Project Risk Management Trivia 3 — Questions and Answers
Question 1: What distinguishes a 'risk owner' from a 'risk action owner' on a project?
- Risk owners approve the budget; action owners spend it
- Risk owners are accountable for the risk; action owners execute specific response tasks (Correct answer)
- Risk owners identify risks; action owners close them
- Risk owners are external; action owners are internal
Correct answer: Risk owners are accountable for the risk; action owners execute specific response tasks
The risk owner is accountable for overall risk management, while the risk action owner performs specific response tasks.
Question 2: Which technique uses expert judgment structured through anonymous questionnaires and feedback rounds?
- Brainstorming
- Delphi technique (Correct answer)
- Nominal group technique
- Affinity diagram
Correct answer: Delphi technique
The Delphi technique gathers expert consensus through anonymous questionnaires and iterative feedback rounds.
Question 3: What is the primary purpose of a risk audit in project management?
- To add new risks to the register
- To examine and document the effectiveness of risk responses (Correct answer)
- To calculate the expected monetary value of risks
- To assign risk owners to each identified risk
Correct answer: To examine and document the effectiveness of risk responses
Risk audits examine and document whether risk responses are effective and whether the risk management process is being followed.
Question 4: When is a 'workaround' used in project risk management?
- Before a risk is identified
- As a planned response for high-priority risks
- As an unplanned response to an unidentified risk that occurs (Correct answer)
- When transferring risk to a third party
Correct answer: As an unplanned response to an unidentified risk that occurs
A workaround is an unplanned response developed when a risk occurs that was not previously identified or planned for.
Question 5: What does a 'tornado diagram' display in quantitative risk analysis?
- The sequence of risk events over time
- The relative impact of individual risks on project objectives (Correct answer)
- The probability distribution of project costs
- The network of interrelated risks
Correct answer: The relative impact of individual risks on project objectives
A tornado diagram ranks risks by their relative impact on a specific project variable, with the highest-impact risk at the top.
Question 6: Which of the following is NOT a tool or technique used in the Identify Risks process?
- SWOT analysis
- Checklist analysis
- Expected monetary value analysis (Correct answer)
- Document analysis
Correct answer: Expected monetary value analysis
Expected monetary value (EMV) analysis is a quantitative tool used in the Perform Quantitative Risk Analysis process, not Identify Risks.
Question 7: A project manager sets aside 15% of the budget as a management reserve. Who has authority to approve its use?
- The project manager
- The risk owner
- Senior management or the project sponsor (Correct answer)
- The PMO director
Correct answer: Senior management or the project sponsor
Management reserves are controlled by senior management or the sponsor, not the project manager, unlike contingency reserves.
Project Risk Management Trivia 3
What distinguishes a 'risk owner' from a 'risk action owner' on a project?