Project Risk Management Trivia 4 — Questions and Answers
Question 1: What is 'risk urgency assessment' used for during Perform Qualitative Risk Analysis?
- Calculating the dollar value of a risk
- Identifying which risks require near-term responses (Correct answer)
- Ranking risks by their probability score
- Determining which risks to transfer to vendors
Correct answer: Identifying which risks require near-term responses
Risk urgency assessment identifies risks that may require near-term attention because the time to respond is short.
Question 2: Which term describes a risk that can benefit multiple projects if it occurs?
- Shared risk (Correct answer)
- Escalated risk
- Accepted opportunity
- Contingent risk
Correct answer: Shared risk
A shared risk is one whose ownership is best allocated to another party such as the program or portfolio level because it affects multiple projects.
Question 3: In the risk probability and impact matrix, what does a score in the 'red zone' typically indicate?
- The risk is closed and no longer monitored
- The risk requires immediate and active management attention (Correct answer)
- The risk has a low priority
- The risk should be accepted without response
Correct answer: The risk requires immediate and active management attention
Risks in the red zone have high probability and/or high impact and require immediate, active management responses.
Question 4: What is the key difference between residual risk and secondary risk?
- Residual risk remains after a response; secondary risk is created by the response (Correct answer)
- Residual risk is unimportant; secondary risk is critical
- Residual risk is transferred; secondary risk is avoided
- Residual risk is external; secondary risk is internal
Correct answer: Residual risk remains after a response; secondary risk is created by the response
Residual risk is what remains after a response is applied, while secondary risk is a new risk introduced by implementing the response.
Question 5: A project manager enhances the probability of an opportunity by adding a subject matter expert to the team. This is an example of which opportunity response strategy?
- Exploit
- Share
- Enhance (Correct answer)
- Accept
Correct answer: Enhance
Enhance increases the probability or impact of an opportunity, such as adding expertise to make success more likely.
Question 6: Which input is unique to the Monitor Risks process compared to earlier risk processes?
- Risk register
- Risk management plan
- Work performance data (Correct answer)
- Project charter
Correct answer: Work performance data
Work performance data (actual project execution data) is a unique input to Monitor Risks because it reflects real-time project execution status.
Question 7: What is 'risk reassessment' in the context of Monitor Risks?
- Creating the risk register for the first time
- Re-evaluating existing risks and identifying new ones as the project progresses (Correct answer)
- Closing all risks at project completion
- Transferring risk ownership to a new team member
Correct answer: Re-evaluating existing risks and identifying new ones as the project progresses
Risk reassessment is the periodic review of existing risks and identification of new risks as the project evolves.
Project Risk Management Trivia 4
What is 'risk urgency assessment' used for during Perform Qualitative Risk Analysis?