Project Risk Management Flashcards

Which response strategy for opportunities involves allocating ownership to a third party best positioned to capture the benefit?

Answer: Share

Sharing transfers ownership of an opportunity to a third party (e.g., a joint venture) that is better positioned to realize it.

A project manager reviews risk responses at the end of the project to document what worked. This activity BEST fits within:

Answer: Close Project or Phase

Lessons learned from risk responses are captured during the Close Project or Phase process and stored in organizational process assets.

Workarounds are MOST commonly associated with:

Answer: Responses to risks that were not previously identified

Workarounds are unplanned responses developed in real time when unanticipated risks (unknown unknowns) occur.

Which of the following BEST represents an overall project risk?

Answer: The combined effect of all individual risks on project objectives

Overall project risk represents the aggregate effect of all uncertainties on project outcomes, not just individual risk events.

A Risk Breakdown Structure (RBS) is used to:

Answer: Organize risks into hierarchical categories

The RBS organizes identified risks into a hierarchical structure by source or category to facilitate analysis.

The 'Enhance' strategy for opportunities is BEST described as:

Answer: Increasing the probability or impact of a positive risk

Enhancing focuses on increasing either the likelihood or the potential benefit of an opportunity without guaranteeing it will happen.

Management reserve is DIFFERENT from contingency reserve because management reserve:

Answer: Addresses unknown unknowns and requires sponsor approval to use

Management reserve is held outside the project baseline for unforeseen events (unknown unknowns) and typically requires executive approval to access.