Program Management Professional Program Risk and Issue Management 2 — Questions and Answers
Question 1: How does an 'issue' differ from a 'risk' in program management?
- Issues are always more critical than risks
- An issue is a realized problem requiring immediate action, while a risk is a potential future event (Correct answer)
- Risks are managed by project managers while issues are managed only by the program manager
- There is no practical difference between the two terms
Correct answer: An issue is a realized problem requiring immediate action, while a risk is a potential future event
A risk is a potential uncertain event with positive or negative impact, while an issue is a current problem that has already occurred and requires resolution.
Question 2: Which tool is used to prioritize risks based on their probability and impact?
- Stakeholder Engagement Matrix
- Probability and Impact Matrix (Correct answer)
- RACI Chart
- Work Breakdown Structure
Correct answer: Probability and Impact Matrix
The Probability and Impact Matrix plots risks across two dimensions to prioritize them by their overall risk exposure score.
Question 3: When a program risk response is implemented, what should the program manager monitor for?
- Only the original risk, ignoring any new developments
- Residual risks (remaining after response) and secondary risks (created by the response) (Correct answer)
- Financial costs of the response only
- The performance of the risk owner exclusively
Correct answer: Residual risks (remaining after response) and secondary risks (created by the response)
After implementing a risk response, the program manager must track residual risks that remain and watch for secondary risks introduced by the response itself.
Question 4: A 'workaround' in program risk management is best described as:
- A planned risk response developed before the risk occurs
- An unplanned response developed after a risk has materialized and no response plan exists (Correct answer)
- A cost reduction strategy for risk management
- A risk escalation procedure
Correct answer: An unplanned response developed after a risk has materialized and no response plan exists
A workaround is an ad hoc response to an unplanned risk event, developed on-the-fly when no prior contingency plan was established.
Question 5: The concept of 'risk interdependency' at the program level refers to:
- Having a single owner responsible for all risks
- The way risks in one component project can trigger or amplify risks in other components (Correct answer)
- Linking risks to individual financial line items
- The dependency of risks on the program schedule
Correct answer: The way risks in one component project can trigger or amplify risks in other components
Risk interdependencies mean a risk occurring in one component may cascade into or amplify risks in other components, requiring program-level coordination.
Question 6: What is the primary purpose of a risk review meeting in a program?
- To assign blame for risks that materialized
- To reassess risk probability, impact, and response effectiveness as program conditions evolve (Correct answer)
- To document new risks discovered since program initiation only
- To present risks to the sponsor for approval
Correct answer: To reassess risk probability, impact, and response effectiveness as program conditions evolve
Risk review meetings allow the program team to update risk assessments, confirm response effectiveness, and identify newly emerging risks as the program progresses.
Program Management Professional Program Risk and Issue Management 2
How does an 'issue' differ from a 'risk' in program management?