Project Management Risk Response Planning 4 — Questions and Answers
Question 1: Which of the following is an example of the 'Enhance' strategy for opportunities?
- Eliminating all obstacles to ensure an early delivery occurs (Correct answer)
- Assigning the opportunity to a third party better positioned to capture it
- Doing nothing and letting the opportunity arise naturally
- Sharing resources with another project to reduce costs
Correct 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.
Question 2: A risk response requires the project manager to revise the project schedule. Which document must be updated as a result?
- Risk register only
- Project management plan (Correct answer)
- Lessons learned register
- Stakeholder engagement plan
Correct answer: Project management plan
When risk responses affect schedule, cost, or scope, the relevant subsidiary plans within the project management plan must be updated.
Question 3: 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?
- Response A, because it reduces more risk
- Response B, because it costs less
- Response A, because net savings ($60,000) exceed Response B net savings ($25,000) (Correct answer)
- Response B, because cost-benefit ratio is higher
Correct 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.
Question 4: In risk response planning, a 'workaround' differs from a contingency plan because a workaround is:
- Planned in advance for known risks
- An unplanned response developed for risks that were not anticipated (Correct answer)
- A reserve set aside in the project budget
- A risk that has been escalated to the sponsor
Correct 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.
Question 5: Which of the following characteristics makes a risk response strategy MOST effective?
- It is the least expensive option available
- It is timely, realistic, agreed upon by all parties, and owned by a responsible person (Correct answer)
- It eliminates all residual and secondary risks
- It is approved by the project sponsor before implementation
Correct 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.
Question 6: A project team identifies a risk that has a high probability but very low impact. The MOST appropriate response is typically:
- Avoid the risk immediately
- Accept the risk passively (Correct answer)
- Transfer the risk to a vendor
- Escalate the risk to senior management
Correct answer: Accept the risk passively
Low-impact risks often do not justify the cost of active responses, making passive acceptance the most efficient approach.
Question 7: When forming a joint venture to pursue a market opportunity, the project is using which opportunity response strategy?
- Exploit
- Enhance
- Share (Correct answer)
- Accept
Correct answer: Share
Sharing involves allocating ownership of an opportunity to a third party (e.g., joint venture, partnership) better able to capture it.
Project Management Risk Response Planning 4
Which of the following is an example of the 'Enhance' strategy for opportunities?