Program Risk and Issue Management Flashcards
6 cards from real Program Management Professional practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Program Risk and Issue Management flashcards as text
Monte Carlo simulation in program risk management is used to:
Answer: Model the range of possible outcomes based on probability distributions of identified risks
Monte Carlo simulation runs thousands of scenario iterations using probability distributions to produce a range of possible cost and schedule outcomes.
Which risk response strategy is most appropriate for a risk that cannot be avoided or transferred but whose impact can be lessened?
Answer: Mitigate
Mitigation reduces the probability or impact of a threat to an acceptable level when the risk cannot be avoided or transferred.
A contingency reserve in program budgeting is intended to:
Answer: Cover the financial impact of identified risks that may occur
Contingency reserves are specifically allocated to fund responses to identified risks (known unknowns) that are included in the Risk Register.
The difference between a contingency reserve and a management reserve in program budgeting is:
Answer: Contingency reserves cover identified risks; management reserves cover unidentified, unknown risks
Contingency reserves address known risks (identified and quantified), while management reserves address unknown risks not identified in advance.
An Issue Log in program management is used to:
Answer: Record, assign, track, and resolve current problems impacting the program
The Issue Log is a tracking tool for active problems, capturing each issue's description, owner, priority, and resolution status.
Which approach best represents a proactive risk culture in a program environment?
Answer: Continuously identifying, assessing, and responding to risks throughout the program lifecycle
A proactive risk culture involves continuous, systematic risk identification and response throughout the program, not just reactive problem-solving.
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