Project Risk Management Project Risk Management 4

Question 1

Which document outlines how risk management activities will be structured and performed throughout the project?

Accepted Answer

Risk management plan

Answer

The risk management plan defines the methodology, roles, timing, and categories for managing risk on the project.

Question 2

Expected Monetary Value (EMV) is calculated by:

Accepted Answer

Multiplying probability by impact cost

Answer

EMV = Probability × Impact, providing a weighted average outcome value used in decision tree analysis.

Question 3

A project manager exploits an opportunity by ensuring the positive event definitely occurs. This maps to which response strategy?

Accepted Answer

Exploit

Answer

Exploit removes uncertainty from an opportunity by making it certain to happen, often by assigning more resources.

Question 4

Which type of risk analysis uses numerical methods such as Monte Carlo simulation?

Accepted Answer

Quantitative risk analysis

Answer

Quantitative risk analysis uses statistical modeling to numerically assess the impact of risks on project objectives.

Question 5

Risk owners are assigned during which process?

Accepted Answer

Plan Risk Responses

Answer

Risk owners are designated in the Plan Risk Responses process to ensure accountability for each risk response.

Project Risk Management Practice Test