Interactive: Risk

This eLearning course will quiz you on the knowledge contained in the Risk lesson and help identify your weak areas.

You should know and understand the Fundamental concepts of Risk Management as presented in Chapter 11 of the PMBOK and the PMP Exam Content Outline available from www.pmi.org

Which statements are true or false regarding Risk Management?

The Following are True:

Risk can be good or bad

Known risks can be managed with a Contingency Reserve

Any risk, by definition, is something that has not yet occurred

Good risks are opportunities while bad risks are threats

  • Risk can be good or bad
  • The common thing with all risks is that they should be planned for
  • Known risks can be managed with a Contingency Reserve
  • Any risk, by definition, is something that has not yet occurred
  • Expected Monetary Value is the $ value assigned to a risk based on impact of occurrence multiplied times financial probability
  • Good risks are opportunities while bad risks are threats
Mark each statement with True or False.

Which statements are true or false about Plan Risk Management?

The Following are True:

The tools used are Analytical Techniques, Expert Judgement and Meetings

Ensures the degree, type, and visibility of risk management are commensurate with both the risks and the importance of the project to the organization

The Risk Breakdown Structure is created here and includes all the categories of potential risk on the project

The Stakeholder Register is used here to help determine Stakeholder risk tolerances and Risk management roles & responsibilities

  • The Risk Register is the main output
  • The tools used are Analytical Techniques, Expert Judgement and Meetings
  • Ensures the degree, type, and visibility of risk management are commensurate with both the risks and the importance of the project to the organization
  • The Risk Breakdown Structure is created here and includes all the categories of potential risk on the project
  • Specific risks are planned for
  • The Stakeholder Register is used here to help determine Stakeholder risk tolerances and Risk management roles & responsibilities
Mark each statement with True or False.

Place the terms where they belong.

  • PM Plan
  • Charter
  • Stakeholder
  • Importance
  • Identify
  • Categories
  • Tolerances
  • Techniques

Which of the following are inputs to Identify Risks?

Answers:

Cost Management Plan

Stakeholder Register

Scope Baseline

Procurement Documents

  • Cost Management Plan
  • Project Schedule
  • Stakeholder Register
  • Scope Baseline
  • Communications Management Plan
  • Procurement Documents
Select all that apply.

Put the following processes in the correct order of the sequence in which they should be performed.

The Correct Order is:

  1. Identify Stakeholders
  2. Plan Risk Management
  3. Identify Risks
  4. Perform Qualitative Risk Analysis
  5. Perform Quantitative Risk Analysis
  6. Plan Risk Responses
  7. Control Risks
  • Identify Stakeholders
  • Plan Risk Management
  • Identify Risks
  • Perform Qualitative Risk Analysis
  • Perform Quantitative Risk Analysis
  • Plan Risk Responses
  • Control Risks

Which of the following are tools or techniques used in Identify Risks?

Answers:

Documentation Reviews

Information Gathering Techniques

Checklist Analysis

SWOT Analysis

  • Probability & Impact Matrix
  • Documentation Reviews
  • Information Gathering Techniques
  • Checklist Analysis
  • SWOT Analysis
  • Sensitivity Analysis
Select all that apply.

Which of the following are inputs to Perform Qualitative Risk Analysis?

Answers:

Risk Register

Scope Baseline

EEF

Risk Management Plan

  • Risk Register
  • Risk Urgency Assessment
  • Stakeholder Register
  • Scope Baseline
  • EEF
  • Risk Management Plan
Select all that apply.

Which of the following are tools or techniques used in Perform Qualitative Risk Analysis?


Answers:

Risk Data Quality Assessment

Risk Urgency Assessment

Expert Judgement

Probability & Impact Matrix

  • Risk Breakdown Structure
  • Risk Data Quality Assessment
  • Risk Urgency Assessment
  • Expert Judgement
  • Probability & Impact Matrix
  • 3-point estimating
Select all that apply.

Place the terms where they belong.

  • Identify
  • Documentation
  • Baseline
  • Gathering
  • Assumptions
  • SWOT
  • Duration
  • Procurement
  • Heart
  • Risk Register
  • Known

Place the terms where they belong.

  • Qualitative
  • Scope
  • Risk
  • Probability
  • Matrix
  • Urgency
  • Documents
  • Each
  • Uncertainty
  • Identify Risks
  • Impact
  • PIM Score

Place the terms where they belong.

  • Quantitative
  • Top
  • Gathering
  • Uncertainty
  • Modeling
  • Cost
  • Risk
  • Monetary
  • Re-Prioritized
  • Qualitative
  • Documents

Which of the following are inputs to Perform Quantitative Risk Analysis?

Answers:

Risk Register

Schedule Management Plan

EEF

Cost Management Plan


  • Risk Register
  • Scope Baseline
  • Schedule Management Plan
  • EEF
  • Activity Cost Estimates
  • Cost Management Plan
Select all that apply.

