Quick Quiz - Risk

Quick Quizzes are a great way to assess how much you learned during the PMP Boot Camp. They aren't called "Quick" because they are short or take a small amount of time, but rather because you should be able to answer each question quickly. You probably won't see many questions like this on the PMP exam, but it is a good way to solidify the base knowledge upon which you must draw to answer PMP situational, behavioral questions. This Quick Quiz will help you obtain the 1st of the 3 keys to passing the PMP Exam: An in-depth understanding of the PMBOK. 

Quick Quizzes are timed based on an average of 72 seconds per question.

If you cannot answer all of these questions correctly, go back and study the student guides, read the PMBOK, and prepare questions to ask your instructor during the next class session.

To obtain an in-depth understanding of the PMBOK (copy)

Which of the following is true about risk?

Good risk is called opportunity while bad risk is called threat

  • Good risk is called opportunity while bad risk is called threat
  • Unknown risks are documented on the risk register
  • The common thing among all risks is that they should be assigned a contingency reserve
  • EVM is the $$ value assigned to a risk based on probability of occurrence multiplied times estimated financial impact

What is the best definition of risk?

Anything uncertain about your project

  • Something that could negatively impact your project
  • Something that has happened to your project
  • Anything uncertain about your project
  • An unknown event

What is the high-level starting point to determine the appropriate degree, type and visibility of risk management on a project?

Project Charter

  • Risk Management Plan
  • Project Charter
  • Scope Statement
  • PM Plan

Which would not be found in the Risk Management Plan?

Risk Urgency Matrix

  • Risk Breakdown Structure
  • Probability & Impact Definitions
  • Stakeholder risk tolerances
  • Risk Urgency Matrix

Which of the following is not a tool in Plan Risk Management?

Identify Risks

  • Analytical Techniques
  • Expert Judgement
  • Meetings
  • Identify Risks

What is the best description of a Risk Breakdown Structure

A tree diagram that identifies all the categories of where potential risk might occur

  • It identifies specific risks
  • A decision tree to help identify an appropriate risk response
  • A tree diagram that identifies all the categories of where potential risk might occur
  • A spreadsheet listing the EMV, Buffer Time, and PIM Score for each risk

During which process should Probability and Impact definitions be determined?

Plan Risk Management

  • Perform Qualitative Risk Analysis
  • Plan Risk Management
  • Identify Risk
  • Risk Urgency Assessment

Which inputs would you need to Identify Risks?

Scope Baseline, Activity Cost Estimates, Stakeholder Register

  • Scope Baseline, Activity Cost Estimates, Stakeholder Register
  • Stakeholder Management Plan, SWOT Analysis, Agreements
  • Activity Duration Estimates, Risk Breakdown Structure, Schedule Baseline
  • Cost Baseline, Procurement Documents, Project Documents

Which of the following is not a tool in Identify Risks?

Risk Urgency Assessment

  • SWOT Analysis
  • Risk Urgency Assessment
  • Assumptions Analysis
  • Diagramming Techniques

What is the output of Identify Risks?

Risk Register

  • Risk Management Plan
  • Risk Breakdown Structure
  • Probability & Impact Matrix
  • Risk Register

What is the output of Plan Risk Management?

Risk Management Plan

  • Risk Management Plan
  • Risk Register
  • Risk Breakdown Structure
  • Probability & Impact Matrix

Determining the probability and impact of each risk is done during which process?

Perform Qualitative Risk Analysis

  • Perform Qualitative Risk Analysis
  • Perform Quantitative Risk Analysis
  • Identify Risks
  • Plan Risk Responses

Which process allows the PM to reduce the level of uncertainty and focus on high-priority risks?

Perform Qualitative Risk Analysis

  • Perform Quantitative Risk Analysis
  • Perform Qualitative Risk Analysis
  • Plan Risk Responses
  • Perform Risk Priority Assessment

In which process group would you find Perform Qualitative Analysis and Perform Quantitative Risk Analysis?

Planning

  • Initiating
  • Planning
  • Executing
  • Monitoring & Controlling

Which tool helps the PM determine if qualitative risk analysis is based on good information?

Risk Data Quality Assessment

  • Risk Data Quality Assessment
  • Diagramming Techniques
  • SWOT Analysis
  • Expert Judgement

Which project document helps determine who can help identify risks?

Stakeholder Register

  • Project Charter
  • Scope Statement
  • Assumptions Log
  • Stakeholder Register

What tool helps the PM understand if things believed to be true are reliable enough to base project decisions on without uncertainty?

Assumptions Analysis

  • Assumptions Analysis
  • Expert Judgement
  • SWOT Analysis
  • Documentation Reviews

During which process is the cost and time value of top risks determined?

Perform Quantitative Risk Analysis

  • Perform Quantitative Risk Analysis
  • Perform Qualitative Risk Analysis
  • Perform Risk Reassessment
  • Plan Risk Responses

Which process uses Data Gathering and Representation Techniques?

Perform Quantitative Risk Analysis

  • Perform Quantitative Risk Analysis
  • Perform Qualitative Risk Analysis
  • Plan Risk Responses
  • Identify Risks

What is the output of Perform Quantitative Risk Analysis?

