Project Risk Management Risk Response Strategies 5

Question 1

A project manager identifies that if a competitor releases a similar product early, it will invalidate the project's business case. The team decides to accelerate the project schedule to beat the competitor. This response strategy for an opportunity is:

Accepted Answer

Exploit

Answer

Exploiting an opportunity means taking deliberate action to ensure the positive event occurs, such as accelerating the schedule to capture the market first.

Question 2

Which of the following scenarios best illustrates 'enhance' as a risk response for an opportunity?

Accepted Answer

Adding more experienced staff to increase the chance of early delivery

Answer

Enhance increases the probability or impact of an opportunity, such as assigning experienced staff to improve the likelihood of early delivery.

Question 3

A project manager includes $50,000 in contingency reserves in the project budget. This reserve is intended to address:

Accepted Answer

Known risks that have been identified and accepted

Answer

Contingency reserves are planned to address identified risks that have been accepted, while management reserves cover unknown unknowns.

Question 4

A risk response strategy results in the creation of a new risk. What must the project manager do?

Accepted Answer

Document and analyze the new secondary risk and plan appropriate responses

Answer

Secondary risks must be documented in the risk register and managed with their own response plans, just like any other identified risk.

Question 5

Which risk response strategy is appropriate when a threat is outside the project team's control and is best handled by a party with greater capability?

Accepted Answer

Transfer

Answer

Transfer is used when another party is better positioned to manage the risk, shifting the responsibility and financial impact to them.

Project Risk Management Practice Test

Project Risk Management Practice Test

Project Risk Management Risk Response Strategies 5