Program Management Professional Program Risk and Issue Management 3

Question 1

Monte Carlo simulation in program risk management is used to:

Accepted Answer

Model the range of possible outcomes based on probability distributions of identified risks

Answer

Generate random project schedules

Answer

Calculate the exact date for risk occurrence

Answer

Replace qualitative risk analysis

Question 2

Which risk response strategy is most appropriate for a risk that cannot be avoided or transferred but whose impact can be lessened?

Accepted Answer

Mitigate

Answer

Accept

Answer

Enhance

Answer

Transfer

Question 3

A contingency reserve in program budgeting is intended to:

Accepted Answer

Cover the financial impact of identified risks that may occur

Answer

Fund unauthorized scope additions

Answer

Provide a general buffer for any unknown expenses

Answer

Replace the management reserve

Question 4

The difference between a contingency reserve and a management reserve in program budgeting is:

Accepted Answer

Contingency reserves cover identified risks; management reserves cover unidentified, unknown risks

Answer

There is no difference; both serve the same purpose

Answer

Management reserves are larger than contingency reserves

Answer

Contingency reserves require sponsor approval while management reserves do not

Question 5

An Issue Log in program management is used to:

Accepted Answer

Record, assign, track, and resolve current problems impacting the program

Answer

Track potential future risks only

Answer

Replace the Risk Register when risks materialize

Answer

Document stakeholder complaints exclusively

Question 6

Which approach best represents a proactive risk culture in a program environment?

Accepted Answer

Continuously identifying, assessing, and responding to risks throughout the program lifecycle

Answer

Waiting for issues to occur before responding

Answer

Limiting risk discussions to annual reviews

Answer

Addressing only the highest-priority risks and ignoring lower-priority ones