Project Management Risk Response Planning 5 — Questions and Answers
Question 1: A project manager discovers that a risk response is not working as planned after implementation. The BEST next step is to:
- Ignore it because the response was already approved
- Update the risk register and develop an alternative response (Correct answer)
- Immediately escalate to the project sponsor
- Accept the risk passively going forward
Correct answer: Update the risk register and develop an alternative response
If a response proves ineffective, the risk register should be updated and an alternative or fallback response developed.
Question 2: Which risk response strategy is MOST appropriate when the probability of a threat occurring is very high and the impact would be catastrophic?
- Accept
- Mitigate
- Transfer
- Avoid (Correct answer)
Correct answer: Avoid
When both probability and impact are extreme, avoidance — eliminating the risk entirely by changing the plan — is the most prudent strategy.
Question 3: A risk trigger (also called a 'risk symptom' or 'warning sign') is used to:
- Calculate the expected monetary value of a risk
- Signal that a risk event is about to occur, activating the contingency plan (Correct answer)
- Identify new risks during project execution
- Assign ownership of risks to team members
Correct answer: Signal that a risk event is about to occur, activating the contingency plan
A risk trigger is an early indicator that a risk event is imminent, prompting the activation of the pre-planned contingency response.
Question 4: The risk response strategies of Avoid, Transfer, Mitigate, and Accept are used for which type of risks?
- Opportunities only
- Threats only (Correct answer)
- Both threats and opportunities
- Unknown unknowns only
Correct answer: Threats only
Avoid, Transfer, Mitigate, and Accept are the four PMBOK strategies specifically for addressing threats (negative risks).
Question 5: A project manager budgets additional funds in the management reserve for unknown risks. This approach represents:
- Active acceptance of known risks
- Passive acceptance of unknown risks (Correct answer)
- Transfer of budget risk to the PMO
- Mitigation of cost overrun risk
Correct answer: Passive acceptance of unknown risks
Management reserve addresses unknown unknowns through passive acceptance — funds are held but no specific response plan exists.
Question 6: Which of the following scenarios BEST illustrates risk mitigation focused on reducing impact rather than probability?
- Requiring a vendor to provide performance bonds
- Installing fire sprinklers in the project facility (Correct answer)
- Eliminating a high-risk project phase from scope
- Adding a second supplier to prevent delivery delays
Correct answer: Installing fire sprinklers in the project facility
Fire sprinklers don't prevent fires (probability), but they reduce damage severity (impact) when a fire does occur.
Question 7: During risk response planning, the project manager should ensure that responses are commensurate with the risk. This principle means:
- Every risk must receive a formal written response strategy
- The cost and effort of the response should be proportional to the risk's significance (Correct answer)
- All team members must agree before any response is implemented
- Response strategies must be reviewed and approved by the PMO
Correct answer: The cost and effort of the response should be proportional to the risk's significance
Risk responses should be cost-effective; spending more on a response than the risk's expected monetary value is wasteful.
Project Management Risk Response Planning 5
A project manager discovers that a risk response is not working as planned after implementation.
The BEST next step is to: