Project Risk Management Risk Response Strategies 4 — Questions and Answers
Question 1: Secondary risks are best defined as:
- Risks with secondary (lower) priority in the risk register
- Risks that arise as a direct result of implementing a risk response (Correct answer)
- Risks identified during the second risk identification workshop
- Risks transferred to secondary project stakeholders
Correct answer: Risks that arise as a direct result of implementing a risk response
Secondary risks are new risks introduced by the implementation of a risk response strategy.
Question 2: A project manager decides to prototype a new technology before full deployment to reduce the risk of technical failure. This is an example of:
- Avoid
- Transfer
- Mitigate (Correct answer)
- Exploit
Correct answer: Mitigate
Prototyping reduces the probability or impact of technical failure risk, which is a mitigation strategy.
Question 3: Which of the following is a key input when selecting among multiple risk response options?
- Stakeholder engagement plan
- Risk appetite and tolerance of the organization (Correct answer)
- Project organizational chart
- Change control log
Correct answer: Risk appetite and tolerance of the organization
The organization's risk appetite and tolerance define how much risk is acceptable, directly influencing which response strategy is most appropriate.
Question 4: A project team is considering canceling a high-risk deliverable that is not part of the core project objectives. This is an example of risk:
- Transfer
- Mitigation
- Avoidance (Correct answer)
- Acceptance
Correct answer: Avoidance
Removing a risky element from the project scope eliminates the risk entirely, which is the definition of avoidance.
Question 5: Active acceptance of a risk involves:
- Taking no action but monitoring the risk
- Establishing a contingency reserve or contingency plan in advance (Correct answer)
- Transferring the risk to a third party
- Reducing the probability of the risk
Correct answer: Establishing a contingency reserve or contingency plan in advance
Active acceptance acknowledges the risk and prepares contingency reserves or plans in case it occurs.
Question 6: A risk trigger (also called a risk symptom or warning sign) is primarily used to:
- Quantify the monetary impact of a risk
- Signal that a risk event is about to occur or has occurred (Correct answer)
- Identify the risk response owner
- Determine the priority of risks in the register
Correct answer: Signal that a risk event is about to occur or has occurred
Risk triggers are early warning indicators that alert the team when a risk is imminent or has materialized, prompting response activation.
Question 7: When developing risk responses, the project manager should ensure that responses are:
- Always led by the project sponsor
- Appropriate, timely, cost-effective, and agreed upon by relevant stakeholders (Correct answer)
- Documented only for high-priority risks
- Applied uniformly across all project phases
Correct answer: Appropriate, timely, cost-effective, and agreed upon by relevant stakeholders
Effective risk responses must be proportionate to the risk, actionable within the timeframe needed, economically justified, and supported by stakeholders.
Project Risk Management Risk Response Strategies 4
Secondary risks are best defined as: