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
Which of the following is a key difference between a 'risk' and an 'issue' in project management?
Answer: An issue has already occurred; a risk is an uncertain future event
A risk is an uncertain future event that may affect project objectives, while an issue is a problem or situation that has already occurred.
What type of risk analysis uses techniques such as decision tree analysis and sensitivity analysis?
Answer: Quantitative risk analysis
Quantitative risk analysis uses numerical techniques like decision trees and sensitivity analysis to estimate the effect of risks on project objectives.
A project manager learns that a competitor plans to release a similar product two months before her project's launch. From a risk management perspective, this is BEST classified as:
Answer: An external risk
External risks originate outside the project and organization, such as market competition, regulatory changes, or economic shifts.
When using the 'exploit' strategy in risk response planning, the project manager is:
Answer: Taking action to ensure a positive risk opportunity definitely occurs
Exploit is a response strategy for opportunities that seeks to eliminate uncertainty by making sure the positive event actually happens.
A project manager sets aside $50,000 to handle identified risks and $20,000 for unknown risks. What are these reserves called, respectively?
Answer: Contingency reserve and management reserve
Contingency reserves address identified known-unknown risks, while management reserves are for unknown-unknown risks that were not anticipated.
Which risk identification technique involves gathering a group of subject matter experts to brainstorm risks without judgment or criticism?
Answer: Brainstorming
Brainstorming brings together SMEs to freely generate risk ideas in an open, non-judgmental environment to maximize the number of risks identified.
A tornado watch is issued for the area where a project's outdoor event is being held. The project team has no contingency plan for this scenario. What type of planning failure does this represent?
Answer: Failure to identify and plan for a foreseeable risk
A tornado watch in a weather-prone region is a foreseeable risk that should have been identified and addressed with a contingency plan during risk planning.