Risk Response Planning 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 Response Planning flashcards as text
Which of the following is an example of the 'Enhance' strategy for opportunities?
Answer: Eliminating all obstacles to ensure an early delivery occurs
Enhance increases the probability or positive impact of an opportunity by removing barriers or strengthening causes.
A risk response requires the project manager to revise the project schedule. Which document must be updated as a result?
Answer: Project management plan
When risk responses affect schedule, cost, or scope, the relevant subsidiary plans within the project management plan must be updated.
A project manager is deciding between two risk responses. Response A costs $10,000 and reduces expected loss from $80,000 to $20,000. Response B costs $5,000 and reduces expected loss from $80,000 to $50,000. Which response provides better value?
Answer: Response A, because net savings ($60,000) exceed Response B net savings ($25,000)
Response A yields $60,000 net savings (80k-20k-10k) vs. Response B's $25,000 net savings (80k-50k-5k), making A the better value.
In risk response planning, a 'workaround' differs from a contingency plan because a workaround is:
Answer: An unplanned response developed for risks that were not anticipated
A workaround is an unplanned response to an unanticipated risk (unknown risk) or a risk whose contingency plan was not pre-defined.
Which of the following characteristics makes a risk response strategy MOST effective?
Answer: It is timely, realistic, agreed upon by all parties, and owned by a responsible person
Effective responses must be timely, realistic, cost-effective, agreed upon, and owned by a single accountable person.
A project team identifies a risk that has a high probability but very low impact. The MOST appropriate response is typically:
Answer: Accept the risk passively
Low-impact risks often do not justify the cost of active responses, making passive acceptance the most efficient approach.
When forming a joint venture to pursue a market opportunity, the project is using which opportunity response strategy?
Answer: Share
Sharing involves allocating ownership of an opportunity to a third party (e.g., joint venture, partnership) better able to capture it.