequate. [7] Before escalating to request more funds, the project manager must first perform this analysis to understand the current risk exposure and justify any potential need for additional reserves.

A risk manager is facilitating a periodic review to examine and document the effectiveness of the risk response planning and the performance of the risk owners in executing their assigned responsibilities. What is this activity called?

Answer: Risk Audit

A risk audit is a formal process used to assess the effectiveness of the risk management process, including the planning of responses and the performance of risk owners. [15, 25] It evaluates how well the risk management plan is working, rather than just reassessing individual risks.

Which of the following activities is a key component of a risk reassessment performed during the Monitor Risks process?

Answer: Identifying new risks that have emerged since the project started.

Risk reassessment is an iterative process performed throughout the project. A critical part of this activity is to identify any new risks that may have arisen due to changing project conditions. [3] It also involves re-evaluating existing risks and closing out those that are no longer relevant.

During the execution of a project, an unexpected severe thunderstorm causes minor flooding on the site, a risk that was not identified in the risk register. The project team immediately rents industrial water pumps to clear the area. This immediate, unplanned response is BEST described as a:

Answer: Workaround

A workaround is an unplanned response to an unanticipated problem or risk event. [5, 18] Since the risk of a thunderstorm causing flooding was not previously identified, the action taken is a workaround. A contingency plan, by contrast, is a planned response to an identified risk. [4]

As a result of the Monitor Risks process, the project manager determines that a previously identified threat is now more likely to occur and its impact on the schedule is more severe than initially estimated. Which project document should be updated FIRST to reflect this new information?

Answer: The risk register

The risk register is a living document used to track and manage risks throughout the project lifecycle. [13] When monitoring activities reveal changes in a risk's probability, impact, or other attributes, the risk register is the primary document that must be updated to reflect the current assessment. [8]

A project manager is reviewing weekly performance reports. For the last three consecutive weeks, the Schedule Performance Index (SPI) has been declining from 0.95 to 0.88 to 0.81. This observation is an example of which tool or technique used in Monitor Risks?

Answer: Trend analysis

Trend analysis is a data analysis technique that uses historical results to forecast future outcomes. [11] By examining project performance data over time, such as the declining SPI, a project manager can identify patterns or trends that may indicate increasing risk and predict future performance if no corrective actions are taken. [14, 6]