Project Risk Management Risk Management Planning 3

Question 1

A newly appointed project manager takes over a project that has no risk management plan. What should be the FIRST step?

Accepted Answer

Conduct Plan Risk Management to establish the approach before proceeding

Answer

Plan Risk Management must be performed first because it defines HOW all other risk processes will be conducted on the project.

Question 2

Which of the following BEST describes 'risk appetite' as documented in the risk management plan?

Accepted Answer

The degree of uncertainty an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite is the general degree of uncertainty an entity is willing to accept, reflecting its strategic willingness to take on risk in pursuit of value.

Question 3

On a large infrastructure project, the risk management plan assigns risk ownership to functional managers for technical risks and to the finance team for cost risks. What principle does this reflect?

Accepted Answer

Clear roles and responsibilities for risk management

Answer

Defining roles and responsibilities in the risk management plan ensures accountability by aligning risk ownership with the appropriate functional expertise.

Question 4

A risk management plan defines a probability-impact matrix with 'very low,' 'low,' 'medium,' 'high,' and 'very high' ratings. What is the PRIMARY purpose of this matrix?

Accepted Answer

To provide a consistent framework for prioritizing risks

Answer

The probability-impact matrix established in the risk management plan provides a consistent, agreed-upon framework for assessing and prioritizing risks during qualitative analysis.

Question 5

Which organizational process asset MOST directly influences how risk thresholds are set during Plan Risk Management?

Accepted Answer

Organizational risk attitudes and policies

Answer

The organization's documented risk attitudes, policies, and risk tolerances directly inform what thresholds are acceptable when planning the risk approach.

Project Risk Management Practice Test

Project Risk Management Practice Test

Project Risk Management Risk Management Planning 3