Project Management Risk Response Planning

Question 1

A project manager decides to purchase insurance to cover potential financial losses from a risk event. Which risk response strategy is being used?

Accepted Answer

Transfer

Answer

Purchasing insurance transfers the financial consequence of a risk to a third party (the insurer).

Question 2

Which document serves as the primary input for developing risk responses in the Plan Risk Responses process?

Accepted Answer

Risk register

Answer

The risk register contains identified risks, their probability/impact ratings, and priority rankings that drive response planning.

Question 3

A project team chooses to use a more proven technology instead of a cutting-edge one to eliminate the chance of a technical failure risk. This is an example of:

Accepted Answer

Avoid

Answer

Changing the approach to eliminate the risk entirely is avoidance, the most aggressive threat response strategy.

Question 4

When a risk response is implemented, it may introduce new risks. These newly created risks are called:

Accepted Answer

Secondary risks

Answer

Secondary risks are risks that arise as a direct result of implementing a risk response.

Question 5

A project manager accepts a risk and sets aside $50,000 in the contingency reserve. This is an example of:

Accepted Answer

Active acceptance

Answer

Active acceptance involves establishing a contingency reserve (time, money, or resources) to deal with the risk if it occurs.

Project Management Practice Test

Project Management Practice Test

Project Management Risk Response Planning