Project Risk Management Flashcards

Which technique uses expert judgment and group brainstorming to identify risks that may affect the project?

Answer: Delphi technique

The Delphi technique collects anonymous expert opinions iteratively to reach consensus on risk identification.

A risk response that reduces the probability or impact of a threat is known as:

Answer: Mitigate

Mitigation involves taking early action to reduce the likelihood or consequence of a negative risk event.

When a risk response creates a new risk, the new risk is called a:

Answer: Secondary risk

Secondary risks arise as a direct result of implementing a risk response and must also be managed.

Which of the following BEST describes a risk appetite?

Answer: The degree of uncertainty an organization is willing to accept

Risk appetite reflects how much risk an organization is willing to take in pursuit of its objectives.

In quantitative risk analysis, which technique determines which risks have the most potential impact on project objectives?

Answer: Sensitivity analysis

Sensitivity analysis (often shown as a tornado diagram) identifies which variables have the greatest effect on project outcomes.

A project team decides to eliminate a specific project activity to remove an associated risk. This strategy is called:

Answer: Avoid

Risk avoidance changes the project plan to eliminate the threat entirely, often by removing scope or changing the approach.

Risk thresholds are MOST important for:

Answer: Determining which risks require a response plan

Risk thresholds define the boundary above which risks must have a formal response plan developed.