Project Risk Management Project Risk Management MCQ 2 — Questions and Answers
Question 1: Which risk response strategy involves shifting the negative impact of a risk to a third party?
- Avoid
- Mitigate
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
Transfer shifts the financial or operational impact of a risk to another party, such as through insurance or outsourcing.
Question 2: 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:
- Contingency reserve (Correct answer)
- Management reserve
- Risk avoidance
- Risk mitigation
Correct answer: Contingency reserve
Contingency reserves are buffer time or budget added to account for identified risks that may occur.
Question 3: Which tool is used to prioritize risks based on their probability and impact?
- Risk register
- Probability and impact matrix (Correct answer)
- Monte Carlo simulation
- SWOT analysis
Correct answer: Probability and impact matrix
A probability and impact matrix maps risks on a grid to classify them as high, medium, or low priority.
Question 4: What does 'residual risk' refer to in project risk management?
- Risk that has not yet been identified
- Risk remaining after responses have been implemented (Correct answer)
- Risk transferred to a third party
- Risk discovered during project closure
Correct answer: Risk remaining after responses have been implemented
Residual risk is the risk that remains after planned risk responses have been applied.
Question 5: During which process is the Risk Management Plan created?
- Identify Risks
- Plan Risk Management (Correct answer)
- Perform Qualitative Risk Analysis
- Monitor Risks
Correct answer: Plan Risk Management
Plan Risk Management is the process that defines how risk management activities will be conducted throughout the project.
Question 6: A project manager wants to exploit a positive risk. Which of the following actions best describes exploitation?
- Sharing the opportunity with a partner to increase the chance of occurrence
- Ensuring the opportunity definitely occurs (Correct answer)
- Accepting the benefit if it occurs
- Increasing the project budget to capitalize on the opportunity
Correct answer: Ensuring the opportunity definitely occurs
Exploiting a positive risk means taking actions to ensure the opportunity definitely happens.
Question 7: Which of the following is an example of a secondary risk?
- A risk that was not identified during planning
- A new risk that arises as a result of implementing a risk response (Correct answer)
- A risk with very low probability
- A risk owned by an external stakeholder
Correct 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.
Project Risk Management Project Risk Management MCQ 2
Which risk response strategy involves shifting the negative impact of a risk to a third party?