CSC Risk Management & Problem-Solving 3 — Questions and Answers
Question 1: Which risk response is MOST appropriate when the probability and impact of a risk are both very low?
- Avoid
- Transfer
- Accept (Correct answer)
- Mitigate
Correct answer: Accept
Accepting a low-probability, low-impact risk is cost-effective since the effort to mitigate or transfer it would likely exceed the potential loss.
Question 2: A senior consultant must recommend a solution when stakeholders have conflicting priorities. Which problem-solving approach is MOST effective?
- Implement the solution preferred by the most senior stakeholder
- Use a weighted decision matrix to evaluate options against agreed criteria (Correct answer)
- Delay the decision until consensus is naturally reached
- Choose the lowest-cost option to avoid conflict
Correct answer: Use a weighted decision matrix to evaluate options against agreed criteria
A weighted decision matrix provides objective, transparent scoring against criteria that all stakeholders help define, reducing bias in the decision.
Question 3: What is the difference between a 'risk' and an 'issue' in project management?
- Risks are always negative; issues can be positive or negative
- A risk is a future uncertain event; an issue is a problem that has already occurred (Correct answer)
- Issues are tracked separately from the risk register
- Risks require escalation; issues do not
Correct answer: A risk is a future uncertain event; an issue is a problem that has already occurred
A risk is a potential future event that may or may not occur, while an issue is a current problem actively affecting the project.
Question 4: Which type of risk involves the possibility of both a gain and a loss?
- Pure risk
- Speculative risk (Correct answer)
- Residual risk
- Secondary risk
Correct answer: Speculative risk
Speculative risks carry the possibility of either a positive (upside) or negative (downside) outcome, unlike pure risks which only result in loss.
Question 5: After implementing a risk response plan, some level of risk still remains. This is known as:
- Secondary risk
- Residual risk (Correct answer)
- Contingent risk
- Inherent risk
Correct answer: Residual risk
Residual risk is the remaining exposure after risk responses have been applied and should be documented and monitored.
Question 6: A senior consultant applies 'reframing' during a problem-solving session. What does this technique involve?
- Changing the project budget to afford better solutions
- Viewing the problem from a different perspective to uncover new solutions (Correct answer)
- Assigning a new project manager to the problem
- Documenting the problem in a different format
Correct answer: Viewing the problem from a different perspective to uncover new solutions
Reframing shifts the lens through which a problem is viewed, often revealing alternative solutions that were invisible from the original perspective.
Question 7: Which element is LEAST likely to be found in a comprehensive risk register?
- Risk owner
- Probability and impact scores
- Stakeholder salary information (Correct answer)
- Risk response strategies
Correct answer: Stakeholder salary information
A risk register tracks risk attributes, owners, scores, and responses—stakeholder salaries are personal HR data unrelated to risk management.
CSC Risk Management & Problem-Solving 3
Which risk response is MOST appropriate when the probability and impact of a risk are both very low?