Project Risk Management Risk Monitoring and Control 2 — Questions and Answers
Question 1: Which tool is primarily used to track the status of identified risks and monitor residual risks throughout the project?
- Risk breakdown structure
- Risk register (Correct answer)
- Stakeholder register
- Issue log
Correct answer: Risk register
The risk register is the primary document for tracking identified risks, responses, owners, and current status throughout the project lifecycle.
Question 2: A project manager discovers a risk that was not identified during initial planning. What should be done first?
- Immediately escalate to the sponsor
- Add it to the risk register and analyze it (Correct answer)
- Implement a workaround
- Close the project risk log
Correct answer: Add it to the risk register and analyze it
Newly identified risks should be added to the risk register and then analyzed for probability and impact before determining a response.
Question 3: What is a 'risk trigger' in the context of risk monitoring and control?
- The cause of a risk event
- An indicator that a risk is about to occur (Correct answer)
- The financial impact of a risk
- A stakeholder concern about risk
Correct answer: An indicator that a risk is about to occur
A risk trigger (also called a warning sign or symptom) is an event or condition that indicates a risk is about to occur or has occurred.
Question 4: Which of the following best describes 'workarounds' in risk monitoring?
- Pre-planned responses for high-priority risks
- Unplanned responses to risks that were not anticipated or mitigated (Correct answer)
- Budget reserves set aside for risk events
- Scheduled risk review meetings
Correct answer: Unplanned responses to risks that were not anticipated or mitigated
Workarounds are unplanned responses developed on the spot when a risk occurs that was either not identified or had no planned response.
Question 5: During a risk audit, the project team evaluates the effectiveness of risk responses. Who typically facilitates this audit?
- The project sponsor
- An independent auditor or the project manager (Correct answer)
- Only external consultants
- The customer representative
Correct answer: An independent auditor or the project manager
Risk audits can be facilitated by the project manager or an independent auditor to objectively evaluate how well risk responses have worked.
Question 6: What is the primary purpose of reserve analysis during the Monitor Risks process?
- To allocate budget for team training
- To compare remaining contingency reserves to remaining risk exposure (Correct answer)
- To calculate the project's NPV
- To determine resource availability
Correct answer: To compare remaining contingency reserves to remaining risk exposure
Reserve analysis during monitoring compares the amount of contingency reserves remaining against the level of remaining risk to ensure adequate coverage.
Question 7: Which metric indicates that risk monitoring activities are being performed effectively on a project?
- All risks have been closed before project completion
- Risk responses are implemented on time and secondary risks are tracked (Correct answer)
- No new risks have been identified after planning
- The risk register has not been updated since inception
Correct answer: Risk responses are implemented on time and secondary risks are tracked
Effective risk monitoring is demonstrated when responses are implemented as planned and secondary risks (resulting from responses) are identified and tracked.
Project Risk Management Risk Monitoring and Control 2
Which tool is primarily used to track the status of identified risks and monitor residual risks throughout the project?