Risk Management and Mitigation Flashcards
7 cards from real Project Management practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management and Mitigation flashcards as text
A project manager discovers a risk that was not captured in the initial risk register. What is the FIRST action to take?
Answer: Document the risk in the risk register and assess it
Newly identified risks should be documented in the risk register and then assessed for probability and impact before any response is planned.
Which risk response strategy is being used when a project team decides to outsource a high-risk component to a specialized vendor?
Answer: Transfer
Transferring risk shifts the financial impact or responsibility of a risk to a third party, such as a vendor or insurer.
What does the term 'risk appetite' refer to in project management?
Answer: The amount of risk an organization is willing to accept in pursuit of its objectives
Risk appetite is the degree of uncertainty an organization or stakeholder is willing to accept in anticipation of a reward.
During a risk review, a previously identified risk has its probability reduced from 'High' to 'Low' after a mitigation action was completed. What should the PM do?
Answer: Update the risk register to reflect the new probability and impact scores
The risk register is a living document and should be updated whenever risk attributes change due to mitigation actions or new information.
A project manager notices that the cost of mitigating a risk exceeds the expected monetary value (EMV) of the risk itself. What is the BEST course of action?
Answer: Accept the risk passively and plan a contingency response
When mitigation costs outweigh the EMV of the risk, passive acceptance with a contingency plan is the most cost-effective response.
Which of the following BEST describes a secondary risk?
Answer: A risk that arises as a direct result of implementing a risk response
Secondary risks are new risks that emerge as a consequence of a planned risk response action.
In qualitative risk analysis, a 'probability and impact matrix' is used to:
Answer: Prioritize risks for further analysis or risk response planning
The probability and impact matrix helps teams prioritize risks by rating their likelihood and potential effect, guiding where to focus risk management efforts.