Project Documents Updates

  • Project Documents Updates
  • Risk Register Updates
  • Risk Analysis Matrix
  • Risk Management Plan

Which of the following is not an input to Perform Quantitative Risk Analysis?

Scope Baseline

  • Risk Management Plan
  • Cost Management Plan
  • Scope Baseline
  • Schedule Management Plan

What is the $$ value assigned to top risks?

Expected Monetary Value

  • Expected Monetary Value
  • Contingency Reserve
  • Reserve Funding
  • Earned Value

How do you identify Threats versus Opportunities?

Opportunities are represented by positive $$ amounts while Threats are represented by negative $$ amounts

  • Threats will have buffer time while Opportunities will have contingency reserve
  • Opportunities are represented by positive $$ amounts while Threats are represented by negative $$ amounts
  • Threats have a higher PIM score than Opportunities
  • The PM is more worried about Threats than Opportunities

What diagram is used for a Sensitivity Analysis?

Tornado Diagram

  • Tornado Diagram
  • Ishikawa Diagram
  • Contingency Matrix
  • Control Chart

How is Expected Monetary Value of each risk determined?

Probability multiplied times Impact

  • By utilizing a Control Chart
  • Probability multiplied times Impact
  • Earned Value minus Planned Value
  • By performing a Sensitivity Analysis

Which process addresses risks by their priority, inserting resources and activities into the budget, schedule and PM Plan as needed?

Plan Risk Responses

  • Plan Risk Responses
  • Plan Risk Management
  • Perform Quantitative Risk Analysis
  • Perform Risk Resource Estimates

What are the outputs of Plan Risk Responses?

PM Plan Updates & Project Documents Updates

  • PM Plan Updates & Project Documents Updates
  • Risk Register Updates & Assumptions Log Updates
  • Risk Management Plan & Risk Breakdown Structure
  • Risk Register & Risk Management Plan

Which process should begin after Perform Quantitative Risk Analysis?

Plan Risk Responses

  • Plan Risk Management
  • Plan Risk Responses
  • Plan Risk Contingencies
  • Identify Risks

Which risk strategy changes the PM Plan to eliminate threat posed by the risk?

Avoid

  • Avoid
  • Mitigate
  • Transfer
  • Share

Which risk strategy shifts the negative impact of the risk along with ownership of the response to a third party?

Transfer

  • Mitigate
  • Share
  • Transfer
  • Exploit

Which risk strategy reduces the probability and/or impact to an acceptable threshold?

Mitigate

  • Mitigate
  • Transfer
  • Enhance
  • Accept

Which risk strategy ensures the risk definitely happens?

Exploit

  • Share
  • Enhance
  • Exploit
  • Transfer

Which risk strategy allocates ownership to a third party who is best able to capture the benefit?

Share

  • Share
  • Enhance
  • Exploit
  • Transfer

Which risk strategy identifies and maximizes key drivers of positive impact risks?

Enhance

  • Mitigate
  • Transfer
  • Enhance
  • Exploit

Which risk strategy can be used for both opportunities and threats?

Accept

  • Avoid
  • Mitigate
  • Accept
  • Transfer

What are responses designed for use only if certain trigger events occur?

Contingent Response Strategies

  • Ad hoc workaround
  • Contingent Response Strategies
  • Risk Plans
  • Pure Risks

What is any risk that can be insured, like property damage, health, life, equipment breakage ?

Pure Risk

  • Pure Risk
  • Business Risk
  • Secondary Risk
  • Residual Risk

What is any risk that cannot be insured, like loss of stock price, cost overruns, lost contract ?

Business Risk

  • Pure Risk
  • Business Risk
  • Secondary Risk
  • Residual Risk

What is any risk that still remains after a risk strategy has been implemented, like the deductible on an insurance policy ?

Residual Risk

  • Pure Risk
  • Business Risk
  • Secondary Risk
  • Residual Risk

What is 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 ?

Secondary Risk

  • Pure Risk
  • Business Risk
  • Secondary Risk
  • Residual Risk

Which is not an input to Control Risks?

WPI

  • WPD
  • WPR
  • WPI
  • Risk Register

Which process uses the tool of Risk Reassessment?

Control Risks

  • Identify Risks
  • Plan Risk Responses
  • Perform Quantitative Risk Analysis
  • Control Risks

During which process are risk reserves analyzed?

Control Risks

  • Control Risks
  • Plan Risk Management
  • Perform Qualitative Risk Analysis
  • Perform Quantitative Risk Analysis

Which process improves efficiency of the risk approach throughout the project to continuously optimize risk responses ?

Control Risks

  • Plan Risk Responses
  • Control Risks
  • Optimize Risk Responses
  • Plan Risk Management

Which tool of Control Risks helps a PM understand if risk response plans are adequate for the current risk exposure of the project?

Risk Audits

  • Risk Audits
  • Variance & Trend Analysis
  • Technical Performance Measurement
  • Reserve Analysis

Which of the following is not an output of Control Risks?

WPR

  • WPI
  • WPR
  • Change Requests
  • OPA Updates