Project Risk Management Trivia 5 — Questions and Answers
Question 1: Which risk response strategy for threats involves making a third party responsible for the risk without eliminating it?
- Avoid
- Mitigate
- Transfer (Correct answer)
- Accept
Correct answer: Transfer
Transfer shifts the financial impact of a risk to a third party (e.g., insurance or subcontracting) without eliminating the risk itself.
Question 2: What is the purpose of a 'risk breakdown structure' (RBS)?
- To track which team member owns each risk
- To hierarchically categorize risk sources for comprehensive identification (Correct answer)
- To calculate the probability of each risk
- To display risk response timelines
Correct answer: To hierarchically categorize risk sources for comprehensive identification
An RBS organizes identified risks into hierarchical categories to ensure comprehensive coverage of all risk sources.
Question 3: What does a sensitivity analysis in quantitative risk analysis determine?
- How many risks are in the register
- Which risks have the most influence on a specific project outcome (Correct answer)
- The total cost of all identified risks
- Whether stakeholders are satisfied with risk responses
Correct answer: Which risks have the most influence on a specific project outcome
Sensitivity analysis identifies which individual risks or variables have the greatest potential impact on project outcomes.
Question 4: According to PMI, what is an 'overall project risk'?
- The sum of all individual risk scores
- The effect of uncertainty on the project as a whole (Correct answer)
- The number of risks exceeding the risk threshold
- The highest-ranked risk on the probability-impact matrix
Correct answer: The effect of uncertainty on the project as a whole
Overall project risk represents the effect of all uncertainty on the project as a whole, not just the sum of individual risks.
Question 5: Which risk identification technique involves reviewing historical project documents, lessons learned, and contracts?
- Brainstorming
- Document analysis (Correct answer)
- Delphi technique
- SWOT analysis
Correct answer: Document analysis
Document analysis involves reviewing project documents, historical records, and contracts to identify risks.
Question 6: A risk response that involves preparing contingency plans to be executed only if a trigger event occurs is called what?
- Active acceptance
- Passive acceptance
- Contingent response strategy (Correct answer)
- Enhanced acceptance
Correct answer: Contingent response strategy
A contingent response strategy (or contingency plan) is prepared in advance but only implemented when a specific trigger event occurs.
Question 7: Which factor primarily differentiates 'risk threshold' from 'risk appetite' in an organization?
- Risk threshold is qualitative; risk appetite is quantitative
- Risk threshold is a measurable level; risk appetite is a general attitude toward uncertainty (Correct answer)
- Risk threshold applies to opportunities; risk appetite applies to threats
- Risk threshold is set by the team; risk appetite is set by regulators
Correct answer: Risk threshold is a measurable level; risk appetite is a general attitude toward uncertainty
Risk appetite is the general attitude toward risk-taking, while risk threshold is the specific measurable level at which a risk becomes unacceptable.
Project Risk Management Trivia 5
Which risk response strategy for threats involves making a third party responsible for the risk without eliminating it?