Project Risk Management MCQ Flashcards

Which risk response strategy involves shifting the negative impact of a risk to a third party?

Answer: Transfer

Transfer shifts the financial or operational impact of a risk to another party, such as through insurance or outsourcing.

A project team identifies that a vendor delay could push the schedule out by two weeks. They add an extra two weeks to the project plan. This is an example of:

Answer: Contingency reserve

Contingency reserves are buffer time or budget added to account for identified risks that may occur.

Which tool is used to prioritize risks based on their probability and impact?

Answer: Probability and impact matrix

A probability and impact matrix maps risks on a grid to classify them as high, medium, or low priority.

What does 'residual risk' refer to in project risk management?

Answer: Risk remaining after responses have been implemented

Residual risk is the risk that remains after planned risk responses have been applied.

During which process is the Risk Management Plan created?

Answer: Plan Risk Management

Plan Risk Management is the process that defines how risk management activities will be conducted throughout the project.

A project manager wants to exploit a positive risk. Which of the following actions best describes exploitation?

Answer: Ensuring the opportunity definitely occurs

Exploiting a positive risk means taking actions to ensure the opportunity definitely happens.

Which of the following is an example of a secondary risk?

Answer: A new risk that arises as a result of implementing a risk response

Secondary risks are new risks that emerge as a direct consequence of executing a risk response action.