Project Management Risk Management and Mitigation 4

Question 1

Which of the following is a key difference between a 'risk' and an 'issue' in project management?

Accepted Answer

An issue has already occurred; a risk is an uncertain future event

Answer

A risk is an uncertain future event that may affect project objectives, while an issue is a problem or situation that has already occurred.

Question 2

What type of risk analysis uses techniques such as decision tree analysis and sensitivity analysis?

Accepted Answer

Quantitative risk analysis

Answer

Quantitative risk analysis uses numerical techniques like decision trees and sensitivity analysis to estimate the effect of risks on project objectives.

Question 3

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:

Accepted Answer

An external risk

Answer

External risks originate outside the project and organization, such as market competition, regulatory changes, or economic shifts.

Question 4

When using the 'exploit' strategy in risk response planning, the project manager is:

Accepted Answer

Taking action to ensure a positive risk opportunity definitely occurs

Answer

Exploit is a response strategy for opportunities that seeks to eliminate uncertainty by making sure the positive event actually happens.

Question 5

A project manager sets aside $50,000 to handle identified risks and $20,000 for unknown risks. What are these reserves called, respectively?

Accepted Answer

Contingency reserve and management reserve

Answer

Contingency reserves address identified known-unknown risks, while management reserves are for unknown-unknown risks that were not anticipated.

Project Management Practice Test

Project Management Practice Test

Project Management Risk Management and Mitigation 4