Project Management Risk Management and Mitigation

Question 1

A project manager discovers a risk that was not captured in the initial risk register. What is the FIRST action to take?

Accepted Answer

Document the risk in the risk register and assess it

Answer

Newly identified risks should be documented in the risk register and then assessed for probability and impact before any response is planned.

Question 2

Which risk response strategy is being used when a project team decides to outsource a high-risk component to a specialized vendor?

Accepted Answer

Transfer

Answer

Transferring risk shifts the financial impact or responsibility of a risk to a third party, such as a vendor or insurer.

Question 3

What does the term 'risk appetite' refer to in project management?

Accepted Answer

The amount of risk an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite is the degree of uncertainty an organization or stakeholder is willing to accept in anticipation of a reward.

Question 4

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?

Accepted Answer

Update the risk register to reflect the new probability and impact scores

Answer

The risk register is a living document and should be updated whenever risk attributes change due to mitigation actions or new information.

Question 5

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?

Accepted Answer

Accept the risk passively and plan a contingency response

Answer

When mitigation costs outweigh the EMV of the risk, passive acceptance with a contingency plan is the most cost-effective response.

Project Management Practice Test

Project Management Practice Test

Project Management Risk Management and Mitigation