Free Project Risk Management Question and Answers — Questions and Answers
Question 1: Disaster scenarios (such as floods, earthquakes, etc.) have been noted as potential project risks. Your project sponsor advised you to create a contingency reserve (5% of the project budget) to be used in case of emergency scenarios after mentioning that no action could be taken to mitigate this risk at the project level. This is an illustration of:
- Risk Acceptance (Correct answer)
- Bad policy decision
- Risk Mitigation
- Risk Avoidance
Correct answer: Risk Acceptance
Explanation: <br> Since it is rare that all risks can be completely eliminated from a project, acceptance is an approach that frequently needs to be used. When using this tactic, the project team has either chosen against altering the project management plan to address a risk or has run out of options. This frequently entails "active acceptance," which makes use of a contingency reserve, which might be time, money, or resources placed aside to help offset the effects of a risk event.
Question 2: To create a risk management strategy for your project, you are organizing a planning meeting. Who ought to be invited?
- The project team leaders, key stakeholders, relevant subject matter experts, and anyone engaged in risk management activities for the company (Correct answer)
- Subject matter experts only
- Just the project sponsor because her perception of how the risks will be handled is the most important
- The corporate risk manager
Correct answer: The project team leaders, key stakeholders, relevant subject matter experts, and anyone engaged in risk management activities for the company
Explanation: <br> When determining who to invite to such sessions, keep in mind that risk planning should be a fairly inclusive process.
Question 3: You are a seasoned project manager talking to a novice PM about project risk. She is having a hard time telling what belongs in the risk register from what is in the risk management plan. Of the following, which is not a part of the risk management strategy?
- Methodologies used to handle risk
- Risk responses (Correct answer)
- Risk categories
- Roles and responsibilities
Correct answer: Risk responses
Explanation: <br> The risk management strategy, which outlines the framework and methodology for carrying out the various risk processes, includes all three of the correct answer options: A, C, and D. It is best to select option B. The risk registry contains records of risk responses.
Question 4: On your project, you are engaging in risk management efforts. You have identified all hazards and assembled all necessary stakeholders. After that, you evaluate the risks to decide how much contingency funding to include in the project baselines. What did you neglect to finish?
- You need to Identify Stakeholders to ensure you have identified all stakeholders needing to be involved in this process
- You need to Perform Qualitative Risk Analysis to prioritize the risks before Perform Quantitative Risk Analysis, which you may use to identify contingency reserve amounts (Correct answer)
- You need to Plan Risk Responses before doing determining contingency reserves
- You need to Perform Quantitative Risk Analysis to prioritize the risks before Perform Qualitative Risk Analysis, which you use to identify contingency reserve amounts
Correct answer: You need to Perform Qualitative Risk Analysis to prioritize the risks before Perform Quantitative Risk Analysis, which you may use to identify contingency reserve amounts
Explanation: <br> Prior to quantifying the risks, you must first prioritize the hazards (use qualitative risk analysis) (Quantitative Analysis). The risks will be ranked in order to determine which hazards are serious. Risks that have relatively low probability and low impact will be placed on a watch list and not quantitatively evaluated.
Question 5: Patrick is a brand-new project manager who is motivated to succeed. Patrick's mentor and sponsor, who has experience and a love of risk management, is certified. Given that it is often updated and utilized as both an input and an output in the majority of risk processes, which document would he advise Patrick to concentrate on?
- Risk audit (Correct answer)
- Risk probability and impact matrix
- Risk register
- Risk monitoring plan
Correct answer: Risk audit
Explanation: <br> The process of identifying risks produces the risk register, which is then used as input by other risk management procedures such as performing qualitative and quantitative risk analysis, planning risk mitigation strategies, and monitoring risks. As a result of all the aforementioned risk management methods, it is frequently updated.
Question 6: You discover that several of the risk owners are not on the project team when you implement risk responses. What is the most effective strategy to get them involved?
- Telling them that they will be held to account for their actions and inactions
- Influence (Correct answer)
- Monetary incentives
- Problem solving
Correct answer: Influence
Explanation: <br> Given that the risk owners are independent of the project manager, using influence would be suitable in this case.
Question 7: You discover a risk has a 25% chance of happening in any month of a project with an eight-month length during the Perform Qualitative Risk Analysis phase. A contingency reserve of 8% of the project budget has been set aside, and the project's cost performance index is 0.7. What is the likelihood that the risk will materialize in the sixth month?
- 20%
- 25% (Correct answer)
- 12.50%
- The question lacks sufficient information to answer
Correct answer: 25%
Explanation: <br> There is a 25% possibility that the risk will materialize each month. The further information in the query is not pertinent.
Free Project Risk Management Question and Answers
Disaster scenarios (such as floods, earthquakes, etc.) have been noted as potential project risks.
Your project sponsor advised you to create a contingency reserve (5% of the project budget) to be used in case of emergency scenarios after mentioning that no action could be taken to mitigate this risk at the project level.
This is an illustration of: