Project Risk Management Trivia 2 — Questions and Answers
Question 1: Which risk management process was introduced in PMBOK 6th edition as a standalone process?
- Identify Risks
- Implement Risk Responses (Correct answer)
- Monitor Risks
- Plan Risk Management
Correct answer: Implement Risk Responses
Implement Risk Responses was added as a distinct process in PMBOK 6th edition, separating it from Monitor Risks.
Question 2: What does the term 'risk appetite' describe in project risk management?
- The maximum loss a project can absorb
- The degree of uncertainty an organization is willing to accept (Correct answer)
- The number of risks on a risk register
- The budget allocated for contingency reserves
Correct answer: The degree of uncertainty an organization is willing to accept
Risk appetite describes the degree of uncertainty an organization is willing to accept in pursuit of its objectives.
Question 3: A project team discovers that a vendor's country is experiencing political instability. This is an example of which risk category?
- Technical risk
- External risk (Correct answer)
- Organizational risk
- Project management risk
Correct answer: External risk
Political instability in a vendor's country is an external risk, originating outside the project and organization.
Question 4: What is a 'secondary risk' in project management?
- A risk ranked second on the priority list
- A risk that occurs after project closure
- A new risk created by implementing a risk response (Correct answer)
- A risk with a secondary impact on schedule
Correct answer: A new risk created by implementing a risk response
A secondary risk arises as a direct result of implementing a risk response strategy.
Question 5: Which document typically serves as the primary input to the Plan Risk Management process?
- Risk register
- Project charter (Correct answer)
- Stakeholder register
- Issue log
Correct answer: Project charter
The project charter is a key input to Plan Risk Management as it defines high-level project information and initial constraints.
Question 6: In Monte Carlo simulation, what does the output probability distribution represent?
- The number of risks identified
- The range of possible project outcomes and their likelihoods (Correct answer)
- The stakeholder risk tolerance levels
- The schedule baseline variance
Correct answer: The range of possible project outcomes and their likelihoods
Monte Carlo simulation produces a probability distribution showing the likelihood of various project outcomes such as cost or schedule results.
Question 7: Which strategy is most appropriate when a risk has a very low probability but catastrophic potential impact?
- Accept
- Mitigate
- Transfer
- Avoid (Correct answer)
Correct answer: Avoid
Avoidance is most appropriate for catastrophic risks because it eliminates the threat entirely, regardless of low probability.
Project Risk Management Trivia 2
Which risk management process was introduced in PMBOK 6th edition as a standalone process?