Project Management Risk Management and Mitigation 3

Question 1

A project sponsor asks for a single number that summarizes the overall risk exposure of the project. Which technique BEST provides this?

Accepted Answer

Expected Monetary Value (EMV) analysis

Answer

EMV multiplies the probability of each risk by its monetary impact and sums them up to produce an overall risk exposure figure.

Question 2

Which of the following is an example of an 'opportunity' in the context of project risk management?

Accepted Answer

A vendor delivering materials two weeks early, freeing up schedule buffer

Answer

In risk management, opportunities are uncertain events with positive impacts on project objectives, such as early delivery that adds schedule float.

Question 3

What is the purpose of a 'risk register' in project management?

Accepted Answer

To document identified risks, their characteristics, and planned responses

Answer

The risk register is a central document that captures all identified risks, their probability, impact, owners, and planned response strategies.

Question 4

During Monte Carlo simulation for schedule risk analysis, what is the PRIMARY output?

Accepted Answer

A probability distribution of possible project completion dates

Answer

Monte Carlo simulation runs thousands of schedule scenarios to produce a probability distribution showing the likelihood of finishing by various dates.

Question 5

A project is facing a risk that the project team cannot control or mitigate. What is the MOST appropriate response strategy?

Accepted Answer

Escalate

Answer

Escalation is used when a risk is outside the project manager's authority or control and must be handled at a higher organizational level.

Project Management Practice Test

Project Management Practice Test

Project Management Risk Management and Mitigation 3