Which of the following are tools or techniques to Perform Quantitative Risk Analysis?

Answers:

Quantitative Risk Analysis &Modeling Techniques

Expert Judgement

Data Gathering & Representation Techniques

  • Probability & Impact Matrix
  • Quantitative Risk Analysis &Modeling Techniques
  • SWOT Analysis
  • Expert Judgement
  • Data Gathering & Representation Techniques
  • Checklist Analysis
Select all that apply.

Which of the following statements are true or false regarding a Risk Breakdown Structure?

The Following are True:

It is a tree diagram

It is part of the Risk Management Plan

It identifies risk categories

  • It is a tree diagram
  • It is created during Identify Risks
  • It is part of the Risk Management Plan
  • It identifies specific risks
  • It identifies risk categories
  • It is used to help determine the quantitative analysis of each risk
Select True or False for each statement.

Which of the following statements are true or false regarding the Probability & Impact Matrix?

The Following are True:

Probability & Impact definitions are determined during Plan Risk Management

A total PIM score is placed on the Risk Register during Perform Qualitative Risk Analysis

The PIM helps determine the organization's risk thresholds as low, moderate or high for each risk

  • Probability & Impact definitions are determined during Plan Risk Management
  • The PIM is used during Identify Risks to determine probability & impact of each risk
  • A total PIM score is placed on the Risk Register during Perform Qualitative Risk Analysis
  • The PIM helps determine the organization's risk thresholds as low, moderate or high for each risk
  • PIM score indicates the $$ amount that should be added to the Contingency Reserve for each risk
  • A PIM can only be used for threats
Select True of False for each statement.

Solve the EMV Decision Tree below by placing the values and equations where they belong.

  • 65
  • 35
  • $130M + $31.5M = $161.5M
  • $161.5M - $120M = $41.5M
  • $78M + $21M = $99M
  • $99M - $50M = $49M

Place the terms where they belong.

  • Responses
  • Risk Register
  • Threats
  • Opportunities
  • Expert Judgement
  • PM Plan
  • Documents
  • Contingent
  • Resources
  • Each
  • Quantitative

Place the terms where they belong.

  • Threats
  • Opportunities
  • Contingent
  • Accept
  • Avoid
  • Transfer
  • Mitigate
  • Exploit
  • Share
  • Enhance

Match each risk strategy to the appropriate example.

Answers:

Avoid - Performing the project during the summer due to potential snow delays in the winter

Transfer - Hiring a sub-contractor on a fixed-price contract due to your organization's lack of expertise in the work

Mitigate - Requiring all project team members to attend quality training to decrease the chance for work mistakes

Exploit - Using all available resources to ensure a milestone is met which will trigger a bonus payment from the sponsor

Share - Partnering with a sub-contractor in response to a government RFP

Enhance - Sending your best team leader to collect requirements for additional work proposed by the sponsor.

Accept - Recognizing that the cost of fuel may cause cost savings or overruns on your project

  • Avoid
    Performing the project during the summer due to potential snow delays in the winter
  • Transfer
    Hiring a sub-contractor on a fixed-price contract due to your organization's lack of expertise in the work
  • Mitigate
    Requiring all project team members to attend quality training to decrease the chance for work mistakes
  • Exploit
    Using all available resources to ensure a milestone is met which will trigger a bonus payment from the sponsor
  • Share
    Partnering with a sub-contractor in response to a government RFP
  • Enhance
    Sending your best team leader to collect requirements for additional work proposed by the sponsor.
  • Accept
    Recognizing that the cost of fuel may cause cost savings or overruns on your project

Match each risk term to its correct definition.

Answers:

Pure Risk - Any risk that can be insured, like property damage, health, life, equipment breakage

Business Risk - Any risk that cannot be insured, like loss of stock price, cost overruns, lost contract

Residual Risk - Any risk that still remains after a risk strategy has been implemented, like the deductible on an insurance policy

Secondary Risk - Any risk that is induced by implementing a risk strategy, like the possibility that a sub-contractor (transfer strategy) will not perform to the desired quality standard

  • Pure Risk
    Any risk that can be insured, like property damage, health, life, equipment breakage
  • Business Risk
    Any risk that cannot be insured, like loss of stock price, cost overruns, lost contract
  • Residual Risk
    Any risk that still remains after a risk strategy has been implemented, like the deductible on an insurance policy
  • Secondary Risk
    Any risk that is induced by implementing a risk strategy, like the possibility that a sub-contractor (transfer strategy) will not perform to the desired quality standard

Place the terms where they belong.

  • Control
  • PM
  • Risk
  • Reassessment
  • Performance
  • Analysis
  • Managed
  • Revised
  • Contingency
  • Triggers
  • Optimize
  • Throughout