Project Risk Management Risk Response Strategies 3 — Questions and Answers
Question 1: An opportunity risk response strategy that attempts to guarantee the opportunity will occur is called:
- Share
- Enhance
- Exploit (Correct answer)
- Accept
Correct answer: Exploit
Exploit is used for opportunities when the team wants to ensure the positive risk definitely occurs.
Question 2: A project manager adds a skilled resource to a task to reduce the time needed to complete it, thereby reducing schedule risk. This is an example of:
- Avoid
- Transfer
- Mitigate (Correct answer)
- Accept
Correct answer: Mitigate
Mitigation reduces the probability or impact of a threat; adding resources to shorten duration reduces schedule risk impact.
Question 3: Which of the following best describes the 'Share' strategy for opportunities?
- Eliminating the opportunity by changing the project plan
- Partnering with a third party to capture the benefit of the opportunity (Correct answer)
- Doing nothing and benefiting if the opportunity occurs naturally
- Increasing the probability that the opportunity will occur
Correct answer: Partnering with a third party to capture the benefit of the opportunity
Sharing involves allocating ownership of an opportunity to a third party best positioned to capture its benefit.
Question 4: A contingency plan differs from a fallback plan in that a contingency plan is:
- Used when the primary response plan fails
- Implemented when a defined risk trigger occurs (Correct answer)
- Only used for threats, not opportunities
- Created after the risk has already occurred
Correct answer: Implemented when a defined risk trigger occurs
A contingency plan is a pre-planned response triggered when a specific risk event occurs, while a fallback plan activates if the contingency plan is insufficient.
Question 5: Which risk response strategy is MOST suitable when a project team wants to increase the probability of a positive risk occurring?
- Exploit
- Enhance (Correct answer)
- Share
- Accept
Correct answer: Enhance
Enhance focuses on increasing the probability and/or impact of an opportunity without guaranteeing it will occur.
Question 6: A project manager uses fixed-price contracts with vendors to address cost uncertainty. This risk response strategy is:
- Mitigate
- Avoid
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
Fixed-price contracts transfer cost risk to the vendor, making them responsible for overruns beyond the agreed price.
Question 7: Residual risks are best described as:
- New risks that emerge after a response is implemented
- Risks that remain after risk responses have been applied (Correct answer)
- Risks that have been fully mitigated
- Risks identified but not yet analyzed
Correct answer: Risks that remain after risk responses have been applied
Residual risks are the remaining threats or opportunities that persist after risk responses have been planned or executed.
Project Risk Management Risk Response Strategies 3
An opportunity risk response strategy that attempts to guarantee the opportunity will occur is called: