Project Risk Management Project Risk Management 5 — Questions and Answers
Question 1: Which response strategy for opportunities involves allocating ownership to a third party best positioned to capture the benefit?
- Exploit
- Enhance
- Share (Correct answer)
- Accept
Correct answer: Share
Sharing transfers ownership of an opportunity to a third party (e.g., a joint venture) that is better positioned to realize it.
Question 2: A project manager reviews risk responses at the end of the project to document what worked. This activity BEST fits within:
- Perform Qualitative Risk Analysis
- Monitor Risks
- Identify Risks
- Close Project or Phase (Correct answer)
Correct 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.
Question 3: Workarounds are MOST commonly associated with:
- Planned risk responses for known risks
- Responses to risks that were not previously identified (Correct answer)
- Budget allocation for contingency
- Secondary risks from mitigation plans
Correct answer: Responses to risks that were not previously identified
Workarounds are unplanned responses developed in real time when unanticipated risks (unknown unknowns) occur.
Question 4: Which of the following BEST represents an overall project risk?
- A single identified risk event with high probability
- The combined effect of all individual risks on project objectives (Correct answer)
- The risk with the highest EMV on the project
- A risk that affects multiple work packages
Correct 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.
Question 5: A Risk Breakdown Structure (RBS) is used to:
- Rank risks by probability and impact
- Organize risks into hierarchical categories (Correct answer)
- Calculate expected monetary value
- Assign risk owners
Correct answer: Organize risks into hierarchical categories
The RBS organizes identified risks into a hierarchical structure by source or category to facilitate analysis.
Question 6: The 'Enhance' strategy for opportunities is BEST described as:
- Ensuring the opportunity definitely occurs
- Increasing the probability or impact of a positive risk (Correct answer)
- Transferring the opportunity to a third party
- Ignoring the opportunity due to low impact
Correct 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.
Question 7: Management reserve is DIFFERENT from contingency reserve because management reserve:
- Is included in the project cost baseline
- Covers known risks identified during planning
- Addresses unknown unknowns and requires sponsor approval to use (Correct answer)
- Is calculated using EMV analysis
Correct 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.
Project Risk Management Project Risk Management 5
Which response strategy for opportunities involves allocating ownership to a third party best positioned to capture the benefit?